Hindalco arm Novelis' Q1 net income up 10% at $113 million; sales increases 16% to $3.1 billion

Mumbai: Novelis, the wholly owned subsidiary of Hindalco Industries, on Tuesday posted a 10 percent increase in net income at $113 million in the June quarter on better operational performance and higher capacity utilisation. The company, which deals in aluminium rolled products, had reported a net income of $103 million in the same period last year. However, including some tax benefits, the firm reported a net income of $137 million, against $101 million in year-ago period, attributable to its common shareholder, it said in a statement. “The increase in net income, excluding special items, was mainly due to a 15 percent increase in adjusted EBITDA over the prior year to $332 million in the first quarter of fiscal 2019,” it said. [caption id=“attachment_538006” align=“alignleft” width=“380”] Representational image. Reuters[/caption] Its sales increased 16 percent to $3.1 billion, driven by higher average aluminium prices, higher shipments, and more favourable product mix, partially offset by lower conversion premiums on some products, the statement said. The shipments of flat-rolled products increased 2 percent to 797-kilo tonne, it added. “Outstanding operational performance with increased asset optimisation and favourable market conditions contributed to another strong quarter,” said Steve Fisher, president and chief executive officer, Novelis. He said the company’s recent investment announcements in North America and Asia, along with the pending acquisition of Aleris, will diversify the firm’s product portfolio and increase its participation in high-demand, high-value markets to meet growing customer demand. Novelis chief financial officer Devinder Ahuja said, “The progress made by the company to improve and transform the business is clearly reflected in our improved financial results, enabling us to make both organic and inorganic strategic growth investments.”