Hindalco Industries’ shares saw a sharp decline of over 6% following Novelis Inc.’s financial update. Novelis, the U.S.-based aluminum producer and a key subsidiary of Hindalco, announced an 18% year-on-year drop in net income for the September quarter of FY 2024-25, down to $128 million from $157 million reported in the same period last year.
This earnings dip was primarily attributed to $61 million in charges due to production disruptions at Novelis’s Sierre plant, along with increased restructuring and impairment expenses. The company also cited a weakened operating performance as a contributing factor. Despite these challenges, Novelis reported a 4.5% increase in net sales, reaching $4,295 million, fueled by rising aluminum prices and a 1% increase in total flat-rolled product shipments to 945 kilotonnes.
As of 9:20 am, Hindalco Industries shares were trading 4.94% lower at Rs 673.25 on the NSE.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
