Hindalco reports consolidated Q3 FY22 results

10 February 2022

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Positive macro trends and value-added product portfolio take performance to a new high

Net Profit up 96 per cent, at a record-high of Rs.3,675 crore

Key Highlights of Q3 FY22

  • All-time high Consolidated PAT at Rs.3,675 crore, up 96 per cent YoY
  • Consolidated EBITDA at Rs.7,624 crore, up 38 per cent YoY
  • Novelis’ quarterly Adjusted EBITDA at $506* million and EBITDA per ton at $544*, both up by 1 per cent YoY
  • Novelis Net Income from continuing operations at $259* million, up 33 per cent YoY
  • All-time high quarterly Aluminium India EBITDA at Rs.3,376 crore, up 131 per cent YoY; EBITDA margins of 41 per cent
  • Consolidated Net Debt to EBITDA at a strong 1.62x as of December 31, 2021 vs 2.59x as of March 31, 2021
  • Hindalco acquires Hydro’s high-end extrusions facility at Kuppam, Andhra Pradesh
  • Hindalco retains position as the world’s most sustainable aluminium company in DJSI 2021
  • Hindalco achieves ‘S&P Global Sustainability Yearbook 2022 - Gold Class’ distinction
  • Hindalco named 'Sustainable Corporate of the Year Award - 1st Runner up' in the Frost & Sullivan and TERI Sustainability 4.0 Awards 2021
  • Hindalco certified as a Great Place to Work™ by the Great Place to Work™ Institute, India

*As per US GAAP

Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported its highest net profit in Q3 FY22, surpassing all previous quarterly performances. The company’s consolidated PAT surged to a record-high of Rs.3,675 crore, an increase of 96 per cent YoY.

The results were driven by a consistent performance by Novelis and an exceptional performance by India Business, supported by favorable macros, strategic product mix and an improved performance by the downstream business. Novelis continued to report consistent quarterly EBITDA despite challenges in the automotive segment due to the global semiconductor chip shortage, unplanned production downtime in South America and supply chain bottlenecks in Asia.

Consolidated Financial Highlights for the Quarter ended December 31, 2021

  (Rs. crore)
Particulars Q3 FY21 Q2 FY22 Q3 FY22 9M FY21 9M FY22
Revenue from Operations 34,958 47,665 50,272 91,478 1,39,295
Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA)          
Novelis* 3,711 4,100 3,792 9,022 11,982
Aluminium 1,461 3,247 3,376 3,622 8,975
Copper 240 352 390 547 1,003
All Other Segments 6 3 22 13 19
Business Segment EBITDA 5,418 7,702 7,580 13,204 21,979
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments 103 346 44 (153) 483
EBITDA 5,521 8,048 7,624 13,051 22,462
Finance Costs 861 1,291 852 2,835 2,963
PBDT 4,660 6,757 6,772 10,216 19,499
Depreciation & Amortisation (including impairment) 1,655 1,735 1,742 5,044 5,126
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax) 2 - 3 5 5
Profit before Exceptional Items and Tax 3,007 5,022 5,033 5,177 14,378
Exceptional Income/ (Expenses) (Net)# (178) 20 165 (526) 415
Profit Before Tax (After Exceptional Item) 2,829 5,042 5,198 4,651 14,793
Tax 808 1,615 1,538 1,414 4,452
Profit/ (Loss) from Continuing Operations 2,021 3,427 3,660 3,237 10,341
Profit/ (Loss) from Discontinued Operations (144) (10) 15 (1,682) (462)
Profit/ (Loss) After Tax 1,877 3,417 3,675 1,555 9,879
EPS (Rs/Share) 8.4 15.4 16.5 7.0 44.4
*As per US GAAP ;
#Exceptional Income / (Expenses) for the quarter and nine months ended December 31, 2021, exclude Rs.72 crore and Rs.418 crore, respectively, which represents the principal portion of (a) PIS/COFINS related tax credit income in Brazil Rs.12 crore for the Q3FY22 and Rs.358 crore (net of litigation cost of Rs.9 crore) for YTD FY22 and (b) tax rebates for sales to Manaus, Brazilian Free Trade Zone Rs.60 crore for the Q3 and YTD FY22, as it is included in the results of Novelis’ segment.

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said:

“Our sustained performance and strong balance sheet are driving our plans for further organic capex. We have already announced over Rs.3,000 crore investments in our downstream pipeline – Hirakud and Silvassa, and the acquisitions of Ryker and Hydro’s Kuppam units. Novelis too has announced capital projects that align market growth with sustainability considerations. An example is the $365 million closed-loop recycling and casting centre for the North American market.

Budget 2022 made clear the Indian Government’s intent and impetus on infrastructure. We foresee a surge in demand for Aluminium and Copper and are well-positioned to serve the market. We have already planned an investment of Rs.825 crores under the Government’s Production Linked Incentive (PLI) scheme reiterating our commitment to a self-reliant India.

From an ESG viewpoint, our sustainable Business Model is being recognised globally. DJSI awarded us the Most Sustainable Aluminium Company for the second year running and we also achieved a Gold in the S&P Global Sustainability Yearbook 2022.”

Business Segment Performance in Q3 FY22 (vs Q3 FY21)


Novelis recorded quarterly adjusted EBITDA of $506 million (vs $501 million), up 1 per cent YoY, on the back of strong product pricing and mix as well as favourable metal benefits, which mitigated inflationary cost pressures and supply chain disruption-related costs. Novelis reported an Adjusted EBITDA per ton of $544 in Q3 FY22, compared to $537 in the prior year, an increase of 1 per cent YoY.

