BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Hindalco Industries Ltd.'s subsidary Novelis reported a strong beat on topline in Q2 FY23 but Ebitda was in line with our estimate. Strong performance by Asia division strengthened margin.
Revenue/Ebitda/adjusted profit after tax came in at $4,799 million/$502 million/ $238 million, down 5.7%/10.5%/14.7% QoQ, respectively.
Topline was a sharp 18% above our estimate while Ebitda and adjusted profit after tax were in line with our estimates in Q2 FY23.
Shipments during the quarter stood at 984 thousand tonne (up 1.7% YoY/2.3% QoQ) and were in line with our estimate of 1,000 thousand tonne.
Management highlighted that higher energy and logistics costs are likely to impact the second half adversely, especially Q3 FY23 to the tune of $75- 125/tonne.
Contracts will get reset from January 01, 2023 when Novelis will try and cover most of the increased costs and push for higher Ebitda of $525/tonne on a normalised basis.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
