Near-term profit woes for Hindalco's India biz amid high energy costs

Margin recovery expected in the second half of FY23

Consolidated results of Hindalco beat Street expectations in the June quarter for the 2022-23 financial year (Q1FY23), reporting an operating profit of Rs  8,640 crore, up 27 per cent year-on-year (YoY) and 13 per cent on a sequential basis. The profit after tax from continuing operations was up 26 per cent, to Rs 4,119 crore (6.7 per cent higher quarter-on-quarter or QoQ). Net sales were up 4 per cent on a sequential basis while they were 40 per cent YoY, at Rs 58,018 crore.

Lower than expected costs in aluminium operations and strong by-product realisations in the copper division led