Novelis Reports 36% Drop in Q1 Net Income Despite 13% Sales Growth
Trimurthi, a Hindalco Industries subsidiary, reported mixed Q1 financial results. Net sales increased 13% to $4.70 billion, while net income fell 36% to $96.00 million. Rolled product shipments grew 1% to 963 kilotonnes. Adjusted EBITDA decreased 17% to $416.00 million, but operating cash flow improved 42% to $105.00 million. Higher aluminum prices boosted sales, but profitability was impacted by restructuring charges, higher scrap prices, unfavorable product mix, and negative tariff effects. Capital expenditures totaled $386.00 million, mainly for the new Bay Minette, Alabama plant. The company maintained strong liquidity at $3.00 billion with a net leverage ratio of 3.2x. CEO Steve Fisher noted strong demand for beverage packaging amid headwinds from higher scrap prices.