Novelis Reports Net Income Jump Of 33 Percent To US$259 MM In Latest Quarter

Novelis Reports Net Income Jump Of 33 Percent To US$259 MM In Latest Quarter

Atlanta’s rolled aluminium firm Novelis reported results for the fiscal third quarter of FY 2022 this week, turning in strong numbers despite significant supply chain challenges.

For the third fiscal quarter Novelis reported a net income from continuing operations of US$259 million, better by 33 percent on the year. Net income from continuing operations excluding special items totaled US$241 million, improved by 15 percent over last year. Adjusted EBITDA rose by 1 percent on the year to US$506 million, with adjusted EBITDA per ton shipped similarly rising to US$544.

Novelis shipped 930 thousand metric tons in the fiscal third quarter, which is essentially identical to the total from this time last year. The firm said it was hampered due to the ongoing shortage of semiconductors, which hurt the automotive industry.

Steve Fisher, President and Chief Executive Officer, Novelis Inc., said in a press release that the resilience of the firm’s labor force was instrumental in overcoming difficulties in the quarter.

“Our strong third quarter results reflect our team’s ability to deftly navigate headwinds mainly arising from global supply chain disruptions. We will continue to manage through these challenges, while keeping our eyes on our strategic growth path and meeting growing demand for high-recycled-content, sustainable aluminum products.”

Devinder Ahuja, Executive Vice President and Chief Financial Officer, Novelis Inc., said the firm will continue to take advantage of the situation that presents itself going forward.

“Novelis has generated more than $1 billion in trailing-twelve-month adjusted free cash flow before capital investments, despite the significant impact from higher aluminum prices this year. Continued strong cash generation, coupled with our disciplined capital allocation strategy, enables us to continue to strategically invest in sustainably growing the business while remaining  within our targeted net leverage range.”

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$11.2 billion in net sales for the most recent fiscal year.