Hindalco Industries Ltd: History, Latest Updates, Milestones, Subsidiaries, and Share Price

INTRODUCTION

Hindalco Industries, a prominent nonferrous metal producer based in India, serves as the cornerstone of the Aditya Birla Group, a leading successor of the Birla Group, one of the nation's top three conglomerates. Specializing in aluminum smelting and the production of aluminum and copper goods, Hindalco operates in over 30 countries, with a substantial portion of its sales originating from international markets.

Established in 1958, Hindalco inaugurated an aluminum facility in northern India's Uttar Pradesh state in 1962. Ghanshyam das Birla, the head and founder of the Birla Group, founded Hindalco to diversify into the metals industry. Following G.D. Birla's demise, the Birla Group underwent a division into multiple entities, and Hindalco became part of the Aditya Birla Group, inheriting the critical businesses of its predecessor. Since 1995, guided by Kumar Mangalam Birla, the Aditya Birla Group has been on a global expansion journey. In 2007, the group made a substantial move by acquiring Novelis, a major U.S. producer of rolled aluminum products, for a significant $6 billion.

This acquisition played a pivotal role in elevating the group's standing in the worldwide market for rolled aluminum.

Hindalco Industries Ltd. moves in 2023:

Hindalco Industries Ltd. has achieved remarkable financial milestones for the quarter and fiscal year 2023.

• Consolidated Revenue: Hindalco Industries Ltd. reported a consolidated revenue of Rs. 2,23,202 crore, reflecting a robust growth of 14 percent year on year (YoY).

• Consolidated PAT: The consolidated Profit After Tax (PAT) stood at Rs. 10,097 crore, marking a decrease of 26 percent YoY.

• Consolidated EBITDA: Hindalco's overall financial performance, as reflected in its Consolidated EBITDA, revealed a figure of Rs 24,131 crore. However, it faced a notable setback with a 20 percent year on year decline.

• Record-breaking Aluminum Downstream EBITDA: Marking a significant achievement, the company announced an all-time high Aluminum Downstream EBITDA of Rs. 627 crore, showcasing an impressive YoY increase of 64 percent.

• All-time High Copper EBITDA: Similarly, Hindalco celebrated an all-time high Copper EBITDA of Rs. 2,253 crore, exhibiting a substantial YoY growth of 62 percent.

• ESG Performance: Hindalco-Novelis secured a position in the top 1 percent of the S&P Global ESG score in the aluminum industry, highlighting the company's commitment to environmental, social, and governance principles.

• Dividend Recommendation: The board has recommended a dividend of 300 percent (Rs. 3 per share) for the fiscal year 2022-23, as opposed to 400 percent (Rs. 4 per share) for the previous fiscal year 2021-22.

Evolution of Hindalco Industries Ltd.: From Past to Present:

• 1958: Ghanshyam Das Birla laid the foundation for Hindalco Industries Ltd., marking the inception of India's robust aluminum industry.

• 1962: Hindalco reached a milestone by inaugurating its aluminum facility in Renukoot, Uttar Pradesh, a significant move to enhance its aluminum production capabilities.

• 1989: Hindalco expanded its operations and diversified its product portfolio by acquiring Indian Aluminium Company Limited (Indal).

• 2000: Global Expansion: Hindalco extended its footprint, establishing a presence in multiple countries and solidifying its position in the global market.

• 2007: The acquisition of Novelis Inc. significantly strengthened Hindalco's international presence in the aluminum sector.

• 2013: The establishment of Utkal Alumina International Ltd. in Odisha signifies Hindalco's expanding footprint in the alumina market.

• 2015: Hindalco amplified its aluminum production capacity by establishing a new Greenfield aluminum smelter in Madhya Pradesh.

• 2020: Through Novelis Inc., Hindalco secured Aleris Corporation, reinforcing its global standing in the aluminum industry.

• 2021: Hindalco received the 'Sustainable Corporate of the Year Award—1st Runner Up' at the Frost & Sullivan and TERI Sustainability 4.0 Awards 2021. Additionally, it was honored with the Warehouse and Logistics Excellence Award 2021 in the manufacturing category from Quantic.

• 2022: Hindalco bolstered its business portfolio by acquiring Hydro’s aluminum extrusion Business in Andhra Pradesh. Additionally, the company entered into a Memorandum of Understanding with Phinergy and IOC Phinergy, marking a new chapter of collaboration and growth.
  

Timeline of Hindalco Industries Ltd.

Inside Hindalco Industries Ltd: Exploring Subsidiary Ventures 

Hindalco Industries Ltd

Corporate actions: Hindalco Industries Ltd. recently declared a robust 300% equity dividend of Rs. 3.00 per share for the fiscal year ending March 2023, demonstrating a consistent dividend track record over 5 years. The dividend yield stands at 0.58%, reflecting the company's financial strength. In the Quarterly Results Board Meeting on November 10, 2023, the focus was on analyzing the financial performance for the quarter and providing investors with insights into the company's strategic direction and future outlook. These actions emphasize Hindalco's commitment to shareholder value and financial transparency.

Main News: Hindalco's Q3 2023 Highlights: Sales Dip, EBITDA Rises

Hindalco Industries Ltd. has disclosed its Q3 2023 financials, revealing a 3.57% dip in net sales at Rs 54,169.00 crore. Despite a marginal 0.41% decline in net profit (Rs. 2,196.00 crore), the company showcased resilience with a 6.77% uptick in EBITDA (Rs. 6,075.00 crore). Earnings per share (EPS) saw a modest downturn from Rs. 9.92 to Rs. 9.88. These figures provide a snapshot of Hindalco's Q3 performance, prompting scrutiny of market conditions and operational strategies. Investors are eyeing management insights for future outlooks and strategic moves.

