India's Hindalco Industries posted a record quarterly profit on Friday, with net profit jumping 59% as firmer aluminium and copper prices lifted earnings at one of the country's biggest metals producers.

Record profit on firm prices

The Aditya Birla Group-owned firm reported a 59% jump in consolidated net profit to ₹7,533 crore ($800 million) for the three months ended September 30, against ₹4,741 crore a year earlier — the highest quarterly profit in the company's history. Revenue from operations rose 39% to ₹91,708 crore, while earnings before interest, tax, depreciation and amortisation climbed 42% to ₹13,757 crore.

What drove the jump

Aluminium prices climbed about 23% year on year during the September quarter amid supply constraints in China and robust demand from clean energy and infrastructure, while copper prices were up about 44%, according to Jefferies data cited in coverage of the results. Revenue at Novelis, Hindalco's US subsidiary, grew 37% and contributes nearly 60% of the group's revenue. Managing director Satish Pai said the company had delivered a record profit despite high coal and CP coke prices, on the back of its integrated business model across upstream metals and downstream value-added products.

A warning on fuel costs

The results came with a caution on costs. Total expenses climbed 37% in the quarter, driven by a 38.5% jump in raw material costs, while fuel costs rose 14.5%. Pai said coal costs rose 5% in the September quarter and were expected to climb another 5% in the current quarter. The company expects aluminium prices to remain around their current level over the next two quarters.