Hindalco shares fall over 4% after Novelis' Q2 net income drops 23%

Shares of Aditya Birla Group-led Hindalco fell as much as 4.32% to Rs 418.60 in Wednesday’s intraday trade after Novelis Inc, its wholly-owned subsidiary, reported a 23% fall in net income to $183 million for the quarter ended September 30.

Novelis Inc had posted a net income of $237 million in the corresponding period of the previous fiscal, Hindalco said in a BSE filing.

However, the net sales of the company in the September quarter increased to $4,799 million from $4,119 million in the year-ago period, it said in a release.


Net income from continuing operations stood at $184 million, down 23% YoY, while net income from continuing operations excluding special items was $203 million, down 17% YoY, the company said in a release.

The adjusted EBITDA of the company stood at $506 million, down 8% YoY.

The company delivered a solid second quarter despite challenging headwinds from inflation, the stronger US dollar, and reduced metal benefits, with good operational performance that allowed it to capture robust end-market demand in the quarter and increase total shipments, Steve Fisher, President, and CEO, Novelis Inc, said.

"Although the current macro-economic environment is uncertain, we believe long-term demand for sustainable, lightweight, infinitely recyclable aluminium 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," he added.

At 10.22 am, the scrip was trading 4.25% lower at Rs 418.90 over its last day’s closing price of Rs 437.50.