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Hindalco gains as Novelis declares strong Q4 results

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Capital Market
Last Updated : May 11 2016 | 5:47 PM IST

Hindalco Industries rose 2% to Rs 91.65 at 15:19 IST on BSE after the company's subsidiary Novelis reported 35% rise in net income excluding tax-effected special items to $50 million in Q4 March 2016 over Q4 March 2015.

Novelis declared the results yesterday, 10 May 2016.

Meanwhile, the BSE Sensex was down 181.89 points, or 0.71%, to 25,590.64

On BSE, so far 16.34 lakh shares were traded in the counter, compared with an average volume of 15.32 lakh shares in the past one quarter. The stock hit high of Rs 92.80 and low of Rs 88.20 so far during the day. The stock hit a 52-week high of Rs 145 on 11 May 2015. The stock hit a 52-week low of Rs 58.85 on 12 February 2016. The stock had underperformed the market over the past one month till 10 May 2016, rising 2.28% compared with 4.45% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 34.10% as against Sensex's 8.48% rise.

The large-cap company has an equity capital of Rs 206.50 crore. Face value per share is Re 1.

Novelis' revenue decreased 14% to $2.4 billion in Q4 March 2016 over Q4 March 2015 as a result of lower average aluminum prices and local market premiums. Excluding the impact of metal price lag, adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) rose 29% to was $277 million in Q4 March 2016 over Q4 March 2015. The increase was a result of record global shipments in a seasonally strong quarter, as well as positive product mix primarily driven by a 23% increase in automotive shipments over the prior year, Novelis said. The EBITDA improvement was also driven by excellent operational performance and favorable currency effects, it added.

Steve Fisher, President and Chief Executive Officer for Novelis said that heading into fiscal year ending 31 March 2017, the company remains focused on driving asset efficiency as well as managing costs and working capital. In addition, the company will continue to strengthen its product portfolio through further growth in the premium automotive sheet segment while continuing to deliver quality products and service to all customers, Steve Fisher said.

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Hindalco Industries will declare its Q4 March 2016 results on 28 May 2016. The company's net profit fell 88.7% to Rs 40.46 crore on 5.3% decline in net sales to Rs 8021.23 crore in Q3 December 2015 over Q3 December 2014.

A part of the Aditya Birla Group, Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is amongst the largest single location custom smelter globally.

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First Published: May 11 2016 | 3:44 PM IST

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