Hey everyone! Let’s chat about something exciting: Novelis, also known to many of you as Hindalco Industries Ltd., just dropped their Q3 results for fiscal year 2024. If you’re curious about what’s been happening behind the scenes, you’re in the right place. Let’s simplify these numbers and see why they matter.

The Numbers Tell a Story 📊

• Net Income: They’ve hit $121 million this quarter, up from $12 million last year. That’s a huge jump, right? And if we exclude special items, it’s at $174 million, an 81% increase from last year.
• Adjusted EBITDA: This is at $454 million, growing by 33% from last year.
• Shipments: They shipped 910 kilotonnes of rolled products, pretty much the same as last year. Consistency is key!
• EBITDA Per Tonne: This metric is also up by 33%, reaching $499.

Behind the Success 🚀

Steve Fisher, the CEO, attributes this success to their global reach, diverse product offerings, and their lead in recycling. It’s their unique strategy that’s keeping them ahead in the game.

Even though their net sales dipped by 6% to $3.9 billion (mostly because of fluctuating aluminum prices), their shipment volume stayed steady. That’s quite the balancing act, showing us how solid their market position is.

What’s Up with the Cash? 💸

• Operating Cash Flow: It’s up to $420 million for the first nine months of FY2024, improving from $309 million last year.
• Free Cash Flow: They did see more cash going out ($517 million), mainly because they’re investing heavily in new projects.

Speaking of investments, they’ve spent $960 million so far on new rolling and recycling capacities. That’s a big number, but it shows they’re thinking long-term, focusing on growth and sustainability.

The Future Looks Bright 🌟

Looking ahead, they’re aiming for an Adjusted EBITDA per tonne of $525 starting from the fourth quarter of this fiscal year. They’re all about expanding margins and making strategic investments to capture more growth.

And there’s a big project on the horizon – the Bay Minette plant in Alabama. It’s a $4.1 billion investment that’s going to boost their production for the beverage packaging and automotive markets. It’s not just any plant; it’s going to be state-of-the-art, focusing on efficiency and sustainability.

Let’s Wrap This Up 🌈

So, what do we take away from all this? Novelis (or Hindalco Industries Ltd., for those who like the full name) is on a solid path. Their Q3 FY2024 results are impressive, not just because of the numbers, but because of what lies behind them: strategic growth, investment in the future, and a commitment to sustainability.

What do you think about Novelis’s performance and their plans for the future? Drop your thoughts below, and let’s keep the conversation going!

Remember, whether you’re an investor, a sustainability enthusiast, or just curious about the aluminum industry, keeping an eye on Novelis is bound to be interesting. Stay tuned for more updates!

A Monumental Step in Indian Rail Infrastructure

Mumbai, January 16, 2024 – In what marks a significant leap in Indian railway infrastructure, L&T Construction’s Railways Strategic Business Group has bagged a mega contract for the electrification of the Mumbai-Ahmedabad High-Speed Rail (MAHSR) Project. This move paves the way for the much-anticipated Bullet Train Project in India.

The Scope of the Project

This prestigious contract, won from a renowned Japanese agency, involves the construction of a 508 Route Km High-Speed Electrification System (Package No: EW 1). L&T Construction is tasked with the design, manufacture, supply, construction, installation, testing, and commissioning of a 2 x 25 kV Power Supply Electrification System. This includes Traction Substations, High Speed Overhead Equipment, and MV/LV Power Distribution Equipment Works on a Design-Build Lump Sum Price basis.

A First-of-Its-Kind Undertaking

This project stands out as India’s first railway electrification project featuring the implementation of Japanese Shinkansen High-Speed Electrification Technology. The advanced system will include sophisticated equipment like Heavy Compound Catenary System, Change Over Switches, etc. Once completed, it will enable trains to reach speeds of up to 320 KMPH.

Funding and Implementation

The project, funded by the Japan International Cooperation Agency (JICA), is being implemented by an authorized Japanese agency on behalf of National High-Speed Rail Corporation Ltd (NHSRCL).

