Hindalco Share Price Drops 7.77%; Its Subsidiary Novelis Posted Q2 FY2025 Financial Results

On November 7, 2024, Hindalco share price opened at ₹682.00, down from its previous close of ₹708.20. At 11:00 AM, the share price of Hindalco Industries was trading at ₹653.15, down by 7.77%. 

The decline in the stock price follows the announcement of Novelis, Hindalco’s subsidiary, reporting its Q2 Fiscal Year 2025 financial results.

Novelis Q2 FY 2025 Financial Highlights

Novelis, a leading producer of aluminium rolled products, reported a 5% increase in net sales for Q2 FY2025, reaching $4.3 billion. This increase was mainly driven by higher average aluminium prices and a slight rise in flat-rolled product shipments, which totalled 945 kilotonnes. 

While there was strong demand for beverage packaging sheets, Novelis faced challenges due to lower shipments in some speciality markets and a decrease in automotive shipments. A significant factor was a production interruption caused by flooding at the Sierre plant in Switzerland during the quarter.

Adjusted EBITDA for Novelis decreased by 5% compared to the previous year, totalling $462 million for Q2 FY2025. This decrease was attributed to a less favourable metal benefit, stemming from a rapid rise in aluminium scrap prices, an unfavourable product mix, and the $25 million negative impact from the flooding at the Swiss plant.

Hindalco Industries Q2 FY 2025 Financial Results 

Earlier, in September, Hindalco Industries announced that its board of directors would meet on November 11, 2024, to review and approve the unaudited consolidated and standalone financial results for the quarter and half-year ended September 30, 2024. 

Investors are keenly awaiting further updates as Hindalco’s share price reacts to Novelis’ performance and potential impacts on its consolidated earnings.

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