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. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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