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Informist, Monday, Feb. 10, 2025

--Hindalco arm Novelis Oct-Dec net income $110 mln vs $121 mln year ago 

--Hindalco arm Novelis Oct-Dec net sales $4.08 bln vs $3.94 bln year ago 

--Hindalco arm Novelis Oct-Dec adjusted EBITDA $367 mln, down 19% on year 

--Hindalco arm Novelis Oct-Dec adjusted EBITDA/tn $406, down 19% on year 

--Hindalco arm Novelis Oct-Dec rolled pdt shipments 904,000 tn, dn 1% on yr 

MUMBAI – Higher aluminum scrap prices and an unfavorable product mix dragged down the net income of Hindalco Industries Ltd.'s US subsidiary Novelis Inc. for the December quarter. The company's top line, however, rose due to higher average aluminum prices.

Novelis reported a fall of 9% on year in net income for the December quarter at $110 million. However, the net income, after excluding special items, was $119 million, down 32% on year. The net sales of the company for the quarter were $4.08 billion, up 3.6% on year, and the volume of shipments of rolled products was 904,000 tonnes, down 1% on year. Continued strong demand for beverage packaging sheet was offset by lower automotive and specialty shipments, Novelis said.

The company's adjusted earnings before interest, tax, depreciation, and amortisation declined 19% on year to $367 million. The adjusted EBITDA per tonne for the December quarter was $406, down 19% on year.

For the nine months ended December, the company's net cash flow provided by operating activities was $263 million, down 37% on year, primarily due to lower net income and unfavorable changes in working capital. For the same period, adjusted free cash flow was an outflow of $915 million, up 77% on year due to higher capital expenditure and lower cash flow from operating activities, Novelis said.

Its capital expenditure during Apr-Dec was $1.2 billion, up 22% on year, primarily attributed to strategic investments in new rolling and recycling capacity under construction, most notably in the US for its Bay Minette project. The company expects commissioning of the project to begin in the second half of 2026. 

As of Dec. 31, Novelis had a total liquidity position of $1.6 billion – $791 million in cash and cash equivalents and $790 million in availability under committed credit facilities. The company's capital expenditure in 2024-25 (Apr-Mar) is expected to be in the range of $1.8 billion-$2.1 billion. 

Novelis reported its December quarter results after market hours. On Monday, shares of its parent Hindalco Industries ended at INR 596 on the National Stock Exchange, down 1.9%.  End

US$1 = INR 87.47

Reported by Akshita Kumar

Edited by Avishek Dutta

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