Hindalco-led Novelis’ Q1 net sales jump 2% to $4.2 Billion

8 Aug 2024 , 11:12 AM

On Wednesday (August 7), Hindalco Industries Ltd’s subsidiary Novelis Inc announced that its net sales for the first quarter grew 2% year on year (YoY) to $4.2 Billion, owing mostly to higher average aluminium prices and greater total shipments.

Total flat rolled product exports grew 8% to 951 kilotonnes in the first quarter compared to the same period last year, owing principally to normalised demand for beverage packaging sheets against the previous fiscal year, which had been impacted by customer inventory reduction activity.

The net income attributable to common shareholders fell 3% to $151 Million in the first quarter of the fiscal year, owing to initial charges associated with flooding at the company’s Sierre, Switzerland, plant at the end of June, as well as higher restructuring and unfavourable metal price lag, which were largely offset by higher adjusted EBITDA, according to the company.

Net income attributable to Novelis Inc’s common shareholders, excluding extraordinary items, increased 32% YoY to $204 Million. In the first quarter of fiscal year 2025, adjusted EBITDA climbed 19% to $500 Million from the previous year, owing principally to higher volume and favourable product pricing, which were somewhat offset by a less favourable product mix and higher costs. Adjusted EBITDA per tonne increased by 10% YoY to $525.

Net cash flow from operating activities was $74 Million in the first three months of the fiscal year 2025, compared to an outflow of $32 Million in the same period the previous year, owing principally to higher adjusted EBITDA and favourable adjustments in working capital.

Total capital expenditure was $348 Million in the first three months of fiscal year 2025, owing mostly to strategic investments in new rolling and recycling capacity under construction. On June 30, 2024, the company had a net leverage ratio of 2.4x (net debt divided by trailing twelve months (TTM) adjusted EBITDA).

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