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regular-article-logo Tuesday, 16 July 2024

Hindalco Industries posts decline over 40 per cent in net profit at Rs 2,454 crore

The AVB group company’s total income also declined to Rs 53,382 crore from Rs 58,229 crore in the year-ago period

Our Bureau Mumbai Published 09.08.23, 10:58 AM
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Representational image File picture

Hindalco Industries on Tuesday posted an over 40 per cent fall in its net profit at Rs 2,454 crore for the quarter ended June 30, dragged down by lower income. It had clocked a net profit of Rs 4,119 crore in the April-June period of 2022-23, according to an exchange filing.

The AVB group company’s total income also declined to Rs 53,382 crore from Rs 58,229 crore in the year-ago period.

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Expenses were at Rs 50,055 crore against Rs 52,185 crore a year ago.

In a separate statement, Satish Pai, managing director of Hindalco Industries, said, “FY24 has started on a promising note. Our focus on expanding our value-added portfolio and operational efficiencies have enabled us to deliver a sustained performance in the face of continued macroeconomic pressures.”

He further said that despite significant market headwinds, Novelis has continued to show sequential improvement in adjusted EBITDA at $421 million and at $479 EBITDA per tonne, backed by record sales of automotive aluminium sheets.

Revenue of Novelis, Hindalco’s Atlanta-based subsidiary, stood at $4.1 billion, down 7 per cent quarter-on-quarter, impacted by lower average aluminium prices and subdued shipments, the company statement said.

Svatantra Microfin

Svatantra Microfin Pvt Ltd (Svatantra), the microlender founded by Kumar Mangalam Birla’s eldest daughter Ananya Birla, is acquiring Chaitanya India Fin Credit Pvt Ltd (Chaitanya), a wholly-owned subsidiary of Navi Group (Navi), for Rs 1,479 crore.

The transaction will see Svatantra becoming India’s second largest microfinance firm. Subject to the receipt of regulatory approvals and customary closing adjustments, the deal is expected to be completed by the end of 2023.

Post acquisition, Svatantra will have a reach of more than 3.6 million active customers through 1,517 branches across 20 states and combined assets under management (AUM) of Rs 12,409 crore as on March 31, 2023.

Birla had founded Svatantra at the age of 17 and the lender started its operations in March 2013. According to the company, it has since then emerged as the most differentiated process and technology-driven microfinance entity, offering microcredit at affordable rates in the country.

Svatantra currently has a team of more than 7,000 employees serving over 2.2 million rural customers across 19 states with an AUM of Rs 7,499 crore.

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