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Hindalco inches up amid volatility as US subsidiary announces price hike

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Capital Market
Last Updated : Nov 05 2013 | 11:59 PM IST

Hindalco Industries rose 0.73% to Rs 116.85 at 13:09 IST on BSE after the company's US subsidiary Novelis on Monday, 4 November 2013, announced a price increase on its aluminum automotive sheet products in North America.

Meanwhile, the S&P BSE Sensex was down 135.27 points or 0.64% at 21,104.09.

On BSE, 4.81 lakh shares were traded in the counter as against average daily volume of lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 1.25% at the day's high of Rs 117.45 so far during the day. The stock lost as much as 1.2% at the day's low of Rs 114.60 so far during the day. The stock had hit a 52-week high of Rs 137 on 2 January 2013. The stock had hit a 52-week low of Rs 83.05 on 7 August 2013.

The stock had underperformed the market over the past one month till 3 November 2013, advancing 0.48% compared with the Sensex's 6.72% rise. The scrip had, however, outperformed the market in past one quarter, jumping 33.72% as against Sensex's 10.83% rise.

The large-cap company has equity capital of Rs 206.46 crore. Face value per share is Re 1.

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The price increase of $0.11 per pound for 6000-series, 5182-series and 5000-series automotive alloys will be effective for all new orders on or after 1 January 2014, Novelis said in a statement. Novelis fabrication pricing for specified volumes under current contracts will be honored throughout the contract period, the company said. The price increase is in addition to the previously announced pricing adjustment made on 23 April 2013. "This increase reflects the dynamics of the rapidly growing market for aluminum automotive sheet in North America. We officially commissioned our two new automotive sheet finishing lines in Oswego, NY, last month, which will increase our automotive capacity by 240,000 tons per year. That's five times our current automotive capacity in North America and an important milestone as we remain globally positioned to build on our supply and technology leadership in this important market," said Marco Palmieri, Senior Vice President and President, Novelis North America.

In addition to the Oswego expansion, a new automotive sheet finishing plant is under construction in Changzhou, China, which is expected to commence production in mid-2014 and will have a capacity of 120,000 tons. The company also recently certified automotive sheet production at its Gottingen, Germany plant that will ultimately add 40,000 tons of additional capacity. These new locations will join the company's existing automotive facilities in Kingston, Ontario, Canada; Sierre, Switzerland and Nachterstedt, Germany.

Novelis is the world's leading provider of aluminum automotive sheet, used for making structural components and exterior body panels.

Hindalco Industries will unveil Q2 September 2013 results on 12 November 2013. The company's net profit rose 11.6% to Rs 474.09 crore on 3.3% decline in net sales to Rs 5766.69 crore in Q1 June 2013 over Q1 June 2012.

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 the world's largest custom smelter at a single location.

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First Published: Nov 05 2013 | 1:07 PM IST

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