Hindalco Industries is set to announce its Q4FY25 earnings on Tuesday, with expectations of a net profit growth ranging between 25%-55% according to estimates from four brokerages. The company’s revenue is expected to increase by 4%-12%, resulting in a topline of between Rs 58,278 crore and Rs 62,960 crore. The growth is attributed to higher aluminium and alumina prices.
Brokerages such as Axis Securities, Nuvama Institutional Equities, Yes Securities, and ICICI Securities have provided estimates, with Nuvama being the most bullish and Yes being the most conservative. Axis Securities expects the company’s PAT to rise 29% YoY to Rs 4,098 crore, while Nuvama estimates a 55% YoY growth to Rs 5,520 crore.
The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) is expected to rise, with estimates ranging from Rs 7,985 crore to Rs 9,110 crore. Novelis, Hindalco’s US-based subsidiary, is expected to report EBITDA per tonne at $480, reflecting a decline of 11.2% YoY, but a strong 18.3% QoQ recovery.
The average LME Aluminium prices have increased by 19% YoY and 2% QoQ, while average Alumina prices stood robust at $523/t, but have cooled off QoQ. The brokerages have also provided recommendations, with Yes Securities having a buy recommendation for a target price of Rs 732 and ICICI Securities having a buy view for a price target of Rs 765.
The estimates and recommendations are as follows:
* Axis Securities: PAT of Rs 4,098 crore, revenue of Rs 62,960 crore, and EBITDA of Rs 7,985 crore.
* Nuvama Institutional Equities: PAT of Rs 5,520 crore, revenue of Rs 62,060 crore, and EBITDA of Rs 9,110 crore.
* Yes Securities: PAT of Rs 3,956 crore, revenue of Rs 58,278 crore, and EBITDA of Rs 75,200 crore.
* ICICI Securities: PAT of Rs 4,167 crore, revenue of Rs 61,046 crore, and EBITDA of Rs 8,178 crore.
Overall, the estimates and recommendations suggest that Hindalco Industries is expected to report a strong performance for the quarter, driven by higher aluminium and alumina prices. The company’s revenue and EBITDA are expected to increase, with varying estimates from different brokerages.