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News: Hindalco held an investor day to discuss business outlook and future growth plans. With respect to overseas business, the company indicated that Novelis targets to achieve EBITDA/tonne of US$ 525/tonne by Q4FY24
Views: With respect to Novelis, the company indicated that in terms of EBITDA/tonne it had hit a bottom in Q3FY23 and there would be sequential improvement in performance, going forward. While some headwind is likely to persist in FY24 in the form of volatile energy and other costs inflation, the company indicated that Novelis US$ 525/tonne EBITDA/tonne is achievable when headwinds subsides. In terms of specific timelines, Novelis plans to achieve EBITDA/tonne of US$ 525/tonne by Q4FY24 (Novelis reported EBITDA per tonne of US$ 376/tonne in Q3FY23). The company also indicated that it is pacing spend on growth capex for both Novelis as well as domestic operations
Impact: Neutral