Hindalco Industries fell 4.69% to Rs 417 after the company's wholly-owned subsidiary, Novelis Inc, reported a 23% fall in net income to $183 million for the quarter ended 30 September 2022.
Novelis Inc had posted a net income of $237 million in the corresponding period of the previous fiscal.Net sales of the company increased 17% to $4.8 billion for the second quarter of fiscal year 2023, compared to $4.1 billion in the prior year period. This was primarily driven by a 2% increase in total flat rolled product shipments to 984 kilotonnes, increased product pricing, favorable mix and higher average aluminum prices.
Adjusted EBITDA decreased 8% to $506 million in the second quarter of fiscal year 2023, compared to $553 million in the prior year period, primarily due to higher energy and other operating costs driven by geopolitical instability, inflation, and global supply chain disruptions, as well as unfavorable foreign exchange translation. These headwinds were partially offset by higher product pricing, including some higher cost pass-through to customers, higher volume, and favorable product mix.
"We delivered a solid second quarter despite challenging headwinds from inflation, the stronger US dollar, and reduced metal benefits, with good operational performance that allowed us to capture robust end market demand in the quarter and increase total shipments," said Steve Fisher, President and CEO, Novelis Inc. "Although the current macro-economic environment is uncertain, we believe long-term demand for sustainable, lightweight, infinitely recyclable aluminum remains intact. We continue to progress our transformational investment strategy to grow with our customers, reaching an exciting milestone in the US with the ground-breaking of our new recycling and rolling plant in Alabama last month."
The company had a strong total liquidity position of $2.8 billion as of 30 September 2022.
Novelis Inc. is a leading global provider of sustainable aluminum solutions and the world leader in aluminum rolling and recycling.
Hindalco Industries is the metals flagship company of the Aditya Birla Group. It is the world's largest aluminium company by revenues, and a major player in copper. It is also one of Asia's largest producers of primary aluminium.
On a consolidated basis, Hindalco Industries' net profit surged to Rs 4,119 crore, a 48% growth YoY and 7% sequentially despite rising costs and inflationary pressures. Revenue for the first quarter stood at Rs 58,018 crore, up 40% YoY.
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