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Motilal Oswal Report
Hindalco Industries Ltd.'s Novelis reported a weak financial performance in Q3 FY23, missing our estimates. The performance was affected by lower shipments due to beverage packaging destocking and a weak macro scenario.
Revenue/adjusted Ebitda/adjusted profit after tax declined by 12%/32%/39% QoQ to $4,021 million/ $341 million/$145 million.
Revenue was in line with our estimate, while adjusted Ebitda/adjusted profit after tax significantly missed our estimates of $427 million/$175 million.
Ebitda was affected by lower volumes, higher operating costs and negative forex impact of $18 million. Ebitda/tonne at $376/tonne (down 31% YoY/down 26% QoQ) was below our estimate of $427/tonne.
Shipments stood at 908 thousand tonne (down 2% YoY/down 8% QoQ), 9% below our estimate of 1,000 kt.
Shipments were down across geographies. Shipments in North America/ Europe/Asia/South America stood at 380 kt/242 kt/141 kt/162 kt (down 2%/ down 10%/ down 32%/flat QoQ).
The Q3 performance was affected by lower demand from the beverage industry, fewer metal benefits, higher inflation, high energy costs, Covid-related shutdowns in Asian countries, unfavorable forex, etc.
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