Hindalco Profit Misses Estimates on Novelis Charges
Hindalco Industries reported a consolidated net profit of 25.97 billion rupees for the March quarter, missing analyst estimates due to a 41.71 billion rupee charge at its U.S. unit Novelis. While revenue rose 20.4% on higher aluminum and copper prices, production interruptions at the Oswego plant weighed on the bottom line.
HINDALCO INDUSTRIES LTD reported a 50.8% drop in consolidated net profit to 25.97 billion rupees ($271.40 million) for the quarter ended March 31. The result missed LSEG analyst estimates of 43.12 billion rupees as fire-related disruptions at its United States unit, Novelis, offset gains from higher metal prices. Investors are weighing the impact of a 41.71 billion rupee one-time charge against record performance in the company's domestic segments.
### Novelis Disruptions Offset Revenue Gains Production interruptions at the Oswego, New York, plant in September and November last year forced Hindalco to take a 41.71 billion rupee charge in the fourth quarter. Novelis, which contributes 60% of total revenue, supplies rolled aluminum to beverage can and automotive manufacturers. Despite the operational hurdles, Novelis revenue rose 10.3% to 438.1 billion rupees due to higher average aluminum prices.
