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- 11 May 2023
- ICICI Securities
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HINDALCO’S WHOLLY OWNED SUBSIDIARY NOVELIS REPORTS STEADY OPERATIONAL PERFORMANCE
HINDALCO - 661 Change: 12.25 (1.89 %)News: For Q4FY23, Novelis net revenue declined 9% to $4.4 billion, primarily driven by lower average aluminum prices and a 5% decrease in total flat rolled product shipments, partially offset by increased product pricing and favorable product mix. Adjusted EBITDA declined 6% to US$403 million in Q4FY23, compared to US$431 million in the prior year period, driven by less favorable metal benefit from recycling, higher energy costs and other cost inflation, and lower volume, partially offset by higher product pricing and favorable product mix. Net income attributable to common shareholder fell 27% compared the prior year to US$ 156 million in Q4FY23 , due mainly to lower adjusted EBITDA, as well as higher restructuring, interest expense, and favourable metal price lag in the prior year that did not recur. Net income from continuing operations, excluding special items, decreased 7% as compared to the prior year to US$ 175 million.
Views: Hindalco’s wholly owned subsidiary Novelis reported a steady operational performance for Q4FY23. For the quarter, Novelis reported adjusted EBITDA of US$403 million, broadly in line with our estimate of US$404 million. For the quarter, Novelis reported adjusted EBITDA/tonne of US$431/tonne (our estimate US$ 425/tonne), while shipments for the quarter were at 936 KT (our estimate of 950 KT).
Impact: Neutral