Novelis Inc, the world’s largest recycler of aluminium is the overseas subsidiary of Hindalco Industries and usually, its results are taken as an indication of things to come for Hindalco itself. Thus when Novelis announced a four times jump in Q1FY18 net profit, little wonder that Hindalco is the top gainer on the BSE on opening bell itself!

The company which makes flat rolled aluminium products posted a net profit of $101 million v/s $24 million in previous Q1. The company has stated that this jump in net profit was on account of higher EBITDA and lower interest expense following debt refinancing actions in fiscal 2017.

Novelis net sales rose 6% (YoY) to $2.7 billion and this was on account of 4% rise in total shipments, a 16% increase in shipments of higher conversion premium automotive products and higher average aluminium prices.

The stock price of Hindalco has reacted positively today morning. It hit a new high at Rs.240.45.