Atlanta’s rolled and recycled aluminium firm Novelis Inc. reported financial results for the first quarter of fiscal year 2021 on Monday. Despite a very difficult global market, the firm managed several record financial highs.
During the three months ending September 30 the firm reported a net income from continuing operations of US$144 million, which is a 19-percent rise on the quarter. Novelis shipped a record 923 thousand metric tons of product in the quarter, good for an increase of 11 percent on the year and 19 percent on the quarter.
For the first quarter of fiscal 2021 Novelis reported an adjusted EBITDA of US$455 million, up by 22 percent on the year and 80 percent on the quarter. Net sales in the quarter rose by 4 percent on the year to US$3 billion, and the year-to-date free cash flow came to US$132 million, up substantially on the year from last year’s free cash flow through the first quarter came to US$18 million.
Steve Fisher, President and CEO, Novelis Inc., elaborated upon the firm’s performance in a press release.
“Our outstanding performance this quarter was largely driven by our ability to effectively manage our business and work with customers to meet a sharp increase in demand. While future economic implications resulting from the pandemic remain uncertain, our diverse product portfolio, geographic footprint, and strong financial position will enable Novelis to continue to successfully meet customer needs and continue to invest in our business.”
Notably, the quarter saw the closing of its acquisition of Aleris, which was approved by government regulators on the condition that it sells the Duffel and Lewisport plants. Novelis’ finances as of September 30 reflect the business without those two plants.
Novelis is a subsidiary of Mumbai’s Hindalco Industries Ltd. Based in Atlanta, the firm accounts for almost half of Hindalco’s consolidated revenue. The world’s largest recycler of aluminium, Novelis conducts operations in ten different countries, employs around eleven thousand people, and reported US$10 billion in revenue for the most recent fiscal year.