US-based Novelis Inc, which is part of Hindalco Industrieson Monday (February 10) reported a 4% year-over-year (YoY) increase in net sales to $4.1 billion in Q3 FY25, driven by higher aluminium prices, while total rolled product shipments remained stable at 904 kilotonnes. Strong demand for beverage packaging was offset by lower automotive and specialty shipments.
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Net income attributable to the common shareholder declined 9% to $110 million, with adjusted net income dropping 32% to $119 million. Adjusted EBITDA fell 19% to $367 million due to higher aluminium scrap prices and an unfavourable product-mix, leading to a 19% decline in EBITDA per tonne to $406.
Operating cash flow for the first nine months of FY25 stood at $263 million, down from $420 million a year earlier. Adjusted free cash flow showed a higher outflow of $915 million due to increased capital expenditure of $1.2 billion, up 22%, primarily for US capacity expansion, including Bay Minette.
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As of December 31, 2024, liquidity stood at $1.6 billion, with cash reserves of $791 million. In January 2025, Novelis raised $750 million via senior unsecured notes due 2030, primarily to repay borrowings under its ABL revolver. The company’s net leverage ratio was 2.9x.
Steve Fisher, President and CEO of Novelis Inc, said, “We continue to see strong demand across our markets as customers increasingly ask for lower-carbon, higher-recycled-content aluminium solutions as a way to reduce their carbon footprint. With a leading industry average of 63% recycled content in our products in our last fiscal year, Novelis has been a pioneer in using recycled inputs to drive down carbon emissions. As others have begun to follow suit, competition for scrap aluminium has intensified and is creating significant pressure on scrap pricing, which is impacting our financial results.”
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Shares of Hindalco Industries Ltd ended at ₹596.10, down by ₹11.35, or 1.87%, on the BSE.
