Hindalco shares surged over 3 per cent to an intraday high of Rs. 192.25 on Wednesday after its US subsidiary Novelis reported strong earnings for the October to December quarter. Novelis contributes more than half of Hindalco's operating profit. Atlanta-based Novelis said its adjusted net profit for the December quarter more than doubled to $67 million dollar compared to $32 million in the year ago quarter.
Novelis' strong performance was supported by a 7 per cent jump in its adjusted EBITDA or operating income to a record high of $255 million and 18 per cent reduction in interest expenses as a result of refinancing of two senior note issuances during the second quarter of fiscal 2017, the company said in a press release.
"Following
our successful bond refinancing during the second quarter, we
refinanced our $1.8 billion term loan with Asian banks in January," said
Devinder Ahuja, senior vice president and chief financial officer at
Novelis.
"Together, these bond and term loan transactions will result in an extended debt maturity profile and annual cash interest savings of approximately $80 million," he added.
Meanwhile, investors are also optimistic about Hindalco's December quarter earnings, to be announced on February 13 (Monday) on the back of strong show from Novelis and a revival of international metal prices.
As of 10.25 am, Hindalco shares traded 1.32 per cent higher at Rs. 188.35, compared to 0.03 per cent gain in the broader Nifty.
"Together, these bond and term loan transactions will result in an extended debt maturity profile and annual cash interest savings of approximately $80 million," he added.
Meanwhile, investors are also optimistic about Hindalco's December quarter earnings, to be announced on February 13 (Monday) on the back of strong show from Novelis and a revival of international metal prices.
As of 10.25 am, Hindalco shares traded 1.32 per cent higher at Rs. 188.35, compared to 0.03 per cent gain in the broader Nifty.
No comments:
Post a Comment