Hindalco's Novelis Q1 Review - Margin Outlook Remains Strong: Motilal Oswal
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Motilal Oswal Report
Hindalco Industries Ltd.'s wholly-owned subsidiary Novelis, reported record-high adjusted Ebitda of $508 million (adjusted for one-off income of $47 million) on the back of record-high margins of $522/tonne (up 2% QoQ).
Novelis should see mix improvement in H2 FY22 and FY23 as the share of auto volumes should increase on account of capacity additions.
We raise our consolidated FY22E/FY23E Ebitda by 3%/6%, factoring in a higher aluminum price assumption (up 3%/7% to $2,375/$2,300 per tonne for FY22/FY23).
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