Now Reading: Hindalco Q1 profit jumps 75% on aluminium spike, Novelis rebound
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Hindalco Q1 profit jumps 75% on aluminium spike, Novelis rebound
Hindalco Q1 profit jumps 75% on aluminium spike, Novelis rebound
Hindalco Industries posted a 75% jump in net profit for the June quarter, with revenue rising 32% and EBITDA climbing 73%, the Economic Times reports. The company credited higher aluminium prices and…
The Story in Brief
Hindalco Industries posted a 75% jump in net profit for the June quarter, with revenue rising 32% and EBITDA climbing 73%, the Economic Times reports. The company credited higher aluminium prices and a recovery at its US subsidiary Novelis. Aluminium on the London Metal Exchange averaged $3,577 per tonne, up from $2,447 a year earlier, driven by what Hindalco called the largest-ever supply shock from the West Asia conflict. Novelis restarted its Oswego hot mill in June and achieved over $225 million in run-rate cost savings, supporting earnings. Hindalco’s India aluminium business benefited from higher realisations, recording its highest-ever quarterly EBITDA.
The Indian Opinion
The market is eager to label Hindalco’s strong quarter a pure commodity play, but that ignores the real work at Novelis. The $225 million in cost savings and the Oswego restart are operational wins, not just luck from West Asia’s supply shock. The real test will come when aluminium prices ease. Can Novelis sustain its recovery and offset a potential margin squeeze in the upstream business? Hindalco’s dual engine will be judged on that, not just on the LME quote.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
