InvestorQ : How did Hindalco manage to report such spectacular numbers in the Mar-21 quarter?
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How did Hindalco manage to report such spectacular numbers in the Mar-21 quarter?

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Juvina Maggie answered.
1 month ago
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Hindalco of the Aditya Birla group, reported consolidated net profits of Rs.1,928 crore for the Mar-21 quarter. This was largely triggered by strong performance by Novelis, including Aleris, and India Aluminium Business. The aluminium business gained from higher volumes, better product mix and robust prices. The India aluminium business alone contributed Rs.653 crore to the profit. Revenues were 38% higher at Rs.40,507 crore in the Q4.

The Q4 results actually strengthened the balance sheet of Hindalco and also effectively absorbed the Aleris acquisition. Additionally, the ratio of net debt to EBITDA has now been restored to the pre-Aleris acquisition levels, which takes away the solvency risk for the short to medium term. The board of Hindalco also recommended a dividend Rs 3 share for financial year 2021. The stock has been in the midst of a frenetic rally in last few months.

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