Novelis Q2 Profits Recorded Notable Dip Over the Previous Year

SEATTLE (Scrap Monster): Novelis, Inc. reported results for the second quarter of fiscal year 2023.

The net income attributable to its common shareholder stood at $183 million, significantly lower by 23% over the prior year quarter. Also, the net income from continuing operations decreased 23% to $184 million. The adjusted EBITDA of $506 million was down by 8% over the year. The adjusted EBITDA per tonne was $514 during the second quarter of fiscal 2023, said the company press release.

The flat rolled product shipments recorded marginal improvement by 2% over the prior year quarter to total 984 kilotonnes. This contributed to the 17% surge in net sales during the quarter, which totalled $4.8 billion. The shipments to automotive, beverage can and aerospace segments remained strong during the quarter. Novelis reported total liquidity of $2.8 billion as at the end of the quarter.

Devinder Ahuja, Executive Vice President and CFO, Novelis Inc. stated that the company expects further intensification of high energy costs and inflationary impacts in the near-term. The company remains focused on prioritizing and pacing capital spending for its strategic growth initiatives, he added.