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Motilal Oswal Report
Hindalco Industries Ltd.'s subsidiary Novelis's Q1 FY24 revenue was down 20% YoY to $4.1 billion. However, revenue was 10% above our estimate of $3.7 billion due to improved product mix, higher product pricing and improved automotive shipments, partially offset by lower beverage can shipments and lower London Metal Exchange.
Adjusted Ebitda was down 25% YoY at $421 million (inline with our estimate of $410 million) while Ebitda/tonne stood at $479 ($34/tonne above our estimate of $445/tonne).
The improvement in Ebitda/tonne was due to higher price/mix improvement and forex gains. Adjusted profit after tax dipped 41% YoY to $166 million, which was 11% above our estimate of $149 million in Q1 FY24.
Shipments stood at 879 kilo tonne (down 9% YoY), in line with our estimate of 921 kt. The shipments across North America and Europe were higher by 2% and 1% QoQ, respectively. However, shipments across NA/EU/Asia/ South America were down 4%/8%/5%/20% YoY at 370 kt/250 kt/176 kt/ 119 kt during the quarter.
Channel destocking in beverage industry, lower demand from specialty vertical, slowdown in China and lower packaging demand from South America hit the shipments.
Net debt for Q1 FY24 increased to $4.5 billion (versus $4.1 billion in March 2023) and net leverage ratio stood at 2.7 times (versus 2.3 times in March 2023).
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