Hindalco Industries stock falls after subsidiary Novelis’ net income drops 23%

Shares of Hindalco Industries fell nearly 5 per cent today after Novelis Inc, a subsidiary of the Aditya Birla Group firm, reported a 23 per cent fall in net income to $183 million for the quarter ended September 30 against a net income of $237 million in the corresponding period of the previous fiscal. Hindalco Industries stock fell to Rs 416.45, losing 4.81 per cent intraday on BSE. Market cap of the firm declined to Rs 94,179 crore. The stock has fallen after gaining for two days. Hindalco Industries shares are trading higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages. Hindalco stock has lost 9.79% in one year and declined 11.85% since the beginning of this year.

Total 2.95 lakh shares of the firm changed hands amounting to a turnover of Rs 12.42 crore.  Net sales rose 17% to $4.8 billion in Q2 of the current fiscal compared to $4.1 billion in the prior year period. However, adjusted EBITDA fell 8% to $506 million in the second quarter of fiscal year 2023, compared to $553 million in the prior year period.

Steve Fisher, President and CEO, Novelis Inc said, "The company delivered a solid second quarter despite challenging headwinds from inflation, the stronger US dollar, and reduced metal benefits, with good operational performance that allowed it to capture robust end-market demand in the quarter and increase total shipments."

Novelis is a global provider of sustainable aluminium solutions and is into aluminium rolling and recycling.

Also Read: Dr Lal PathLabs shares dive 8% after Q2 results. Should you hold, sell, or buy?

Also Read: Rakesh Jhunjhunwala portfolio value crosses Rs 35,000 crore mark