Hindalco shares gain as Novelis hikes products prices

MUMBAI: Shares of Hindalco gained momentum in early trade after its subsidiary Novelis raised prices of all of its automotive aluminium sheet products in Europe.

At 09:24 a.m.; Hindalco was at Rs 100.95, up 2.85 per cent, on the BSE. It touched a high of Rs 102.90 and a low of Rs 99.70 in trade today.

According to reports, Novelis announced a price increase of 160 euros per ton for all of its automotive aluminium sheet products in Europe. The price change is effective immediately for all new orders not covered by current supply agreements.

"The price increase announced today reflects the strong demand for our automotive sheet products, which has resulted in a prevailing tight supply situation," Roland Harings, Vice President, Novelis' global automotive business, said in a statement.

Meanwhile, Bank of America Merrill Lynch expects Hindalco's net profit for the Q1FY13 to decline 12 per cent Q-o-Q.

"We forecast EBIDTA to decline 5.3 per cent Q-o-Q and profit to decline by 12 per cent QoQ in 1QFY14 led by lower aluminum and Cu TCRC profit. In aluminum, we expect volume to decline 6 per cent Q-o-Q due to disruptions at Hirakud unit due to heavy rains. Also, aluminum LME declined 8 per cent Q-o-Q in June Q. In copper smelting, we expect volume to decline 5 per cent QoQ due to maintenance shutdown," the report said.