Hindalco tanks 15% post Novelis December quarter results

Novelis has significantly increased its planned capex spends for its green field expansion at Bay Minette plant from $2.7-2.8 billion to $4.1 billion.

Shares of Hindalco Industries tanked 15 per cent to Rs 497.50 on the National Stock Exchange (NSE) in Tuesday's intra-day trade on heavy volumes amid concerns of significant escalation in projected cost for Bay Minette plant. Analysts believe that this would result in lower IRR (Internal Rate of Return).

“Fiscal year-to-date 2024 capital expenditures total $960 million, reflects the planned increase in strategic investments in new rolling and recycling capacity under construction,” Novelis, a subsidiary of Hindalco Industries, said.

At 09:51 am; Hindalco was trading 14 per cent lower at Rs 502.10, as compared to 0.01 per cent decline in the Nifty