Shares of Hindalco fell 9% after US unit Novelis posted weak Q2 FY25 results. Details here

Actions Hindalco Industries Ltd fell sharply in trading on Thursday after its US unit Novelis posted a drop in net profit in September 2024 (2QFY25). The stock fell 8.58 percent to an intraday low of Rs 647.50.

“Net income attributable to our common shareholder decreased 18 percent year-over-year to $128 million in the second quarter of fiscal 2025. The current year period includes $61 million in costs related to production disruptions at Sierre, as well as higher restructuring charges. and impairment charges and lower operating performance, partially offset by a favorable year-over-year change in metal price backlogs and unrealized derivatives. million,” Novelis said.

“Adjusted EBITDA decreased 5 percent year-over-year to $462 million in the second quarter of fiscal 2025, primarily due to less favorable metal benefits due to relatively rapid increases in aluminum scrap prices, an unfavorable product mix and the impact of $25 million USA. in the Sierre, as a result of the flood, these factors were partially offset by higher supplies of beverage packaging. Adjusted EBITDA per ton fell 6 percent to $489.

The company said it has total liquidity of $2.1 billion, consisting of $1.1 billion in cash and cash equivalents and $1.0 billion in available credit facilities.

On the equities front, the counter recorded high trading volume on the BSE today as around 5.17 lakh shares changed hands. This figure was higher than the two-week average volume of 2.88 lakh shares. The share turnover was Rs 34.12 crore and the market capitalization (m-cap) was Rs 145,934.24 crore.

The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMA) but higher than the 200-day SMA. The 14-day Relative Strength Index (RSI) stood at 35.49. A level below 30 is considered oversold, while a value above 70 is considered overbought.

According to BSE data, the company’s shares carry a price-to-equity (P/E) ratio of 34.84 against a price-to-book (P/B) value of 2.50. Earnings per share (EPS) was 20.33 and return on equity (ROE) was 7.17. As of September 2024, the promoters held a 34.64 percent stake in Aditya Birla Group.