Hindalco Industries Q3 Results Review - Indian Operations Improve QoQ; Novelis Remains A Drag: Axis Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.With Novelis numbers already reported, Hindalco Industries Ltd.'s segmental Ebitda (down 32%/16% YoY/QoQ) beat of 5% versus our estimate was driven by better than expected Ebitda at Indian aluminium and copper operations. Aluminium Ebitda grew by 13% QoQ on lower coal costs. Copper Ebitda was flat QoQ, 2% beat on better treatment/refining charges and cold coil rod volumes. Novelis (down 25%/30% YoY/QoQ reported earlier) dragged the consolidated Ebitda down. Consolidated revenue grew 6% YoY, (down 5% QoQ) due to better realisations and volumes at Indian operations. Profit after tax declined 63%/38% YoY/QoQ led by a drop in Ebitda. We factored in lower Ebitda/tonne guidance for Novelis earlier. We now factor in some coal cost deflation in our upstream aluminium business and as a result, we slightly increase our Ebitda estimates for FY23/24E up, by 3%/5% YoY respectively against our Feb 08 note (FY25 estimates largely unchanged). We maintain our cautious view on the stock in light of Novelis headwinds and possibility of supply concerns of coal ahead of the summer season..Click on the attachment to read the full report:.Hindalco Q3 Results Review - Subdued Performance; Outlook Positive: Motilal Oswal.DISCLAIMER This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hindalco Industries Q3 Results Review - Indian Operations Improve QoQ; Novelis Remains A Drag: Axis Securities

We maintain our cautious view in light of Novelis headwinds, possibility of supply concerns of coal ahead of summer season.

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