Hindalco's Novelis Q4 Results Review - Revenue Inline; Ebitda Miss Led By Higher Input Costs: Motilal Oswal

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 Novelis’ Q4 FY23 revenue was down 9% YoY but up 5% QoQ at $4.4b (8% above our estimate) driven by improved product mix and increased product pricing offset by lower volumes. Adjusted Ebitda was down 6% YoY but up 18% QoQ at $403 million (11% below estimate). The miss was due to less favorable metal benefits from recycling, higher energy cost, inflationary pressure and lower volumes. Ebitda/tonne was flat YoY but up 15% QoQ at $431 during the quarter.  Adjusted profit after tax dipped 13% YoY but up 36% QoQ at $197 million, which was 20% above our estimate of $164 million, supported by lower tax outgo.Shipments stood at 936 thousand tonne (down 5% YoY/up 3% QoQ), in line with our estimate of 975 kt. Shipments from North America / Europe / Asia /South America stood at 363 kt/248 kt/187 kt/144 kt (-4%/ +2%/ +33%/ -11% QoQ). For FY23, Hindalco’s revenue stood at $18.5 billion (+8% YoY), Adjusted Ebitda came in $1.8 billion (-10% YoY) and adjusted profit after tax came in at $859 million (-9% YoY). Volumes were down 2% YoY at 3.79 mt in FY23. Management expects headwinds from destocking in beverage can vertical and softening in construction sector to continue for the next couple of quarters; however, we note that these are temporary headwinds that are not likely to dent the structural margin improvement trend of Hindalco..Click on the attachment to read the full report:.Piramal Enterprises Q4 Review - Stressed Asset Resolutions, Normalisation In Credit Costs: Motilal Oswal.DISCLAIMERThis 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.

Hindalco's Novelis Q4 Results Review - Revenue Inline; Ebitda Miss Led By Higher Input Costs: Motilal Oswal

Long-term Ebitda/tonne guidance unchanged at $525.

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