Hindalco is buzzing in trade on the back of its Q2 results. The standalone aluminum business disappointed but their copper business beat the street expectations.
Detailing the numbers, Satish Pai, MD of Hindalco said that they are confident of achieving $480-500 EBITDA per tonne at Novelis.
“The Q2 EBITDA per tonne is $492 per tonne. So, if the market conditions continue as they are, we will be next year at $480-500 per tonne,” he said.
Speaking about the cost reductions, Pai said that for the Hindalco side they are 15 percent ahead of the target. “We were targeting Rs 900 crore reduction. At the end of Q2 we are 15 percent ahead of the target. Though, I do believe that as business picks up in Q3 and Q4, I would be happy to get to that Rs 900 crore reduction,” he added.
For Novelis, he stated that the target is $250 million fixed cost reduction. “They are also on track to deliver that, but there as well some of the costs may come back because the business has picked up in a V-shaped recovery much faster than we expected,” he explained.