The best is yet to come for Hindalco

Improving prospects of Novelis and India business offer comfort

After Hindalco’s US subsidiary, Novelis, reported its best ever quarterly numbers and raised its FY18 Ebitda (earnings before interest, tax, depreciation and amortisation) guidance by $50 million, all eyes were on Hindalco’s domestic (standalone) performance.

Hindalco reported a better-than-expected operational performance in the September quarter (Q2), but the numbers fell short of estimates, thanks to one-off transactions. According to analysts, this shouldn’t put off investors, as the outlook for demand and pricing, both for the domestic business and Novelis, remains good.

Higher aluminium and copper realisations continued to support the revenues, and so did the aluminium volumes. Some of the gains were