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.
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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