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Hindalco shines as Novelis reports good earnings

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Last Updated : May 15 2013 | 10:30 AM IST

Meanwhile, the S&P BSE Sensex was up 202.15 points or 1.02% at 19,924.44.

On BSE, 76,303 shares were traded in the counter as against average daily volume of 10.55 lakh shares in the past one quarter.

The stock hit a high of Rs 107.70 and a low of Rs 106.50 so far during the day. The stock had hit a 52-week low of Rs 86.90 on 26 March 2013. The stock had hit a 52-week high of Rs 137 on 2 January 2013.

The stock had outperformed the market over the past one month till 14 May 2013, rising 15.13% compared with the Sensex's 8.11% gain. The scrip, however, underperformed the market in past one quarter, falling 4.62% as against Sensex's 1.15% rise.

The large-cap company has equity capital of Rs 191.45 crore. Face value per share is Re 1.

Hindalco Industries' subsidiary Novelis on Tuesday, 14 May 2013 reported net income attributable to its common shareholder of $202 million for fiscal 2013. Excluding tax-effected certain items, net income for fiscal 2013 was $241 million, compared to a net income of $218 million for fiscal 2012. Net income for the fourth quarter of fiscal 2013, excluding tax-effected certain items, was $80 million, representing a $55 million increase when compared to the same period in the prior year. Novelis is the global leader in aluminum rolled products and the world's largest recycler of aluminum.

Net sales for fiscal 2013 were $9.8 billion, an 11% decrease compared to the $11.1 billion reported in the same period a year ago. This decline was due to lower average aluminum prices and lower shipments when compared to last year. For the fourth quarter, sales were $2.5 billion compared to $2.6 billion reported for the fourth quarter of fiscal 2012.

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Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) for fiscal 2013 was $961 million, compared to $1,053 million reported for the same period in 2012. The year-over-year decrease was mostly due to disruptions related to the ERP implementation in two North American plants in the third quarter, pricing pressures in several operating regions, lower average aluminum prices, an impact from a fire at a North American plant in the fourth quarter and higher pension expense. Adjusted EBITDA for the fourth quarter of fiscal 2013 was $240 million, representing a 3% increase when compared to the $233 million reported for the same period a year ago, due primarily to stronger demand and good cost control. Adjusted EBITDA for fiscal 2013 was $961 million, compared to $1,053 million reported for the same period in 2012. The year-over-year decrease was mostly due to disruptions related to the ERP implementation in two North American plants in the third quarter, pricing pressures in several operating regions, lower average aluminum prices, an impact from a fire at a North American plant in the fourth quarter and higher pension expense. Adjusted EBITDA for the fourth quarter of fiscal 2013 was $240 million, representing a 3 percent increase when compared to the $233 million reported for the same period a year ago, due primarily to stronger demand and good cost control.

Shipments of aluminum rolled products totaled 2,786 kilotonnes for fiscal 2013, down slightly compared to shipments of 2,838 kilotonnes for the same period last year due mostly to the sale of the company's three foil plants in Europe and production disruptions in North America. Shipments of aluminum rolled products totaled 698 kilotonnes for the fourth quarter of fiscal 2013, essentially flat compared to shipments of 703 kilotonnes for the same period last year.

"As expected, we saw a sequential recovery from our seasonally low third quarter, with EBITDA increasing 30%," commented Phil Martens, Novelis President and Chief Executive Officer, "driven by strong demand, good cost control and higher operating efficiencies. And despite multiple unexpected headwinds in the second half of the fiscal year, as a result of prudent actions and fiscal discipline, the Company was able to achieve EBITDA of nearly $1 billion for the year. This was accomplished while commissioning two large-scale expansions, closing or divesting underperforming and non-core assets and making good progress on several ongoing global rolling, finishing and recycling expansions. I am proud of our accomplishments this year as we produced solid results in a transformational year marked by heavy investment."

Hindalco Industries unveils FY13 results on 28 May 2013. The company's net profit declined 3.8% to Rs 433.52 crore on 3% growth in net sales to Rs 6789.90 crore in Q3 December 2012 over Q3 December 2011.

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: May 15 2013 | 9:58 AM IST

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