Hindalco expected to report 65% rise in Q2 profit on lower cost

Hindalco Industries, an Aditya Birla Group company, is expected to report 65 per cent rise in September quarter net profit at ₹3,625 crore against ₹2,196 crore logged last year, despite a weak performance by its wholly-owned US subsidiary Novelis plc.

Revenue is expected to jump 6 per cent to ₹57,704 crore (₹54,169 crore), as per Axis Securities report.

EBITDA may increase 26 per cent to ₹7,092 crore (₹5,638 crore).

Axis Securities assume slightly higher Aluminium sales even as Novelis shipments declined slightly due to the impact of the Flooding in Sierre, Switzerland, partially offset by cover-up in volumes from other regions.

We assume flat copper sales volume QoQ, it said.

Average LME Aluminium prices inched up by 10 per cent YoY. Average Alumina prices stood at $508 a tonne in Q2FY25, up 51 per cent.

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Consolidated Revenue to increase YoY/QoQ led by higher Aluminium shipments and metal premiums and Alumina prices, partially offset by lower Novelis shipments, it said.

EBITDA increase led by higher Upstream aluminium prices and lower power costs and margins improved led by easing of the coal costs at Indian operations.

Novelis reported a net income of $128 million for the quarter ending September of the current financial year.

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Novelis had to pay $61 million in charges due to production interruptions at its Sierre plant, higher restructuring and impairment expenses, and decreased operational performance.

The US-based company posted a net income of $157 million in the same quarter a year ago. Hindalco is yet to report its quarterly earnings for the second quarter of the current fiscal year.