Hindalco’s Novelis Q4 Review - On Track For Deleveraging, Growth: Centrum Broking
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Centrum Broking Report
Novelis (Hindalco Ltd.’s 100% subsidiary) reported in-line adjusted Ebitda of $505 million (our estimate: $485 million), up 32% YoY and Ebitda/tonne of $514 (our estimate: $510/tonne), up 9% YoY.
Management is confident of achieving $500/tonne Ebitda in Q1 FY22 despite some weakness in auto volumes, which provides comfort on FY22 numbers.
We expect Novelis to achieve FY22E Ebitda of $500/tonne which will increase to $520/tonne in FY23E with improvement in auto demand.
We revise our consolidated FY22E/FY23E Ebitda by 3%/5% respectively to factor in higher London Metal Exchange aluminium prices ($2,200/tonne in each of FY22E and FY23E versus $2,100/tonne earlier).
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