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Hindalco surges as subsidiary Novelis Corp reports strong earnings

Novelis’ net sales in the quarter jumped 32 percent year-on-year to $5.1 billion aided by strong demand in the international market.

Mumbai / August 04, 2022 / 10:36 AM IST
Hindalco Industries

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Shares of Hindalco Industries rose sharply on August 4 after subsidiary Novelis Corporation reported strong earnings for the quarter ended June.

Novelis’ net sales in the quarter jumped 32 percent year-on-year to $5.1 billion aided by strong demand in the international market.

Net profit jumped 28 percent to $307 million. The company said that adjusted operating profit came in at a record high of $561 million as against $555 million a year ago.

Operating performance remained strong as adjusted operating profit per tonne surged 33 percent on a sequential basis to $583. In the year-ago quarter, it was $570.

Novelis raised its guidance for operating profit per tonne for 2022 to $525 despite ongoing macroeconomic headwinds for the metal sector.

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Adding to the optimism, Novelis indicated that its capital expenditure in 2022-23 will be around $1.3-1.6 billion including maintenance capex of $300 million.

Brokerage firm CLSA India in a note said that the capex guidance of Novelis is now likely to be at the lower end of the guided band.

At 10:25 am, shares of Hindalco Industries were up 3.7 percent at Rs 429.4 on the National Stock Exchange.

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first published: Aug 4, 2022 10:36 am
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