Novelis Inc.

Main News: Novelis, Hindalco's subsidiary, Beats Profit Target Early

Novelis, part of Hindalco Industries, surpassed its profit goal ahead of schedule with a 6% volume increase. Hindalco's stock holds steady at Rs 481.7 on the BSE, down 0.2%, while the Sensex slightly declines to 64,919 points. Novelis's stellar performance, achieving $519 per ton of EBITDA early, significantly impacts Hindalco's overall earnings. All attention now turns to Hindalco's Q2 report on November 10, expected to benefit from Novelis's positive momentum.

Utkal Alumina International Ltd.

Main News: Government Greenlights INR 2,840 Crore Investments, 3,000 Jobs Expected

The State Level Single Window Clearance Authority (SLSWCA) has approved proposals totaling INR 2,840 crore, aiming to create 3,000 jobs. Notable approvals include RCR Steel Works' INR 896.98 crore investment in a steel plant in Jamda, Mayurbhanj district, and expansions by Utkal Alumina International Ltd. and Hindalco Industries Limited, promising a combined investment of nearly INR 1,000 crores.

Main News: Aditya Birla Capital's Q1 2023 Financial Highlights: Strong Growth Across Segments

Aditya Birla Capital Limited announced robust Q1 2023 financial results, with a 39% YoY increase in consolidated revenue to Rs 8,144 crore. Profits after tax surged by 51% to Rs 649 crore. The lending portfolio saw a remarkable 43% YoY and 6% sequential growth, reaching Rs 1,00,400 crore. The gross premium in life and health insurance grew by 19% YoY to Rs 3,877 crore. The total assets under management (AUM) reached approximately Rs 3.9 lakh crore, reflecting a solid 9% YoY growth.

Aleris Corporation:

Aleris, a privately-owned enterprise, stands at the forefront as a global provider of aluminum rolled products, catering to a spectrum of industries including aerospace, automotive, construction, commercial transportation, and industrial manufacturing. Anchored in the vibrant city of Cleveland, Ohio, Aleris strategically oversees manufacturing operations spanning North America, Europe, and Asia. This strategic positioning underscores Aleris' commitment to excellence and accessibility, ensuring tailored solutions for clients across the continents.

What really sets Aleris apart is its deep expertise across various sectors, making it a major player in the global aluminum industry.

Other News: 

• Hindalco's Stock Rises on Bauxite Supply MoU in Odisha

Hindalco Industries witnessed a stock surge after signing an MoU for long-term bauxite supply to its proposed alumina refinery in Kansariguda, Odisha. The agreement strengthens the raw material foundation for the project in the Rayagada district, indicating positive developments for Hindalco in the region.

• Hindalco Surges 2% on Increased Trading Activity

Hindalco recently announced a notable 2% gain in its stock, attributed to higher trading volumes. At their yearly gathering, the company shared plans to invest up to Rs 2,000 crore in establishing a cutting-edge copper and e-waste recycling facility in India, signaling a pioneering effort in the country.

Hindalco Industries Ltd NSE/BSE: Current Share Prices 

Achievements and milestones:

2023:

• Most Honored Company in Asia Executive Team Survey

• Award for Environmental and Social Initiatives

• Best Annual Report Award in the Metals and  Mining Sector

• Pollution Control Excellence Award from State Pollution Control Board, Odisha

2022:

• The World's Most Sustainable Aluminum Company (S&P Dow Jones)

• Mahan CPP 'Excellent Energy Efficient Unit' in CII Award

• Renukoot received the Excellent Energy Efficiency Unit Award.

2021:

• Certified as a Great Place to WorkTM

• wins the 'Sustainable Corporate of the Year Award' and more.

CONCLUSION

Hindalco Industries Ltd. stands as a pivotal force in the metals industry, providing a diverse array of dependable aluminum and copper products. From Eternia to Birla Balwan, each brand within the Hindalco umbrella reflects a steadfast commitment to quality and innovation. With a pervasive global footprint and an unwavering dedication to sustainability, Hindalco consistently contributes to the prosperity of industries and the contentment of customers worldwide, fostering trust and satisfaction in every collaboration. The company's persistent growth and unwavering pursuit of excellence firmly establish it as a reliable and esteemed presence in the global marketplace.

Frequently Asked Questions:

1. What is the present stock price of Hindalco Industries Ltd.?

To find out the latest stock price for Hindalco Industries Ltd., kindly visit the Hindalco Industries Ltd. share price page.

2. How is Hindalco Industries performing in terms of sales growth?

Hindalco Industries has shown commendable sales growth of 14.43%, with the latest quarter sales reaching Rs. 89,311.0 crore. The company is maintaining a strong sales trajectory.

3. What is Hindalco Industries' profit growth, and what factors contribute to it?

Hindalco Industries reports a significant profit growth of -28.90% over the year, reaching Rs. 94,806.0 crore. The decline is attributed to certain factors affecting profitability.

4. How does Hindalco Industries manage its operating performance?

The operating profit of Hindalco Industries in the latest quarter was Rs. 1,097.44 crore, reflecting the company's operational efficiency. This metric aids in evaluating the company's financial health and decision-making.

5. What financial parameters indicate Hindalco Industries' stability?

Hindalco Industries maintains a robust ROE (return on equity) of 11.65% and a low Debt to Equity ratio of 0.01, showcasing financial stability despite the challenges typical of the metals and mining industries.

6.  What is the highest Hindalco Industries Limited share price recorded in the past 52 weeks?

The highest Hindalco Industries Limited share price in the last 52 weeks is Rs. 504. If you are interested in the 52-week low, it is Rs. 308.95. For the latest and most accurate share price information, it is recommended to check real-time data on stock market platforms or the official Hindalco Industries website.

 

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