Novelis Q1 profit jumps 71% as Hindalco arm gains from aluminium demand, cost savings

Novelis, a Hindalco subsidiary, reported a 71% jump in Q1 profit to $164 million, driven by aluminium market conditions and cost savings.

Net sales rose 23% to $5.8 billion, mainly due to higher aluminium prices, but total rolled product shipments declined 5% to 916 kilotonnes.

Adjusted EBITDA per tonne shipped increased 30% to $563, despite lower shipments, thanks to cost improvement initiatives and lower aluminium scrap prices.

Novelis expects to return to positive free cash flow in Q4, supported by the Oswego facility restart, expected insurance recoveries, and lower capital spending.