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Novelis reports weak Q1 earnings
Edited by : AL CIRCLE
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Hindalco Industries fell 3.20% to INR 90.75 at 10:58 IST on BSE after the company's subsidiary Novelis reported weak Q1 earnings on Monday, 12 August 2013.
The large -cap company has an equity capital of INR 191.45 crore. Face value per share is INR 1.
On a consolidated basis, Novelis' net income slumped 84.62% to $14 million on 5.57% decline in net sales to $2408 millon in Q1 June 2013 over Q1 June 2012 as shipments of aluminum rolled products slid 1.94% to 708 kilotonnes during the period under review.
The decrease in net sales was primarily due to a 7% decline in average aluminum prices, lower shipments, and lower conversion premiums.
Adjusted EBITDA fell 21.24% to $204 million in Q1 June 2013 over Q1 June 2012. Results in Q1 June 2013 included a non-recurring $14 million amendment to the company's employee Long-Term Incentive Plan. In addition, Novelis faced continued pricing headwinds and softer than expected demand for beverage can sheet partially driven by unfavorable weather conditions.
Despite the challenges we faced in the first quarter, we maintained financial discipline through good cost control and will continue this focus on cost containment going forward, commented Phil Martens, President and Chief Executive Officer for Novelis. In addition, our global strategic expansions and favorable demand trends supported by the 2014 World Cup in Brazil and automotive material substitution towards aluminum sheet will also help drive our business forward in the second half of this fiscal year, he added.
Hindalco reports Q1 results later today, 13 August 2013. The company's net profit fell 24.7% to INR 482.03 crore on 8.6% decline in net sales to INR 6915.59 crore in Q4 March 2013 over Q4 March 2012.
Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location.
The large -cap company has an equity capital of INR 191.45 crore. Face value per share is INR 1.
On a consolidated basis, Novelis' net income slumped 84.62% to $14 million on 5.57% decline in net sales to $2408 millon in Q1 June 2013 over Q1 June 2012 as shipments of aluminum rolled products slid 1.94% to 708 kilotonnes during the period under review.
The decrease in net sales was primarily due to a 7% decline in average aluminum prices, lower shipments, and lower conversion premiums.
Adjusted EBITDA fell 21.24% to $204 million in Q1 June 2013 over Q1 June 2012. Results in Q1 June 2013 included a non-recurring $14 million amendment to the company's employee Long-Term Incentive Plan. In addition, Novelis faced continued pricing headwinds and softer than expected demand for beverage can sheet partially driven by unfavorable weather conditions.
Despite the challenges we faced in the first quarter, we maintained financial discipline through good cost control and will continue this focus on cost containment going forward, commented Phil Martens, President and Chief Executive Officer for Novelis. In addition, our global strategic expansions and favorable demand trends supported by the 2014 World Cup in Brazil and automotive material substitution towards aluminum sheet will also help drive our business forward in the second half of this fiscal year, he added.
Hindalco reports Q1 results later today, 13 August 2013. The company's net profit fell 24.7% to INR 482.03 crore on 8.6% decline in net sales to INR 6915.59 crore in Q4 March 2013 over Q4 March 2012.
Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location.
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