HINDALCO’s subsidiary Novelis Reports Second Quarter Fiscal Year 2025 Results –
- Net Income: $128 million, down 18% YoY due to impacts from the Sierre flood and lower operating performance. Excluding special items, net income was $179 million, a slight decrease of 1% YoY.
- Adjusted EBITDA: $462 million, down 5% YoY; this includes a $25 million negative impact from the Sierre flooding. Excluding this, Adjusted EBITDA grew by 1% YoY.
- Adjusted EBITDA per Tonne: $489, reflecting a 6% YoY decline.
- Net Sales: Reached $4.3 billion, up 5% YoY, mainly due to higher aluminum prices and increased shipments for beverage packaging.
- Shipments: Rolled product shipments rose by 1% YoY to 945 kilotonnes, driven by demand for beverage packaging sheets despite lower automotive shipments impacted by the Sierre production disruption.
- Cash Flow & Capital Expenditure: Operating cash flow was $374 million for the first half of FY25, an improvement from $290 million YoY. Adjusted free cash flow saw an outflow of $345 million, impacted by higher capital expenditures of $717 million focused on new rolling and recycling capacities.
- Liquidity & Leverage: Total liquidity stood at $2.1 billion, with $1.1 billion in cash and $1.0 billion under credit facilities. The net leverage ratio was 2.5x as of September 30, 2024.
Sierre Flood Update: The Sierre plant in Switzerland faced significant flooding in June 2024, incurring $101 million in charges due to damage and excess customer fulfillment costs. Partial operations resumed at the end of Q2, with full restoration expected in Q3 FY25. The anticipated net cash impact post-insurance is estimated at $80 million, with a $30 million hit to Adjusted EBITDA.
Leadership Commentary: CEO Steve Fisher emphasized the resilience and commitment to sustainability, citing record beverage packaging shipments and a 63% recycled content rate. CFO Devinder Ahuja noted a strong focus on balance sheet management amid ongoing strategic investments and shifting market conditions.
Outlook: Novelis remains committed to its growth and sustainability targets, with continued investment in capacity expansions and a strategic focus on managing operational disruptions like the Sierre flood.