L&T’s Expertise and Vision

L&T, a leader in the Railway Electrification domain, boasts a wide range of expertise in various electrification systems. Mr. S N Subrahmanyan, Chairman & Managing Director of L&T, expressed pride in this win, stating that it places L&T’s Railways Business among the top global Railway System Integrators. He emphasized the project’s crucial role in transforming long-distance transportation in India.

Mr. Rajeev Jyoti, Advisor to Chairman & Managing Director for Railways Business, highlighted that this is the largest single railway electrification project order ever placed in India. He underscored L&T’s unique position in leveraging its strengths for the project’s success and the potential for future high-speed rail projects in India and abroad.

Impact on L&T stock

Well, this looks like just another ball in the court of Larsen and Tourbo Ltd. Just have a look at this long term chart for L&T stock. Impressive growth and a one way rally all through. We are sure that as India will spend more on massive projects like Bullet train in future, L&T will just keep getting new projects. However, an investor must notice the increased PE ratio of 40 before making any investment here.

L&T’s Growing Portfolio in Rail Electrification

L&T is already executing several electrification projects across India and overseas, including Mauritius LRT, Dhaka Metro, and various metro and railway projects in India. The company’s involvement in the MAHSR project extends to Civil Viaduct, Station Packages, Track & Depot Packages, and Special Steel Bridges Packages. Additionally, as all the railway stocks are moving up from past few years, we expect more participation from L&T.

About Larsen & Toubro

Larsen & Toubro is a USD 23 billion Indian multinational with a presence in over 50 countries, known for its excellence in EPC Projects, Hi-Tech Manufacturing, and Services. Furthermore, for eight decades, L&T has been a leader in its major lines of business, driven by a strong customer focus and a relentless pursuit of quality.

In a significant move, Inox Wind Limited (IWL), a leading wind energy solutions provider in India, secures a Letter of Intent (LoI) for a 50 MW wind power project from NLC India Limited. The project is set to unfold on a turnkey basis at Gujarat’s Dayapar site, linked to the Interstate Transmission System (ISTS). Alongside supplying and commissioning its 2.0 MW capacity Wind Turbine Generators (WTGs), Inox Wind commits to extending comprehensive operations and maintenance (O&M) services for over 10 years post-commissioning.

Empowering Renewable Energy in India

Expressing the significance of this project, Kailash Tarachandani, CEO of Inox Wind, emphasizes how this reaffirms the company’s standing as a comprehensive wind energy solutions provider in the Indian market. Further speaking Kailash said that Inox Wind is commitment to fulfilling India’s renewable energy capacity targets.

About Inox Wind

Inox Wind Limited (IWL) operates as India’s leading wind energy solutions provider, serving Independent Power Producers (IPPs), Utilities, Public Sector Undertakings (PSUs), and Corporate investors. Forming part of the INOXGFL Group, boasting a legacy spanning over nine decades, IWL plays a crucial role in the wind energy market. It operates state-of-the-art manufacturing plants across Gujarat, Himachal Pradesh, and Madhya Pradesh, producing key components like Blades, Tubular Towers, Hubs, and Nacelles. Therefore, with a manufacturing capacity exceeding 2 GW per annum, IWL stands as a strong player in the industry.

Inox Wind’s Commitment to Quality and Growth

IWL is committed to delivering end-to-end wind energy solutions, right from conceptualization to commissioning and O&M. Moreover, the company boasts certifications such as ISO 9001:2008, ISO 14001:2004, OHSAS 18001, and ISO 3834, underscoring its dedication to maintaining high-quality standards in manufacturing, installation, commissioning, and O&M of wind turbines. Also backed by robust promoters, a healthy balance sheet, and promising macro prospects, IWL anticipates a promising journey of growth and profitability.

In Summary

Inox Wind’s latest collaboration with NLC India Limited underscores its pivotal role in advancing India’s renewable energy landscape. Additionally, the company’s expertise and commitment position it as a key contributor to the nation’s sustainable energy future.

There has been a massive push by govt. of India on the renewable energy push. Although, Inox wind is not the most popular stock in the list for renewable theme, but the company looks good for a long term view. Keep reading more such blogs on Tradealone.