Business

IIE Digital Desk : Hindalco Industries Ltd's consolidated net profit slumped 40% to Rs 2,411 crore in the first quarter of FY23, as the aluminium major was hit by unfavourable macro conditions and lower volumes. The company's revenue from operations rose 15% to Rs 41,261 crore in the quarter under review.

Hindalco said that the decline in net profit was primarily due to lower aluminium prices, which were down 17% year-on-year. The company also faced challenges due to higher input costs and a slowdown in demand. In the domestic market, Hindalco's aluminium business saw a decline in volumes due to lower demand from the automobile and construction sectors. The company's copper business also saw a decline in volumes due to lower demand from the electrical and electronics sectors.

However, Hindalco's packaging business performed well in the quarter, with volumes growing 10%. The company said that the growth in its packaging business was driven by strong demand from the e-commerce and food & beverage sectors. Looking ahead, Hindalco said that it expects the aluminium market to remain challenging in the near term. However, the company said that it is confident of its long-term growth prospects.