Hindalco Industries ltd. Hit with ₹53 Crore Tax Demand by Odisha Authorities
Company Overview
The Aditya Birla Group’s main metals company, Hindalco Industries Limited, is a major producer of copper, one of Asia’s biggest producers of raw aluminum, and a world leader in the rolling and recycling of aluminum. Bauxite mining, alumina refinery, aluminum smelting, rolling, extrusion, and foil manufacturing are all parts of Hindalco’s operations in India. Its copper section, which produces copper rods and supplies more than half of India’s copper needs, including major contributions to Indian Railways, has a state-of-the-art bespoke smelter and captive jetty. Hindalco was founded on December 15, 1958, and began operations in 1962 with an initial capacity of 20,000 metric tons of aluminum metal and 40,000 metric tons of alumina in Renukoot, Uttar Pradesh. By 1965, the business had increased its rolling and extrusion downstream capabilities. To support its operations, the Renusagar Power Plant was put into service in 1968. A significant expansion, modernization, and diversification program was launched in 1994, laying the foundation for future growth. Hindalco ventured into aluminum foil production in 1998 with the establishment of its Silvassa plant. In 1999, it began manufacturing aluminum alloy wheels at the same location. During this time, the company’s capacity to produce Renukoot metal increased to 242,000 metric tons per year. Hindalco acquired a 74.6% share in the (Indal) in 2000. Hindalco is committed to growing its supply chain capabilities and develop innovative products. Hindalco broadened its product portfolio by introducing innovative solutions tailored to various industries, including telecommunications, air conditioning, and railways. Notably, it made history by launching India’s first aluminium freight rake in Odisha, marking a significant step in sustainable and efficient transport solutions. Hindalco is on the run to leave its remarkable footprints across the globe.
Returns Summary
| YTD | 1 Month | 6 Month | 1 Year | 2 Year | 3 Year | 5 Year |
| 0.50% | -6.59% | -9.85% | 2.06% | 31.18% | 36.51% | 186.91% |
Result Highlights
- Hindalco Industries Ltd. has demonstrated a robust performance in Q2FY25, showcasing increased profitability, business expansion. Its revenue increased to Rs. 58,203 Crores showcasing 7% growth on Y-o-Y basis.
- EBITDA grew to Rs. 9100 Crores in Q2FY25, showcasing a significant 49% Y-o-Y growth which shows improved profitability despite several segment challenges.
- Profit After Tax (PAT) surged to Rs. 3,909 Crores, showcasing 78% increase Y-o-Y basis which is a positive indication for the company in terms of profitability.
- Hindalco is planning to expand its capex which will involve an investment of $4-5 billion to increase its upstream capacity across two metals i.e., aluminium and copper. Funding will come from Internal accruals and debts amounting to Rs. 7200 Crores to Rs. 8,000 Crores, reflecting companies balanced and strategic move.
- In addition to the above plans, Hindalco has already committed a massive investment of Rs. 6,000 Crores for increasing downstream capabilities and has also proceeding with $4.1 billion Bay Minette Project in the U.S. Hindalco is standing with a great vision and continuously focusing on several strategies to boost its revenue growth.
Shareholding Pattern
Hindalco Industries receives ₹53 crore GST demand from Odisha Tax Authority
Hindalco Industries Ltd announced on Thursday that it has received a demand order worth around Rs 53 crore from the Odisha tax authority in a regulatory filing. The company revealed that the Central Goods and Services Tax (CGST) Commissioner in Rourkela has filed a claim under the Goods and Services Tax (GST) rules, which includes Rs 52.67 crore in fines and penalties.
The aluminum and copper manufacturing giant said The order was initially sent via after-hours email on Dec. 24, 2024. However, the company learned of the order on Thursday. After one employee quickly lost access to their official email account “As soon as we know the order. We will let you know,” Hindalko explained.
This demand relates to the GST payable by reverse surcharge on water bills paid to the state government. Hindalko plans to appeal the order. It asserts that there is a strong case on morality and law. The company emphasizes that it does not foresee any material impact to its financial, operating or other operations as a result of the order.
Hindalco announced strong financial performance for the quarter ended September 30, 2024, with net profit increasing 78% year-on-year to Rs 3,909 million. Revenue growth was driven by Strong performance in key business segments This includes Novelis, copper and aluminum operations. Notably, the aluminum upstream and downstream segments recorded revenue growth of 15% and 20%, respectively.
In the stock market, Hindalco shares closed marginally higher at ₹628.90 on BSE, underperforming the benchmark Sensex, which remained flat.
Stock Performance
Hindalco Industries Ltd.’s stock is currently trading at Rs. 617.40, it’s 52 weeks high has been 772.65- and 52-week low was 496.35 with market cap of 138,743 Crores. The fundamentals of the company look very strong there are no major reasons for the recent downfall. It’s the overall sentiment of the market trying the make a bearish trend. Stock is currently in the neutral range and a major accumulation is happening. The PE ratio is 10.64 and Price to Book Value 1.31, it denotes that company’s stock is not overvalued and trading in the fair range. It falls is good quality company basis long term financial performance.