Hindalco Industries Ltd., incorporated in 1958, is a large cap company (having a market capitalization of Rs 110,164.80 crore) operating in the metals – non-ferrous sector.
The key product / revenue segments of Hindalco Industries Ltd. include copper / copper products, aluminum, other operating income, sale of services for the year ending March 31, 2021.
For the quarter ended 30-09-2021, the company reported total consolidated income of Rs 48,063.00 crore, up 15.47% from last quarter total income of Rs 41,625.00 crore and up by 52.45% compared to the total income for the same quarter of last year of Rs 31,528.00 crore. The company reported after-tax net profit of Rs 3,417.00 Crore in the last quarter.
Justification of the investment
The brokerage expects Hindalco (including Utkal Alumina) EBITDA to decline 2.7% quarter on quarter to ~ Rs.32.2 billion. The profitability of the aluminum segment is forecast to decline slightly from 1.4% qoq to ~ 31.2 billion rupees due to higher CoP (1,982 USD / t, up 6.7% qo quarterly) and lower volume (down 3.8% qoq to 325 kt) partially offset by higher achievement / t (up around 4.1% QoQ to Rs 2,40,494 / t ) and sale of additional alumina with a new alumina expansion of 0.5 mtpa. Copper segment EBITDA is expected to be down 12% quarter on quarter to Rs3.08bn. He expects Novelis to report sales volume of 965 kt, stable QoT and adjusted EBITDA of US $ 507 million, down 8.4% QoQ. We expect EBITDA / t of US $ 525, down 8.1% qoq, due to the base effect and higher energy costs.
Promoter / FII Holdings
The promoters held 34.64% of the company’s capital as of September 30, 2021, while the FIIs held 25.47% and the DII 20.61%.
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