Hindalco shines bright: Q2 profit surges 78% Hindalco’s stock rose by over 2% on November 12 following the company’s Q2FY25 earnings, which exceeded estimates. The metals and mining company reported a net profit of Rs 3,909 crore for the quarter, up from Rs 3,298 crore in the previous year. Its revenue also increased by 7% to Rs 58,203 crore compared to Rs 54,169 crore a year earlier.

CLSA issued a ‘Buy’ rating on Hindalco with a target price of Rs 800 per share, citing a 35% beat on EBITDA, which reached Rs 4,300 crore. The company’s aluminium EBITDA per tonne rose by $96 despite a $140 decline in London Metal Exchange (LME) aluminium prices, demonstrating strong operational performance.

On the other hand, ICICI Securities downgraded the stock to ‘Add’ from ‘Buy’ with a target price of Rs 790, citing near-term concerns like rising scrap prices, which may impact profitability. Despite this, the brokerage remains positive on the long-term outlook, supported by ongoing investments and strong demand for beverage cans.

As of 10:40 am, Hindalco shares were trading around Rs 660.75 on the NSE, up about 1%, and have risen by 35% over the past 12 months, outperforming the Nifty’s 23% gain during the same period.

Shares of Hindalco Industries rose by up to 2.77% to an intraday high of Rs 673.50 on November 12, following the company’s announcement of its Q2FY25 earnings. The company reported a significant 123.3% year-on-year increase in net profit, reaching Rs 1,891 crore compared to Rs 847 crore in the same quarter the previous year. Revenue from operations grew 7.7% to Rs 22,262 crore, and EBITDA surged 56.5% to Rs 2,749 crore, with a margin improvement to 12.4% from 8.5% in Q2FY24.

The aluminium upstream segment saw an impressive 80% increase in EBITDA per tonne to $1,349, while copper business set a record with a 27% increase in EBITDA to Rs 829 crore. However, Novelis faced challenges from the Sierre flood and tighter scrap spreads, though shipments increased by 4%, and EBITDA per tonne stood at $502.

In India, Hindalco’s aluminium upstream revenue rose 16% to Rs 9,125 crore, with EBITDA growing 79% to Rs 3,709 crore. Copper revenue grew by 5% to Rs 13,114 crore, but copper metal sales declined by 13%. The company maintained strong cash flow and kept its net debt-to-EBITDA ratio below 1.2x.

Despite an 8.4% increase in stock price year-to-date, Hindalco’s shares have gained 37% over the past year, underperforming the BSE Sensex, which has risen 21.7% in the same period. As of 10:19 AM, the stock was trading at Rs 660.50, 0.81% higher. Hindalco’s market capitalization stands at Rs 1.48 trillion, with a P/E ratio of 26.24 times and an earnings per share of Rs 24.97.

Hindalco shines bright: Q2 profit surges 78%  Hindalco Industries reported a strong performance for Q2FY25, with net profit rising 78% year-on-year to ₹3,909 crore, compared to ₹2,196 crore in the same quarter last year. The total income for the quarter reached ₹59,278 crore, marking an 8.5% increase from ₹54,632 crore in Q2FY24. Revenue from operations also rose to ₹58,203 crore, up from ₹54,169 crore in the previous year.

The company’s total expenses increased by 3.2% to ₹53,121 crore. Its US subsidiary, Novelis, saw a revenue increase to ₹35,975 crore from ₹33,961 crore, though it made a ₹907 crore adjustment due to different accounting policies.

Hindalco’s aluminium upstream segment reported revenue of ₹9,125 crore, up from ₹7,878 crore, while aluminium downstream revenue grew to ₹3,161 crore from ₹2,868 crore. The copper segment posted a revenue increase to ₹13,114 crore, from ₹12,441 crore in Q2FY24.

Hindalco’s India business performed strongly, with its aluminium upstream business achieving an EBITDA per tonne of $1,349, the highest in the past 10 quarters. The copper business also posted a record EBITDA. Despite challenges from flooding at its Sierre plant, Novelis maintained strong global operations, achieving record beverage packaging shipments. The company also highlighted significant progress in its growth projects in India and at Novelis. Hindalco’s solid cash flow allowed it to maintain a consolidated net debt-to-EBITDA ratio below 1.2x.

Hindalco is the metals arm of the Aditya Birla Group, involved in bauxite mining, alumina refining, coal mining, aluminium smelting, and various downstream activities, with over 52 manufacturing units across 10 countries.