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Novelis reports 6% rise in profit in Q4 even as income falls on declining aluminum prices
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The Hindalco subsidiary’s income has declined by 7% to $4.1 billion due to the decline in the average price of aluminium. However, the company clarified that a part of the decline in prices was compensated by the increase in shipments.
Hindalco Industries’ subsidiary Novelis released its March quarter results on Monday, May 6. The aluminium products company’s profit increased by 6% to $166 million compared to the year-ago period. However, the profit for the entire year has declined by 9%.
The company’s income has declined by 7% to $4.1 billion due to the decline in the average price of aluminium. However, the company clarified that a part of the decline in prices was compensated by the increase in shipments. The total flat-rolled product shipments increased by 2% to 951 kilo tonnes in the March quarter compared to last year, aided by an increase in demand for beverage packaging sheets.
Adjusted EBITDA has increased by 28% compared to last year. CEO Steve Fisher stated that a reduction in operating costs, improvement in market demand and increase in profits in the recycling business aided the company’s performance across all business levels in the March quarter.
The net sales for the entire year declined by 12% to $16.2 billion due to the decline in average aluminium prices and the decline in total flat-rolled product shipments. Shipment for the entire year has fallen by 3% to 3,673 kilo tonnes.
Novelis is the world’s largest aluminium recycling company with footprints across North America, Europe, Asia and South America. The company’s clients span from aerospace, and auto to the beverages packing industry.
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