As per the report, the company's net sales in Q1 rose 2 per cent over the year, amounting to $4.2 billion. Higher shipments and increased average aluminium prices jointly boosted the sales. Novelis' total flat-rolled product shipments surged 8 per cent to 951,000 tonnes from 879,000 tonnes in the previous year, primarily due to demand recovery for beverage packaging sheet, which was impacted earlier by customer inventory reduction activity.
Novelis' Q1 report indicates the company's adjusted EBITDA grew 19 per cent Y-o-Y from $421 million to $500 million. Net cash flow provided by operating activities was $74 million in the first three months of FY2024-24 compared to an outflow of $32 million during the corresponding period of the previous year, attributed to higher adjusted EBITDA and favorable changes in working capital.
However, amid the growing sales and shipments, Novelis reported its net income dwindled by 3 per cent Y-o-Y from $156 million to $151 million, as a consequence of flooding at the Sierra plant in Switzerland at the end of June, as well as higher restructuring and unfavourable metal price lag. Nonetheless, the net income, excluding special items, was 32 per cent up Y-o-Y to $204 million.
In Q1, Novelis aimed to raise $945 million in a US IPO by selling 45 million shares for $18-21 each. This IPO listing is part of Hindalco's broader strategy to unlock value and raise capital through all its global subsidiaries. After the initial public offering, Hindalco will reduce its stake in Novelis by 7.5 per cent and retain almost 92.5 per cent of the ownership.
