Shares of Hindalco continued to slump on Tuesday as the company’s December quarter.
What Happened: The flagship company of the Aditya Birla Group reported a 71% year-on-year surge in consolidated net profit, amounting to ₹2,331 crore for the December quarter. However, the number was below analyst expectations of around ₹2,400 crore.
The company experienced a slight decline in consolidated revenue, which fell by 0.6%YoY to ₹52,808 crore. Hindalco’s EBITDA came in at ₹2,443 crore compared to ₹1,591 crore in the corresponding quarter of the previous year.
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Shares of the aluminium major were under pressure even before the results came out as its subsidiary Novelis, yesterday announced an upward revision in cost and time for the capital expenditure of Novelis’ plant in Bay Minette, Alabama, USA.
According to a press statement from Novelis, the capex for the plant has surged from $2.50 billion (around ₹21,000 crore) to $4.10 billion (around ₹33,000 crore), a substantial 64% increase. The plant under construction by Novelis is intended for aluminium recycling and rolling operations in Bay Minette.
Price Action: Hindalco’s share price was down 12.42% to close at ₹510.10 on Tuesday.
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