Hindalco tumbles 4%
The stock price of Hindalco is showing weakness today after its subsidiary, Novelis, reported a weaker-then-expected earnings for the Dec quarter.
Novelis reported a 3% (YoY) drop in total revenue at $4.2 billion due to 2% decline in Flat-Rolled Products (FRP) shipments, which to some extent were offset by improved sales in automobile sector as the semiconductor shortage scene is easing.
Lower volumes, extraordinary inflationary environment, higher energy costs due to geopolitical instability and tighter scrap spreads impacted the company's operating profit for the quarter.
The company said that EBITDA per tonne will bounce back to $500-$525 in new fiscal. Net debt rose $100 million to $4,729 million.
This performance impacted the stock price of Hindalco which fell over 4% to an intraday low at Rs.429.30 and continues to trade around the same levels.