The share price of Hindalco Industries, which has been declining since Monday, fell more than 7% on Thursday due to selling pressure. Before reversing part of its losses, the stock fell as much as 7.1% to a low of Rs 666.80, having opened at Rs 716.95, marginally lower than its previous close of Rs 717.45. At around 12:38 a.m., Hindalco Industries’ stock was down 4.73%, trading at Rs 683.50.
What led to Hindalco’s share price fall?
On October 24, 2024, the share price of Hindalco Industries, a significant participant in the aluminum market, fell by a steep 7%. The poor earnings announcement from Paris-based Constellium, a major producer of aluminum products, was the immediate cause of this decrease. Let’s examine this event’s specifics and what it means for Hindalco’s investors.
Hindalco Q2 Results Expected
Analysts anticipate that the company’s September quarter financial results will be a mixed bag. Hindalco is expected to report a profit of ₹1,290 crore, according to Antique Stock Broking. This would be a significant increase of 59% year-over-year (YoY) but a decrease of 12% quarter-over-quarter (QoQ).
“Standalone revenue is expected to fall 8.1% QoQ due to successively lower copper and aluminum prices, but remain mostly stable YoY. Thanks to better operations and lower input commodity costs, EBITDA would increase 39.1% year over year to ₹2,450 crore, according to Antique.
Motilal Oswal Financial Services, a brokerage firm, anticipates a 45.4% YoY increase in adjusted PAT and a 5.1% YoY increase in net revenues. However, PAT may drop 7.6% and sales may drop 0.10 percent on a QoQ basis.
According to CNBC TV-18, Hindalco’s subsidiary Novellis, which accounts for a larger percentage of the company’s EBITDA and 20% of its volumes, is negatively impacted by the demand outlook weakening in the automotive market.
Hindalco declared a consolidated net profit of Rs 3,074 crore for the quarter that ended on June 30, 2024. This represents a 25% increase over the Rs 2,454 crore the firm reported for the same time last year.
