Novelis EBITDA/tonne in Q3FY22 comes broadly in line with estimate

News: For Q3FY22, Hindalco’s wholly owned subsidiary Novelis reported adjusted EBITDA/tonne of US$544/tonne, broadly in line with our estimate of US$550/tonne (US$537/tonne in Q3FY21 and US$571/tonne). For Q3FY22, Novelis reported adjusted EBITDA of US$506 million compared to our estimate of US$522 million.

Views: During Q3FY22, Novelis' shipments was at 930 KT, marginally lower than our estimate of 950 KT (933 KT in Q3FY21 and 968 KT in Q2FY22). During the quarter, shipments were constrained by ongoing semi-conductor chip shortage, supply change bottlenecks and unplanned downtime. Miss on the EBITDA front was primarily on account of lower-than-expected shipments

Impact: Neutral