Hindalco arm Novelis Q3 net income falls 9% to $110 million; sales rise 4% to $4.1 billion – CNBC TV18

US-based mostly Novelis Inc, which is a part of Hindalco Industries, on Monday (February 10) reported a 4% yr-over-yr (YoY) enhance in net sales to $4.1 billion in Q3 FY25, pushed by larger aluminium costs, whereas complete rolled product shipments remained secure at 904 kilotonnes. Sturdy demand for beverage packaging was offset by decrease automotive and specialty shipments.

Net income attributable to the frequent shareholder declined 9% to $110 million, with adjusted net income dropping 32% to $119 million. Adjusted EBITDA fell 19% to $367 million due to larger aluminium scrap costs and an unfavourable product-combine, main to a 19% decline in EBITDA per tonne to $406.

Working money stream for the primary 9 months of FY25 stood at $263 million, down from $420 million a yr earlier. Adjusted free money stream confirmed a better outflow of $915 million due to elevated capital expenditure of $1.2 billion, up 22%, primarily for US capability growth, together with Bay Minette.

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As of December 31, 2024, liquidity stood at $1.6 billion, with money reserves of $791 million. In January 2025, Novelis raised $750 million by way of senior unsecured notes due 2030, primarily to repay borrowings below its ABL revolver. The corporate’s net leverage ratio was 2.9x.

Steve Fisher, President and CEO of Novelis Inc, stated, “We proceed to see sturdy demand throughout our markets as clients more and more ask for decrease-carbon, larger-recycled-content material aluminium options as a manner to cut back their carbon footprint. With a number one business common of 63% recycled content material in our merchandise in our final fiscal yr, Novelis has been a pioneer in utilizing recycled inputs to drive down carbon emissions. As others have begun to comply with swimsuit, competitors for scrap aluminium has intensified and is creating important stress on scrap pricing, which is impacting our monetary outcomes.”

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Shares of Hindalco Industries Ltd ended at ₹596.10, down by ₹11.35, or 1.87%, on the BSE.