
Hindalco Industries shares were up 3% at INR 172 on BSE, trading at its highest level since December 2014(23 months high), after the company’s subsidiary Novelis reported adjusted EBITDA of $270 million in comparison to $182 million in the same period of 2015. Excluding metal price lag in both periods, this recorded a growth of 14%. At 9.50am on Tuesday, the stock was trading at Rs172 on the BSE, up 2.5% from its previous close. Notably, on Tuesday November 8 Hindalco Industries Ltd became the first Nifty index company in 2016 to gain over 100% so far this year.
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On Saturday, November 12, 2016, the board of directors of the company is expected to meet to consider the unaudited financial results of the company, for Q2FY17.
According to Motilal Oswal Securities forecast, “Hindalco’s consolidated EBITDA is estimated to increase 4% QoQ to INR 3,100 crore, led by Novelis as well as improved performance in copper division.
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Antique Stock Broking forecasts the company’s standalone revenues to improve by 3.3% YoY with higher aluminium volumes slightly offset by lower aluminium and copper prices.
According to a Bloomberg forecast, the company is expected to post a net profit of INR 367.50 crore.
Despite slow performance in the can sheet segment, Novelis is able to maintain its quarterly EBITDA due to support from the automotive division.
Commenting on Hindalco’s performance, brokerage Motilal Oswal said, “Indian business will benefit from strong LME (pushed up by rally in coal and alumina prices) and visibility of cost due to domestic supply of coal and captive bauxite/alumina.”
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