Novelis Inc. earns net income of $237 million in 2QFY22; Adjusted EBITDA improves 22% to $553 million

　　Novelis Inc. earns net income of $237 million in 2QFY22; Adjusted EBITDA improves 22% to $553 million

　　Novelis also reported that its net sales improved 38 per cent year-on-year in 2QFY22 from $3 billion to $4.1 billion, primarily driven by a 5 per cent increase in shipments and higher average aluminum prices. Flat rolled products shipments increased from 923 kilotonnes in Q2 FY21 to 968 kilotonnes in Q2 FY22, buoyed by strong demand for sustainable aluminum beverage packaging and specialty products.

　　Adjusted EBITDA gained 22 per cent to $553 million in Q2 FY22 from $455 million during the same period last year, attributable to higher volume and favourable metal benefits. Novelis achieved a record Adjusted EBITDA per tonne shipped of $571 in Q2 FY2022, compared to $493 in the prior year.

　　"Our diverse portfolio of high-recycled-content products allowed us to capture strong market demand and deliver another record quarter of EBITDA," said Steve Fisher, President and CEO, Novelis Inc. "While we navigate near-term supply chain challenges, we are actively seeking and implementing new investment opportunities to capture growing customer demand for sustainable, low-carbon aluminum solutions."

　　Novelis has recently announced plans to invest $500 million in growth capital projects, including $375 million investment to expand rolling and recycling capabilities in Zhenjiang, China. The company’s year-to-date free cash flow from continuing operations was $158 million compared to the prior year of $169 million.

　　Outlook for the Indian Aluminium Industry

　　"Since announcing Novelis' long-term capital allocation framework earlier this year, we have reduced gross debt, improved net leverage to below our targeted 2.5x level, and returned $100 million of capital to our common shareholder," said Devinder Ahuja, Executive Vice President and Chief Financial Officer, Novelis Inc. "At the same time, we have maintained adequate liquidity to effectively manage the business' working capital needs, while also remaining strongly positioned to reinvest capital in new capacity and capabilities."