Hindalco Industries reported a sharp decline in its third-quarter profit, even as its revenue showed healthy growth. The company’s consolidated net profit fell 45% year-on-year to ₹2,049 crore for the December quarter, mainly due to a large one-time expense.
The drop in earnings was caused by an exceptional charge of ₹2,610 crore linked to disruptions at its Oswego aluminium facility in the United States. The plant is operated by Hindalco’s subsidiary Novelis, which faced fire-related disruptions during the quarter. This significantly affected overall profitability.
Despite the fall in net profit, the company’s operational performance remained steady. Revenue from operations rose 14% year-on-year to ₹66,521 crore, supported by improved realisations and stable demand across its aluminium and copper businesses.
When adjusted for the one-time impact, Hindalco’s underlying profit before exceptional items actually increased compared to the same period last year, indicating resilience in its core business operations.
The India business continued to perform well, benefiting from better metal prices and cost efficiencies. The copper segment also contributed positively during the quarter.
The results reflect a mixed quarter for the metals major, strong revenue growth and stable core operations on one hand, but a significant one-off setback affecting reported profit on the other.