Hindalco investors can expect more gains in second half: Analysts

Rebounding aluminium, copper prices to drive earnings

With Hindalco’s US subsidiary Novelis reporting record profitability, the firm’s strong all-round domestic performance too impressed the Street. 

The operating performance was good despite consolidated net profit falling 60 per cent year-on-year (YoY), mainly due to one-offs. Significant rebound in the aluminium and copper segments’ profitability helped by better product mix, demand improvement and rising metal prices point towards a better second half for Hindalco. The improving per tonne profits and guidance will drive earnings.

The aluminium segment’s 25 per cent sequential growth in Ebitda outpaced revenue growth of 8 per cent. While aluminium prices on the London Metal Exchange (LME) recovered