Hindalco's Novelis Aims To Achieve Sustainable Ebitda/Tonne Of $525/Tonne By Q4 FY24: ICICI Direct

ICICI Direct Report

We attended Hindalco Industries Ltd.’s Investor Day. Following are the key highlights of the meet.

• Novelis aims to achieve long term sustainable Ebitda/tonne of $525/tonne by Q4 FY24.

• Hindalco has indicated it is pacing spend on growth capex for both Novelis and Indian operations. Of ~$8 billion capex announced a year ago, the company is prioritising ~$4.4 billion capex projects, which are already under way while the balance is being classified under the bucket - identified future growth opportunities. The company did indicate that balance growth projects have been deferred and not cancelled.

• At Novelis, Hindalco plans to spend ~$3.3 billion over FY24-28 while they have deferred ~$1.5–1.8 billion worth of projects.

• For Indian operations, Hindalco plans to spend ~$1.13 billion over FY24- 28 while it has deferred ~$2.32 billion worth of projects.

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