Hindalco drops as subsidiary Novelis quarterly earnings decline

The adjusted EBITDA for the fourth quarter of fiscal quoted at $201 million compared to the $250 million last year

Shares of  Hindalco  have dropped over 2.5% to Rs 134 on the BSE in an otherwise firm market after the quarterly earning of its subsidiary Novelis missed expectations as the adjusted EBITDA for the fourth quarter of fiscal 2015 quoted at $201 million compared to the $250 million reported for the corresponding period last year . 

The world leader in aluminum rolling and recycling reported a net income of$148 million for fiscal year 2015, a 42 percent jump from the $104 million reported in fiscal 2014.

However, the shipments of aluminum rolled products was 758 kilotonnes for the fourth quarter of fiscal 2015, up slightly compared to shipments of 753 kilotonnes for the corresponding quarter last year.  Net sales increased to $2.8 billion compared to $2.5 billion in the prior year period. CLICK HERE FOR FULL REPORT

"Fiscal 2015 was a successful year as we grew our portfolio of high-recycled, premium products," said Steve Fisher, Interim President and Chief Executive Officer for Novelis.  "We achieved record total shipments, drove benefits from expanding low-cost recycling capabilities worldwide, and grew automotive shipments to record levels, strengthening our leadership position in this fast growing segment.  While we are pleased with these achievements, the strengthening U.S. dollar and declining local market metal premiums in the fourth quarter tempered our results.

Moreover, the revenue rose 14 percent to $11.1 billion, while profit jumped 42 percent to $148 million.

The stock opened at Rs 136, touched a low of Rs 133 on the BSE. At 10.50AM, a total of 188,124 shares changed hands on the BSE.