Novelis' Q3 fiscal results hit by volatile aluminium scrap prices, says CEO: net income declines 9% Y-o-Y

Novelis Inc., the international arm of Hindalco Industries Limited and the world leader in aluminium rolling and recycling, has announced its third-quarter results demonstrating a further downfall in financial performance. According to Steve Fisher, president and CEO of Novelis Inc., the increased competition in the scrap aluminium industry, with many more players joining, is creating significant pressure on pricing and eventually impacting their financial results.

According to the Q3 report, Novelis' net income stood at $110 million, further down by 14 per cent from $128 million in the previous quarter and 9 per cent lower than $121 million during the corresponding period of the last year. Net income attributable to common shareholders, excluding special items, was $119 million versus $157 million in Q2 FY2024-25 and $174 million in Q3 FY2023-24.

Adjusted EBITDA was $367 million, reflecting a Q-o-Q decline of 20.6 per cent from $462 million and a Y-o-Y fall of 19.2 per cent from $454 million. Adjusted EBITDA per tonne shipped was $406 million compared to $499 million a year ago.

Steve Fisher, president and CEO of Novelis Inc., said: "We continue to see strong demand across our markets as customers increasingly ask for lower-carbon, higher-recycled-content aluminium solutions as a way to reduce their carbon footprint. With a leading industry average of 63% recycled content in our products in our last fiscal year, Novelis has been a pioneer in using recycled inputs to drive down carbon emissions. As others have begun to follow suit, competition for scrap aluminium has intensified and is creating significant pressure on scrap pricing, which is impacting our financial results. We believe we are well-positioned to face these challenges and have operational and cost-efficiency initiatives underway to offset some of the pressures. At the same time, we are also developing new technologies that will allow us to expand the types of scrap inputs we can purchase for use in our system."