Novelis’ Net Income from continuing operations was $259 million, up 33 per cent YoY, mainly driven by lower interest expense in Q3 FY22. Revenue was $4.3 billion (vs $3.2 billion), up 33 per cent YoY, driven by higher global aluminium prices. Total shipments of flat rolled products (FRPs) were flat at 930 Kt (vs 933 Kt) YoY. Q3 reflected higher aerospace and automotive shipments, despite semiconductor constraints in automotive, offset by lower can shipments mainly due to unplanned production downtime in South America and supply chain bottlenecks in Asia.

Aluminium India

EBITDA was at an all-time high of Rs.3,376 crore in Q3 FY22, compared with Rs.1,461 crore for Q3 FY21, an increase of 131 per cent YoY, primarily due to favourable macros, higher volumes, better operational efficiencies and improved performance of downstream business. EBITDA margins were at 41 per cent and continue to be the best in the industry. Revenue was Rs.8,243 crore in Q3 FY22 vs Rs.5,294 crore in the prior year period. Aluminium India Business recorded metal production of 327 Kt vs 315 Kt in the corresponding quarter. Aluminium metal sales were up 3 per cent YoY at 325 Kt vs 315 Kt in the prior year. Aluminium VAP (excluding wire rods) sales volumes were at 86 Kt (vs 80 Kt), up 8 per cent YoY, driven by recovery of the domestic market. VAP sales, as a percentage of total metal sales, were 27 per cent this quarter vs 25 per cent in the same quarter last year, in line with market recovery.


All smelters ran optimally delivering a consistent performance in Q3 FY22. Copper Cathode production was at 102 Kt in Q3 FY22 (vs 51 Kt in Q3 FY21), higher by 99 per cent YoY. While overall copper metal sales were at 110 Kt (vs 73 Kt in Q3 FY21), Copper Continuous Cast Rod (CCR) sales in Q3 FY22 were up 9 per cent YoY, at 71 Kt (vs 65 Kt in Q3 FY21) in line with market demand. EBITDA for the business stood at Rs.390 crore in Q3 FY22 compared to Rs.240 crore in Q3 FY21, up 63 per cent YoY on the back of higher volumes, better operational efficiencies and improved by-product realisations. Revenue from the Copper Business was Rs.10,255 crore this quarter, up 67 per cent YoY, primarily due to higher global prices of copper and higher volumes.

Consolidated Results

Hindalco reported an EBITDA of Rs.7,624 crore (vs Rs.5,521 crore), up 38 per cent YoY. The results were driven by positive macros and focus on downstream value-added products along with better operating efficiencies. Consolidated Revenue for the third quarter stood at Rs.50,272 crore (vs Rs.34,958 crore), up 44 per cent YoY. Consolidated PAT in Q3 FY22 rose to a record Rs.3,675 crore from Rs.1,877 crore in Q3 FY21, a jump of 96 per cent YoY. Consolidated Net Debt to EBITDA was at a strong 1.62x on December 31, 2021 compared to 2.59x on March 31, 2021.

Business Updates & Recognition

  • Aleris Integration work continues with over $100 million run-rate combination cost synergies.
  • Novelis’ strategic growth capital projects totalling  approximately $870 million to commence in this calendar year and begin commissioning in CY2024 as below: 
    • $375 million investment to expand its rolling and recycling capabilities in Zhenjiang, China. This includes a new cold mill, automotive casting house, recycling capabilities, hot mill upgrade, etc.
    • $130 million investment at its Oswego, New York plant to increase hot mill capacity by 124 Kt and enhance automotive sheet finishing capabilities.
    • $365 million highly-advanced recycling center with an annual recycling and casting capacity of 240 Kt in Guthrie, Kentucky in North America.
  • 500 Kt expansion project in Utkal Alumina has ramped up to its full capacity in record time.
  • Hindalco acquired Hydro’s 15 Kt high-end extrusions facility at Kuppam, Andhra Pradesh.
  • Hindalco successfully renewed 5.35 MTPA of coal linkages with Coal India Ltd, ensuring resource security.
  • Hindalco retained its position as the world’s most sustainable aluminium company in the Dow Jones Sustainability Index 2021:
    • Achieved overall score of 73 per cent against the global industry average of 30 per cent
    • The only aluminium company in the prestigious DJSI World Index 2021
  • Hindalco achieved ‘S&P Global Sustainability Yearbook 2022 - Gold Class’ distinction.
  • Hindalco named 'Sustainable Corporate of the Year Award - 1st Runner up' in the Frost & Sullivan and TERI Sustainability 4.0 Awards 2021.
  • Hindalco certified a Great Place to Work™ by the Great Place to Work™ Institute, India.

About Hindalco Industries Limited

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. An $18 billion metals powerhouse, Hindalco is the world’s largest aluminium company by revenues, and a major player in copper. It is also one of Asia’s largest producers of primary aluminium.

Guided by its purpose of building a greener, stronger, smarter world, Hindalco provides innovative solutions for a sustainable planet. Its wholly-owned subsidiary Novelis Inc. is the world’s largest producer of aluminium beverage can stock and the largest recycler of used beverage cans (UBCs).

Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, and a captive jetty. The copper smelter is among the world’s largest custom smelters at a single location. Hindalco’s global footprint spans 50 manufacturing units across 10 countries.

Registered Office: Ahura Centre, 1st Floor, B Wing, Mahakali Caves Road Andheri (East),
Mumbai 400 093; Website: www.hindalco.com; E mail: hindalco@adityabirla.com;Corporate Identity No. L27020MH1958PLC011238

Disclaimer: Statements in this “Media Release” describing the company’s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forward-looking statement, on the basis of any subsequent development, information or events, or otherwise.