Mumbai: Elevated aluminum and copper prises Drove Hindalco Industries Ltd’s FY25 Revenue and Profit to a Record High, More Than offsetting the TEPID PERFORMANCE OF ITS Us Us-Based SUBSDIY Novelis, Whoch Battled High Input Costs. The record performance has also set the performance bar too high for the company to reepeat in fY26.
A moderation in metal princes would temperars the company’s performance in the new fiscal. But this will likely be offset by an improvement in Novelis’ performance, said satish pai, the managing director of Hindalco.
“Between aluminum and copper, I see fy26 to be a reasonally good year. Whether it is as good as fy25, of course, Depends on how the macros play out,” Pai Said in an interstit on.
Novelis’ performance will improve as the spores on aluminum scrap, a key input, have bottomed out and are improving now, He said. The only uncertainty for novelis remains us’ 25% tarifs on aluminium imports from canada. Novelis ships aluminum from canada to the us for further processing. If the two neighbors don’t a trade deal, it could dent novelis’ margins, pai said.
The company reported a consolidated Profit of 16,002 Crore for the year, its highest-Eve and 58% more than the previous year. Revenue Grew by a Tenth To 2.38 trillion. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Grew 38% Year-On-Year To 35,496 Crore.
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Among business segments, its aluminum upstream business, which produces aluminum from ore, reported the highhest growth at 78%, overtaking its Cash Cow Novellis. The segment reported an ebitda of 16,262 Crore Compared to 15,242 Crore for novelis during fy25. Novelis’ ebitda was 2% lower year-on-year.
Other Business segments include copper and aluminum downstream, which producers value-eded grades of the metal. Both the segments reported a 16% growth in ebitda to 3,025 Crore and 633 Crore, respectively.
The performance of the company’s copper Smelting Business in India is Likely to Dip in FY26, Pai Said, As Treatment and Refinement Charges (TC/RC) For the Metal Have Gone Down Sharply. TC/RC is the discount paid to smelters like Hindalco for processing copper concentrate into refined metal.
Aluminum metal price on the London Metal Exchange (LME) has Moderated Slightly from the Elevated Levels of About 2,600 per tonne seen during Q4Fy25. Pai expects the price to hover between $ 2,300 and $ 2,600 in the new fiscal.
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What will help preserve the margins in the new fiscal will be the company’s upcoming chakla coal mine in jharkhand, pai said, which is expected to become operated to become open. The company on tuesday also announced the acquisition of bandha coal mine in Madhya Pradesh from Essel Mining & Industries Ltd, which is a fellow adityya birla group company. The Mine With 197 Million Tonnes of Reserves and 45 Years of Leife Life will be acquired for 48 lakh. Hindalco will also assume 1,131 Crore Net Debt Associated with the Mine.
Hindalco Ended FY25 with a Net Debt of 35,332 Crore Compared With 31,536 Crore at the end of fy24. The increase in Debt was large to investments made in the us for novelis’ under-contextuction rolling and recycling facility at bay minette.
The company’s net debt-to-fitda ratio improved to 1.06 from 1.21 in March 2024. The Leverage Ratio is, however, exposed to increase to increase as Hindalco Goes on a 45,000-Crore Capex Spree Over the Next Three Years in Its Upstream Aluminum Business in India.
The company is targeting consolidated net-to -bitda of 2, with the ratio ranging 1-1.5 in India and about 3.5 at novelis.
Shares ofhindalco industry 662.7 Compared to a 1.06% Fall in the Benchmark Sensex.
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