Hindalco drops 5% as arm Novelis Q2 profit slides 23% YoY; Ebitda down 8%

As per reports, Novelis has also lowered its capital expenditure (capex) outlook for FY23 to a range of $900 million- $1 billion from the previously guided $1.3-1.6 billion

Shares of Hindalco Industries dropped nearly 5 per cent in Wednesday’s intra-day trade, staging their steepest decline since late September after the company’s subsidiary Novelis Inc posted weak July-September results (Q2). 

Investors rushed to exit Hindalco’s counter after Novelis Inc posted a 23 per cent yearly decline in its net income (net profit) to $183 million for Q2.

As per reports, the US-based arm has also lowered its capital expenditure (capex) outlook for FY23 to a range of $900 million- $1 billion from the previously guided $1.3-1.6 billion. This has been done to pace the strategic capital expenditure. 

The company reportedly expects to