Hindalco touches 52-week high on strong Novelis performance

Hindalco shares surged as much as 7.4 per cent on the back of robust performance by its overseas subsidiary Novelis in Q1FY18. The impressive performance was largely aided by firm aluminium prices.

The net sales for the quarter increased 16 per cent to $2.7 billion. This was largely driven by rise in shipments of flat rolled products by 4 per cent to 785 kilo tonnes. In addition, higher aluminium prices augured well for the company.

Further, improving operational performance and favourable product mix led to 7.8 per cent rise in EBITDA for Q1FY18 to $289 million. The company has also provided optimistic guidance for maintaining the EBITDA margins and expects FY18 EBITDA at $1100-$1150 million.

The lower interest outgo led to three-fold jump in its net profit to $101 million in Q1FY18 as against $24 million in the corresponding quarter previous year. The company also posted $69 million improvement in cash flow and also expects it to increase to $400 million in FY18.

The company's stock touched 52-week high at Rs.244.8 and was trading at Rs 235.8 intra-day, up by 3.6 per cent. Hindalco touched its 52-week high on strong Novelis performance