Novelis’ results for the January-March quarter of the 2022-23 financial year (Q4FY23) disappointed investors and as a result, the share price of Hindalco (Novelis is a 100 per cent subsidiary of Hindalco) has slid. The non-ferrous metals major is suffering from the impact of a down-cycle in aluminium and copper, as well as the slowdown imposed in Europe by the Russia-Ukraine war. Prospects for the firm look gloomy, at least for the first half (H1) of FY24.
Novelis’ Q4FY23 Ebitda (earnings before interest, tax, depreciation and amortisation) were below estimates on weak volumes (down 5 per cent year-on-year (YoY)), partly offset by quarter-on-quarter (QoQ) or sequential recovery in margins. Channel destocking and weak macro conditions continued to impact the beverage