By Aditya Raghunath
Investing.com -- Novelis Inc., the US subsidiary of Hindalco Industries Ltd. (NS: HALC ), announced its numbers for the June 2021 quarter, and it looks like its parent company has much to cheer about. Revenue grew 59% to $3.85 billion and EBITDA (earnings before interest, tax, depreciation and amortization) was up 101% to $508 million. Both figures are in comparison to June 2020 numbers.
In its research report, brokerage firm ICICI Direct said, “For Q1FY22E, we expect Hindalco's domestic operations (standalone operations + Utkal) to post aluminum sales volume of ~305000 tonnes (303000 in Q1FY21, 329000 in Q4FY21) and copper volumes of ~75000 tonnes (58000 tonnes in Q1Y21 and 107000 tonnes in Q4FY21).”
It expects Hindalco's domestic operations’ topline to come in at Rs 12,752 crore (up 71% YoY but down 12% QoQ). EBITDA margin is likely to come it at 15.1% (13% in Q4FY21, 12% in Q4FY21). Subsequent EBITDA of domestic operations is likely to come in at Rs 1,930 crore, up 116% YoY, 2% QoQ.
Hindalco shares closed at Rs 443.25 on August 5. Brokerage firm Motilal Oswal (NS: MOFS ) has a buy call on the stock with a target price of Rs 520. It said Hindalco is the preferred non-ferrous pick owing to robust volume recovery in both India and Novelis, profitability in its aluminium business and decent valuations.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.