Hindalco’s   Novelis Continues To Surprise On Q3 Margins: Motilal Oswal
A man pulls out an aluminum pipe made by Hindalco Industries at a shop in an old section of New Delhi, India. (Photographer: Amit Bhargava/Bloomberg)

Hindalco’s Novelis Continues To Surprise On Q3 Margins: Motilal Oswal

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Motilal Oswal Report

The Q3 FY21 result of Hindalco Industries Ltd.’s subsidiary Novelis highlights the strong rebound in business performance.

Adjusted Ebitda grew 39% YoY to $476 million (8% above estimate), driven by the highest ever margins of $510/tonne (estimate $490/tonne).

We raise our consolidated FY21E/FY22E/FY23E profit after tax estimate by 8%/6%/6%, factoring in strong margins for Novelis.

We also expect faster deleveraging as net debt/Ebitda has declined sharply to 3.3 times.

Click on the attachment to read the full report:

Motilal Oswal Hindalco Q3FY21 Result Updare.pdf

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