Hindalco Tanks 7% Amidst Paris Gloom

24 Oct 2024 , 10:58 AM

Hindalco Industries’ stock dropped 7% to a day’s low of Rs 666.80 on the BSE on Thursday, making it the biggest loser in the Nifty this morning following the release of poor quarterly results by Constellium, a company that makes aluminium products in Paris.

Hindalco has little to learn from Constellium’s earnings report card, which revealed that its Q3 revenue decreased 5% year over year (YoY).

In addition to the steep losses in the majority of North American industrial sectors and the continued difficulty in European industrial and speciality industries, Constellium witnessed decreasing demand in both the North American and European automotive markets during the quarter.

“Our team faced significant challenges in the third quarter, including increased demand weakness across several of our end markets, and the ongoing impact from the flood that occurred back in late June at our facilities in the Valais region in Switzerland,” stated Jean-Marc Germain, our CEO.

According to CNBC TV-18, Hindalco’s subsidiary Novellis, which accounts for a larger percentage of the company’s EBITDA and 20% of its volumes, is negatively impacted by the demand outlook weakening in the automotive market.

Hindalco declared a consolidated net profit of Rs 3,074 crore for the quarter that ended on June 30, 2024. This represents a 25% increase over the Rs 2,454 crore the firm reported for the same time last year.

For feedback and suggestions, write to us at [e-mail]