Hindalco Industries Concall February 2025: Key Updates & Insights

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Hindalco Industries Concall – February 2025 Updates

Hindalco Industries Concall – February 2025 Updates

Strong ESG Performance

Hindalco Industries continues to lead in sustainability. The company ranked in the top 1% of the S&P Global Sustainability Yearbook 2025, securing the highest ESG score in the aluminum sector. Key highlights include:

79% of total waste was recycled and reused in the first nine months.
109% of bauxite residue and 101% of ash were successfully recycled.
Six facilities received Zero Waste to Landfill certification.
16 out of 19 sites met Zero Liquid Discharge standards, improving water recycling efforts.

Impressive Financial Performance

Hindalco reported strong financial growth in the last quarter:

Consolidated EBITDA rose 28% year-on-year to ₹8,100 crores.
Net profit after tax increased 60% year-on-year to ₹3,735 crores.
The Indian aluminum business saw exceptional growth:
- EBITDA surged 69% YoY to ₹4,776 crores.
- Net profit soared 134% YoY to ₹2,885 crores.
Novelis shipments declined 1% YoY to 904 Kt due to high aluminum scrap prices, leading to a 19% drop in EBITDA to $367 million.

Operational Highlights

Indian aluminum business EBITDA recorded a 73% YoY jump to ₹4,222 crores, helped by lower input costs.
Aluminum downstream shipments increased 10% YoY to 99 Kt.
Copper business showed steady growth:
- Metal shipments stood at 120 Kt.
- Copper EBITDA climbed 18% YoY to ₹777 crores.

Market Outlook

Global GDP growth is projected to be 3.3% for FY ’25 and ’26.
India’s economic growth slowed to 6% in H1 FY ’25, but it is expected to improve in the second half, driven by festive demand.
Aluminum demand in India is estimated at 1,403 Kt, reflecting an 11% YoY growth, mainly driven by electrical and packaging sectors.

Strategic Developments

Hindalco continues to strengthen its long-term strategy:

Meenakshi coal mine acquisition ensures better coal pricing and long-term supply security.
Aditya FRP project will increase downstream capacity to 600 Kt per annum by June 2025.
New copper inner grooved tube plant is set to launch this month.

Challenges & Management Insights

GHG emissions rose due to higher power consumption at smelters, but efficiency improvements are in progress.
Novelis margins are under pressure due to high aluminum scrap prices. The company is working on cost control measures.
Copper EBITDA for next year is expected at ₹600 crores per quarter, slightly lower than current levels due to anticipated TC/RC reductions.

Commodity Pricing & Hedging

For Q4 FY ’25, 35% of aluminum is hedged at $2,600 per ton, with 15% under a zero collar.
Copper EBITDA projections indicate a cautious approach due to TC/RC price fluctuations.

Despite market fluctuations, Hindalco remains optimistic. With strong operational efficiency, strategic expansions, and sustainability efforts, the company is well-positioned for steady growth in the coming quarters.