Hindalco plunges over 7% as Novelis posts weak Q1

Hindalco Industries shares fell over 7 per cent to hit intraday low of Rs 95.55 after its subsidiary Novelis, which contributes around 50 per cent to its consolidated revenues, reported weak earnings for the June quarter.

Novelis, which is world's largest recycler of aluminium posted a net loss of $60 million for the April-June quarter compared to a net profit of $35 million in the corresponding quarter of last fiscal on account of lower average aluminium prices. Its revenue fell 2 per cent annually to $2,634 million against $2,680 million year-on-year.

Novelis' EBTDA or operating profit came in at $127 million against $228 million last year. Average realisation per tonne of Novelis fell 7 per cent sequentially to $3,430 from $3,679 in the March quarter, impacting its profitability.

Hindalco shares closed 7.1 per cent lower at Rs 95.90 apiece on BSE. In last one year Hindalco stocks have corrected nearly 50 per cent against 9 per cent gain in the broader Nifty.

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