Hindalco Industries edges lower after Novelis Inc's Q2 result

Hindalco Industries declined 0.85% to Rs 151.05 at 9:32 IST on BSE after Novelis Inc. said its consolidated net profit jumped 65% to $38 million on 17% increase in net sales to $2.8 billion in Q2 September 2014 over Q2 September 2013.

Hindalco's US subsidiary, Novelis Inc. announced Q2 result after market hours on Monday, 10 November 2014.

Meanwhile, the S&P BSE Sensex was up 93.57 points or 0.33% at 27,968.10.

On BSE, so far 29,470 shares were traded in the counter as against average daily volume of 8.92 lakh shares in the past one quarter.

The stock hit a high of Rs 152.95 and a low of Rs 151.60 so far during the day. The stock had hit a 52-week high of Rs 198.70 on 25 July 2014. The stock had hit a 52-week low of Rs 96.95 on 24 February 2014.

The stock had underperformed the market over the past one month till 10 November 2014, advancing 1.43% compared with the Sensex's 6% rise. The scrip had also underperformed the market in past one quarter, falling 17.22% as against Sensex's 10.05% rise.

The large-cap firm has an equity capital of Rs 206.49 crore. Face value per share is Re 1.

Novelis said its net profit excluding certain tax-effected items rose 14% to $42 million in Q2 September 2014 over Q2 September 2013. Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) rose 1% to $230 million in Q2 September 2014 over Q2 September 2013. The increase was primarily driven by higher shipments and cost benefits from using recycled metal inputs. These favorable drivers were partially offset by continued pricing pressures in the Asian markets, a higher fixed cost base due to expansions ahead of revenue generation, and unfavorable currency fluctuations late in the second quarter. "It's an exciting time at Novelis as we continue to transform our business with a more sustainable focus on growing high recycled content premium products," said Phil Martens, President and Chief Executive Officer for Novelis.

Hindalco Industries' net profit fell 30.9% to Rs 327.50 crore on 31.1% rise in total income to Rs 8212.44 crore in Q1 June 2014 over Q1 June 2013.

Hindalco-Novelis a part of Aditya Birla Group is the aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia with the largest single location copper smelter.

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