Tag Copper Industry

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. 

Latest Stock News: 

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 
Hindustan Copper
Hindustan Copper Q3 Results: Net Profit Drops to ₹62.9 Crore, Revenue Declines 16% YoY

Business and Industry Overview: 

Hindustan Copper Ltd. is a central public sector undertaking under the ownership of the Ministry of Mines, Government of India. It was incorporated on 9th November 1967 under the Companies Act., 1956. It was established as a Govt. of India Enterprise to take over all plants, projects, schemes, and studies about the exploration and exploitation of copper deposits from National Mineral Development Corporation Ltd. It is the only company in India engaged in the mining of copper ore and owns all the operating mining leases of copper ore. It is also the only integrated producer of refined copper (vertically integrated company). 

The Company has the facility for the production & marketing of copper concentrate, copper cathodes, continuous cast copper rods, and by-products, such as anode slime (containing gold, silver, etc.), copper sulphate, and sulphuric acid. Presently, the company is focusing on mining & beneficiation operations and is primarily selling copper concentrate as the main product. HCL’s mines and plants are spread across five operating Units, in Rajasthan, Madhya Pradesh, Jharkhand, Maharashtra, and ujarat These are : Malanjkhandd Copper Project (MCP) at Malanjkhand, Madhya Pradesh, Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan, Indian Copper Complex (ICC) at Ghatsila, Jharkhand, Taloja Copper Project (TCP) at Taloja, Maharashtra & Gujarat Copper Project (GCP) at Jhagadia, Gujarat.  

Hindustan Copper Limited (HCL) was the sole producer of refined copper till 1995 and the focus was on vertical integration so that the entire quantity of ore produced in its mines was converted into copper cathode and ultimately, wire rod. After the economy’s liberalization, the industry’s copper segment has transformed significantly. Currently, three major players dominate the Indian copper industry. Hindustan Copper Limited (HCL) in the Public Sector, Hindalco Industries Ltd, and Vedanta in the private sector.  

HCL is the only producer of copper ore in the country. Copper ore production of HCL during the last few years is in the range of 4.0 million tonnes per annum (Mtpa) which is equivalent to 4.5% of the country’s requirement in terms of copper metal. HCL owns all the operating mining leases in the country, mine expansion is underway, and significant mining capacity expansion is to be achieved from 4.0 Mtpa to 12.2 Mtpa in Phase I by FY 2028-29 and thereafter from 12.2 

Latest Stock News: 

As per the Q3 results. Net profit of the company falls marginally to ₹62.9 crore, and revenue is down 16% YoY. Total income fell nearly 16% to ₹343.57 crore compared to ₹409.24 crore in the previous year. Meanwhile, the PSU’s EBITDA margin improved by 612 bps in the latest quarter. The revenue for the quarter under review stood at Rs 328 crore, against Rs 399 crore in Q3FY24. EBITDA for the quarter stood at Rs 108 crore, up 0.9% against Rs 107 crore achieved in the quarter a year ago. Along with the quarterly results, the Hindustan Copper Board appointed Mritunjay Kumar Dev, Senior Manager as the Company Secretary and Compliance Officer after the expiry of the tenure C S Singhi from April 3, 2025, onwards. 

Segmental information

Digging and Sorting: HCL has several big copper mines across India. They dig up the rock that contains copper (called ore) and then process it to get a more concentrated form of copper. Think of it like separating the good stuff from the dirt. 
 

Melting and Cleaning: They then melt this concentrated copper and clean it up to make pure copper. This pure copper is often in the form of “copper cathodes,” which are like building blocks for other copper products. 
 

Making Copper Stuff: HCL uses this pure copper to make various things like: 

  • Copper cathodes (the pure copper blocks) 
  • Copper rods (used in electrical wiring) 
  • Copper wires 
  • Copper sulphate (used in agriculture and other industries) 
  • Other By Products 

Getting Other Valuable Things: When they’re digging up the copper, they also find other valuable materials like gold, silver, and other metals. They extract these too, which adds to their income. 

Subsidiary Information

  1. Khetri Copper Complex (KCC) in Rajasthan: It is a underground mine where they dig up copper ore, turn it into concentrated copper, and then melt and purify it into copper cathodes. 
     
  1. Malanjkhand Copper Project (MCP) in Madhya Pradesh: This is the biggest open-pit copper mine in India. They dig up a lot of copper concentrate here, which they then send to other HCL locations to be refined. They’re also planning to start more underground mining here. 
     
  1. Indian Copper Complex (ICC) in Jharkhand: It is a mining site where it melts and purifies copper. They make copper cathodes, rods (for wiring), and other things like sulfuric acid as byproducts. 
     
  1. Taloja Copper Project (TCP) in Maharashtra: This place focuses on making copper wire rods, which are used in electrical and industrial stuff. 
     

Q3 Highlights

  • Net profit of ₹62.9 crore for the December quarter, a slight decline of 0.15% from ₹63 crore last year.  
  • Total income fell nearly 16% to ₹343.57 crore compared to ₹409.24 crore in the previous year. 
  • Earnings per share (EPS) for Hindustan Copper stood at ₹0.65 for Q3. 

Financial Summary

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 399.00 328.00 1,677 1,717 
Expenses 293 220 1,185 1,170 
EBITDA 107 108 588.00 603.00 
OPM 27% 33% 29% 32% 
Other Income 10 16 96 55 
Net Profit 63.00 63.00 295 295 
NPM 15.79 19.21 17.59 17.18 
EPS 0.65 0.65 3.06 3.05 
Hindalco Industries ltd
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.