Hindalco Industries rises after good Novelis results

Hindalco Industries rose 0.94% to Rs 221.10 at 10:38 IST on BSE after the company's US-based subsidiary, Novelis, reported good earnings in June quarter.

Meanwhile, the S&P BSE Sensex was up 84.16 points, or 0.22% to 37,749.96.

On the BSE, 4.05 lakh shares were traded in the counter so far compared with average daily volumes of 6.78 lakh shares in the past two weeks. The stock had hit a high of Rs 224.90 and a low of Rs 220.20 so far during the day. The stock hit a record high of Rs 283.95 on 5 January 2018. The stock hit a 52-week low of Rs 192.50 on 23 July 2018.

Novelis, the wholly owned subsidiary of Hindalco Industries, on Tuesday, 7 August 2018, posted a 10% increase in net income at $113 million in the June quarter on better operational performance and higher capacity utilisation. The company, which deals in aluminium rolled products, had reported a net income of $103 million in the same period last year.

However, including some tax benefits, the firm reported a net income of $137 million, against $101 million in year-ago period, attributable to its common shareholder, it said in a statement. The increase in net income, excluding special items, was mainly due to a 15% increase in adjusted EBITDA over the prior year to $332 million in the first quarter of fiscal 2019, it said.

Its sales increased 16% to $3.1 billion, driven by higher average aluminium prices, higher shipments, and more favourable product mix, partially offset by lower conversion premiums on some products, the statement said.

Novelis Inc. is the global leader in aluminum rolled products and the world's largest recycler of aluminum. The company operates in ten countries.

Net profit of Hindalco Industries declined 24.98% to Rs 376.97 crore on 5.94% rise in net sales to Rs 11681.10 crore in Q4 March 2018 over Q4 March 2017.

Hindalco Industries, the metals flagship company of the Aditya Birla Group, is a leading player in aluminium and copper manufacturing. It is the world's largest aluminium rolling company and one of Asia's biggest producers of primary aluminium.

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