Hindalco Q1 Review - Strong Quarter; Focus On Downstream Products To Continue; Maintain Add: Yes Securities

Yes Securities Report

Hindalco Industries Ltd.’s Q1 FY25 performance was above the consensus estimates owing to higher London Metal Exchange pricing for the Indian aluminium business, strong Novelis performances as well as higher copper volumes for CC Rods.

Higher realisations clubbed with a fall in the cost structure for aluminium production helped margin expansion during the quarter. On the operational front, Novelis reported shipments to be flattish at 951k and an Ebitda/tonne of $525/tonne.

The management continues to guide the same for the full year of FY25, slowly increasing it with incremental capacities to reach $600/tonne by the end of FY27E.

The Indian upstream aluminium business showed robust growth on the margin front, however, the shipments were marginally lower and stood at 329 kt for Q1 FY25 versus 337 kt in Q4 FY24.

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