Hindalco surges 7% as Novelis reports strong Q1 results

Hindalco has gained 7% to Rs 245, also its 52-week high on BSE in early morning trade, after its overseas subsidiary, Novelis Inc reported a four-fold jump in net income at $101 million for the first quarter of FY18 (Q1FY18).  The company had posted net income of $24 million in the corresponding period of previous year.

"The year-over-year increase in net income is driven primarily by higher EBITDA ((Earnings before interest, taxation, depreciation and amortization) and lower interest expense following debt refinancing actions in fiscal 2017," the company said in a press release.

Net sales increased by 16% to $2.7 billion for the first quarter of FY18.

"This was driven by a four per cent increase in total shipments of flat rolled products to 785 kilo tonnes, including a 16% increase in shipments of higher conversion premium automotive products, as well as higher average aluminium prices," it added.

The board of directors of Hindalco Industries will meet on Friday, the 11th August, 2017, to consider the unaudited standalone financial results of the company, for the first quarter ended 30th June, 2017.

At 09:32 am; the stock was up 6.4% at Rs 242, as compared to 0.13% rise in the S&P BSE Sensex. A combined 8.42 million shares changed hands on the BSE and NSE so far.

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