Hindalco shares dive 9% after US-based arm Novelis posts weak Q2 FY25 numbers. Details here

Shares of Hindalco Industries Ltd fell sharply in Thursday's trade after its US-based unit Novelis recorded a drop in the September 2024 (Q2 FY25) quarter's net profit. The stock slumped 8.58 per cent to hit a day low of Rs 647.50.

"Net income attributable to our common shareholder decreased 18 per cent versus the prior year to $128 million in the second quarter of fiscal year 2025. The current year period includes $61 million in charges associated with the production interruptions at Sierre, as well as higher restructuring and impairment expense and lower operating performance, partially offset by a favorable change in metal price lag and unrealized derivatives year-over-year (YoY). Net income attributable to our common shareholder, excluding special items, was down 1 per cent YoY to $179 million," Novelis stated.

"Adjusted EBITDA decreased 5 per cent versus the prior year to $462 million in the second quarter of fiscal year 2025, primarily driven by less favorable metal benefit due to a relatively rapid increase in aluminum scrap prices, unfavorable product mix, and a $25 million impact at Sierre as a result of the flood. These factors were partially offset by higher beverage packaging shipments. Adjusted EBITDA per tonne was down 6 per cent YoY to $489," it added.

The company said it had a total liquidity position of $2.1 billion, consisting of $1.1 billion in cash and cash equivalents and $1.0 billion in availability under committed credit facilities.

On the stock-specific front, the counter saw high trading volume on BSE today as around 5.17 lakh shares were seen changing hands. The figure was higher than the two-week average volume of 2.88 lakh shares. Turnover on the stock came at Rs 34.12 crore, commanding a market capitalisation (m-cap) of Rs 1,45,934.24 crore.

The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMAs) but higher than the 200-day SMA. The scrip's 14-day relative strength index (RSI) came at 35.49. A level below 30 is defined as oversold while a value above 70 is considered overbought.

According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 34.84 against a price-to-book (P/B) value of 2.50. Earnings per share (EPS) stood at 20.33 with a return on equity (RoE) of 7.17. As of September 2024, promoters held a 34.64 per cent stake in the Aditya Birla Group company.