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Hindalco announces Q4FY24 results, net profit up by 32%

28 May 20244 mins read by Angel One
Hindalco's Q4FY24 results saw a 32% net profit increase, a 23.7% EBITDA rise, and strategic HBT acquisition, showcasing strong financial health and operational efficiency.
Hindalco announces Q4FY24 results, net profit up by 32%
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In Q4FY24, the company exhibited strong financial growth and improved operational efficiency compared to Q4FY23. Despite stagnant revenue from operations, the company saw a remarkable 32% increase in net profit, reaching Rs.3,174 crore. Moreover, EBITDA surged by 23.7%, indicating enhanced profitability and better management of operational costs. The EBITDA margin also saw a significant uptick, rising by 25o bps to reach 12%. These positive trends suggest that the company has successfully optimized its operations, resulting in a stronger financial performance in Q4FY24.

Financial Highlights 

Parameters  Q4FY24 Q4FY23 Change
Revenue from Operations  Rs.55,994 Cr Rs.55,857 Cr +0.2%
Net Profit  Rs.3,174 Cr Rs.2,411 Cr +32%
EBITDA  Rs.7201 Cr Rs.5,327 Cr +23.7%
EBITDA Margin 12% 9.5% +250 bps

Segment Growth and Final Dividend 

The revenue from the copper business saw a significant uptick of 20%, driven by higher sales volumes and prices. Similarly, revenue from the aluminum segment increased by 5% to Rs.8,459 crore. Additionally, the company’s board has recommended a final dividend of Rs. 3.50 per share.

Acquisition of HBT’s Fabrication Facility

In its quarterly results, Hindalco revealed that its Board of Directors has approved the acquisition of HBT’s fabrication facility through a binding Memorandum of Understanding (MoU).

Management’s Commentary

Satish Pai, MD at Hindalco highlighted the company’s robust financial position in his statement. Despite repaying Rs.5,195 crore of debt in Hindalco India’s business over the year, the company maintains a sturdy balance sheet and ample liquidity. This financial strength positions them favorably to expand their growth trajectory and execute future plans through an efficient capital allocation.

Conclusion: Hindalco’s Q4FY24 performance showcases significant financial growth and operational improvements. With a 32% increase in net profit, a 23.7% rise in EBITDA, and a strategic acquisition of HBT’s fabrication facility, the company seems well-positioned for future expansion and success, reflecting its strong financial health and efficient operational strategies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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