By Manvi Pant
(Reuters) -Hindalco Industries, one of India’s largest copper and aluminium producers, reported fourth-quarter profit above analysts’ estimates on Tuesday, driven by a surge in commodity prices.
Consolidated net profit for the Aditya Birla Group-owned firm rose to 52.83 billion rupees ($618.05 million) for the quarter ended March 31. Analysts had expected, on average, 44.97 billion rupees, as per data compiled by LSEG.
The benchmark three-month aluminium and copper rose 17% and 10% on-year, respectively, during the reporting quarter. Higher commodity prices tend to drive up selling prices and margins for mining companies.
Hindalco’s copper business logged a 9% growth in revenue, with its aluminium upstream and downstream businesses logging a 22% and 23% rise in revenue, respectively.
While the company did not disclose its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin, it “stood at 13.5% in the quarter, from 11.9% a year ago,” according to Rajesh Majumdar, an analyst at B&K Securities India.
Its unit Novelis, the world’s largest aluminium recycler, reported a 13% rise in quarterly net sales earlier this month, pushing up its parent’s revenue 16%.
The company accounts for 61% of Hindalco’s overall revenue.
Novelis’ adjusted EBITDA fell 8% year-on-year due to high aluminium scrap prices, but rose 29% sequentially, which analysts see as a positive development for the company.
The U.S.-based unit refrained from providing an outlook for margins and volumes for fiscal 2025 due to uncertainty around U.S. President Donald Trump’s tariffs.
Hindalco forecast positive growth in fiscal 2026 for both the parent and its unit, but CEO Satish Pai tempered it with a warning, in a post-earnings call, that commodity prices are “slightly on the lower side currently” due to global uncertainties, including top consumer China’s growth aspects.
He also forecast a capex of 75 billion-80 billion rupees of capex in India for fiscal 2026, above the 60 billion rupees capex forecast for fiscal 2025.
($1 = 85.4790 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Janane Venkatraman)
