Tag AdityaBirla Group

Hindalco
Hindalco Q3 Results: 60% Profit Surge to ₹3,735 Cr, Revenue at ₹58,899 Cr

Business and Industry Overview: 

Hindalco Industries is the metals flagship company of the Aditya Birla Group, valued at USD 28 billion, and is a leader in the aluminum and copper industries. In April 2020, the company strengthened its position as the world’s largest player in flat-rolled aluminum products by acquiring Aleris Corporation through its subsidiary, Novelis Inc. 

Hindalco operates a state-of-the-art copper facility, which features one of Asia’s largest custom copper smelters. In India, its aluminum operations encompass bauxite mining, alumina refining, copper production, and various downstream processes. The company ranks among the global aluminum majors and has a presence in nine countries. 

The Birla Copper unit is India’s largest private gold producer, manufacturing copper cathodes and various by-products. Hindalco holds Star Trading House status in India, and its aluminum and copper products are recognized on the London Metal Exchange. 

The aluminum industry in India is strategically positioned and is one of the largest producers globally, with clear growth plans and promising prospects for the future. India’s abundant bauxite mineral resources provide a competitive advantage to the industry compared to its global counterparts. As of September 2019, Hindalco’s domestic aluminum capacity was approximately 1.3 million tonnes, which accounted for nearly 40% of India’s total aluminum production. 

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Hindalco Industries has reported a significant increase in its Q3 profits, with a 60% rise, bringing the net profit to Rs 3,735 crore for the December quarter. This is up from Rs 2,331 crore during the same period in the previous financial year (2023-24). The company’s total income also rose, reaching Rs 58,899 crore, compared to Rs 53,088 crore in the previous year.  

In addition to its strong financial performance, Hindalco announced the appointment of Bharat Goenka, currently the CFO-Designate, as the Chief Financial Officer, effective April 1, 2025. 

Due to ongoing geopolitical tensions and President Trump’s tariffs on imports, Satish Pai, Managing Director of Hindalco, said in an interview with Moneycontrol on February 14 that the company expects a neutral to positive impact on its US business. This follows the 25% tariff on all steel and aluminum imports into the United States. 

Segmental information: 

Hindlco has 2 major business segments. 

  1. Aluminum: In the Aluminium Business, Hindalco is a leading integrated producer with both upstream and downstream operations. Upstream operations include bauxite mining, which involves extracting raw materials; alumina refining, where bauxite is processed into alumina; and primary aluminum production, which smelts the alumina into ingots, billets, and wire rods. The downstream products consist of rolled products used in automotive, packaging, construction, and aerospace industries, extrusions for building and transportation, and foils and packaging products, including Freshwrapp and industrial foils. 
  1. Copper: In the Copper Business, Hindalco is India’s largest producer, operating an integrated smelting and refining facility. This segment focuses on producing copper cathodes for wiring and machinery, as well as continuous cast copper rods essential for power transmission. Additionally, valuable by-products such as sulfuric and phosphoric acids are produced for fertilizers and chemicals, along with gold and silver extracted during the smelting process. 

Subsidiary Information:  

  1. Utkal Alumina International Limited 
  1. Minerals & Minerals Limited 
  1. Suvas Holdings Limited. 
  1. Dahej Harbour & Infrastructure Limited 
  1. Hindalco Almex Aerospace Limited 
  1. East Coast Bauxite Mining Company Private Limited 
  1. Renuka Investments & Finance Limited 
  1. Renukeshwar Investments & Finance Limited 
  1. Lucknow Finance Company Limited 
  1. Utkal Alumina Social Welfare Foundation 
  1. Kosala Livelihood and Social Foundation 
  1. Birla Copper Asoj Private Limited 

Q3 Highlights: 

  •  Hindalco Industries reported a significant increase in Q3 profits, with a 60% rise. 
  • Net profit for the December quarter reached Rs 3,735 crore, up from Rs 2,331 crore in the same period of the previous financial year (2023-24). 
  • Total income rose to Rs 58,390 crore, compared to Rs 52,088 crore in the previous year. 
  •  Bharat Goenka, currently the CFO-Designate, has been appointed as the Chief Financial Officer, effective April 1, 2025. 

Financial Summary: 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 52,808.00 58,390.00 223,202 215,962 
Expenses 46,943.00 50,807 200,536 192,090 
EBITDA 5,865.00 7,583 22,666.00 23,872.00 
OPM 11% 13% 10% 11% 
Other Income 281 469 1,307 1,519 
Net Profit 2,331.00 3,735.00 10,097 10,155 
NPM 4.41 6.40  4.70 
EPS 10.37 16.62 44.93 45.19 
Ambuja Cement and UltraTech Q3 FY25 Results
Q3 FY25 Results: Ambuja Cement Profit Surges 157% YoY to ₹2,115 Cr, UltraTech Profit Falls 17% to ₹1,470 Cr; Revenue Growth Continues

Ambuja Cements Ltd: Overview 

Ambuja Cements Ltd, a part of the Adani Group, is one of India’s leading cement manufacturers, known for its strong market presence and commitment to sustainable development. The company operates through an extensive network of integrated cement plants, grinding units, and a robust distribution system that spans across the country. Ambuja specializes in producing high-quality cement products, including Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC), catering to a wide range of construction needs in residential, commercial, and infrastructure projects. With a focus on operational efficiency, cost optimization, and sustainable practices, Ambuja Cements has adopted advanced manufacturing technologies, waste heat recovery systems, and renewable energy initiatives to enhance its production capabilities and reduce carbon emissions. Additionally, the company benefits from its strong brand recognition, extensive dealer network, and continuous investments in research and development, positioning itself as a key player in the competitive cement industry. The Indian cement industry is poised for strong growth, driven by increasing infrastructure development, housing demand, and government initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and Smart Cities Mission. The sector is expected to benefit from large-scale investments in roads, highways, metros, and rural development projects. The growing emphasis on sustainability and green cement production is also reshaping the industry, with companies investing in alternative fuels, energy-efficient technologies, and carbon reduction strategies. While the industry faces challenges such as rising input costs, supply chain disruptions, and environmental regulations, demand remains robust due to strong economic growth, rapid urbanization, and continued policy support from the government. 

