Hindalco arm Novelis posts net income of $307 mn, sales up 18%

Novelis, a wholly-owned subsidiary of Hindalco Industries, has reported a net income of $307 million for the second quarter ended September 30, 2017.

"Novelis Inc..reported a net income of $307 million for the second quarter of fiscal year 2018, compared to a net loss of $89 million in the prior-year period," Hindalco said in a BSE filing.

Excluding tax-affected special items in both years, the company reported a net income of $78 million in the second quarter, up from $60 million reported in the same period last year.

"The increase in net income, excluding special items, is mainly due to a 12 per cent increase in adjusted EBITDA to a record high $302 million for the September quarter," the company said.

The year-over-year improvement in adjusted EBITDA is mainly on account of higher shipments, favourable metal costs and operational efficiencies.

Driven by higher average aluminium prices and higher total shipments, the company's net sales increased 18 per cent to $2.8 billion for the quarter under review.

"As an industry, we are seeing increasing demand for lightweight, high-strength aluminium from global automotive customers," Novelis CEO Steve Fisher said.

With the increased strategic flexibility, Fisher said, the company is now actively seeking organic investment opportunities to further expand its leadership position in the growing aluminium sector.

The US-based Novelis is the leading producer of flat-rolled aluminium products and the worlds largest recycler of aluminium.