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In Q3 FY25, the company achieved the highest percentage of trade sales among peers at 71%, primarily catering to the profitable Individual House Builder (IHB) segment. Premium cement contributed 26% of trade sales during the quarter, positioning the company among the industry leaders in this segment. Since the Adani acquisition from Holcim in September 2022, cost reductions have amounted to 17%, significantly improving operational efficiency. The sanctioning of additional houses under the Pradhan Mantri Awas Yojana has led to increased demand in Q3, with further improvement expected in Q4 FY25. The office market is experiencing robust growth, with leasing space projected to expand by 8% to 10%, driven by the rapid development of Global Capability Centers. Additionally, India’s data center industry is witnessing exponential growth, fueled by advancements in AI and the nationwide rollout of 5G technology, with capacity expected to grow by 66% by 2026. Government capital expenditure on infrastructure, which accounts for 25-30% of cement demand, is anticipated to accelerate in the second half of FY25. In Q3 FY25, the company added 631 million metric tonnes of new limestone reserves, bringing the total reserves to approximately 8,300 million metric tonnes. Freight and forwarding costs were reduced by 15%, primarily due to network optimization, which resulted in a 7% reduction in primary lead distance and a 17% reduction in secondary lead distance. 

Q3 FY25 Earnings 

  • Revenue of ₹9329 crore in Q3 FY25 up by 14.8% YoY from ₹8129 crore in Q3 FY24.  
  • EBITDA of ₹1712 crore in this quarter at a margin of 18% compared to 21% in Q3 FY24. 
  • Profit of ₹2620 crore in this quarter compared to a ₹1091 crore profit in Q3 FY24. 

UltraTech Cements Ltd: Overview 

UltraTech Cement Ltd, a subsidiary of the Aditya Birla Group, is India’s largest cement manufacturer and a dominant player in the global cement industry. With an extensive production capacity of over 140 million tonnes per annum (MTPA), UltraTech is known for its wide product portfolio, which includes Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Ready-Mix Concrete (RMC), white cement, and specialty building products. The company has a strong presence across India, the Middle East, and other international markets, supported by its integrated cement plants, clinkerization units, and grinding stations. UltraTech’s growth strategy is driven by continuous capacity expansion, efficiency improvement, and sustainability initiatives, including the use of renewable energy, alternative raw materials, and carbon capture technologies. The company has also been actively acquiring assets to strengthen its market leadership, including the integration of assets from Jaypee Cement and Binani Cement. UltraTech’s financial strength, operational excellence, and commitment to innovation make it a formidable force in the cement industry. The Indian cement industry is expected to witness steady growth, supported by rising infrastructure investments, increased urbanization, and favourable government policies. The demand for cement is projected to rise due to massive public and private sector investments in roads, railways, ports, and urban housing projects. Additionally, the real estate sector’s recovery, coupled with rising per capita cement consumption, is expected to boost the industry’s long-term prospects. However, the sector faces challenges such as rising costs of raw materials, energy, and logistics, which could impact profitability. The industry is also undergoing a transformation with increased emphasis on sustainability, digitalization, and advanced manufacturing processes to improve efficiency and reduce carbon footprints. UltraTech Cement, with its scale, strong distribution network, and technological advancements, is well-positioned to leverage these trends and maintain its leadership position in the cement market. 

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The infrastructure segment experienced a decline due to pollution control measures implemented in Delhi and nearby regions, as well as project delays caused by the farmers’ agitation in Punjab. Additionally, the average lead distance reduced to 377 km in Q3 FY25 compared to 397 km in Q3 FY24. The housing segment, on the other hand, registered growth across most regions, except in Prayagraj, where restrictions on heavy vehicle movement due to Kumbh Mela preparations impacted demand. In Maharashtra, the infrastructure sector witnessed a slowdown due to lower fund flows attributed to the state assembly elections, while in Gujarat, housing demand remained largely flat. UltraTech Cement made a strategic investment by acquiring a non-controlling financial stake of 8.42% in Star Cement Limited at a total cost of ₹776 crore. The clinker conversion ratio improved to 1.45 in Q3 FY25, compared to 1.43 in the same quarter of the previous year, reflecting enhanced efficiency in cement production. Additionally, the share of green power in the overall energy mix increased to 33.4% in Q3 FY25, up from 32.0% in Q2 FY25. Additionally, the company signed an agreement to deploy approximately 100 electric trucks to transport 75,000 metric tonnes of clinker monthly from its Dhar Cement Works in Madhya Pradesh to Dhule Cement Works in Maharashtra, covering a 400 km round trip. Realizations declined by 9.6% year-on-year but showed a slight improvement of 1.4% on a quarter-on-quarter basis. 

Q3 FY25 Earnings 

  • Revenue of ₹17193 crore in Q3 FY25 up by 2.17% YoY from ₹16740 crore in Q3 FY24.  
  • EBITDA of ₹2886 crore in this quarter at a margin of 17% compared to 19% in Q3 FY24. 
  • Profit of ₹1474 crore in this quarter compared to a ₹1775 crore profit in Q3 FY24.