Why Hindalco’s Share Price Fell 7%?

On October 24, 2024, the Birla Group stock opened at ₹716.95, slightly down from its previous close of ₹717.45, and dropped by as much as 7.1% to ₹666.80. However, it later recovered some losses. By 10:05 AM, the stock was trading at ₹685.30, down 4.5%. Meanwhile, the equity benchmark Sensex was down 0.05% at 80,043 during that time.

This decline followed weak quarterly results from the company Constellium, a Paris-based aluminium products company.

Constellium’s Q3 revenue fell 5% year-on-year (YoY), signalling concerns for Hindalco. The report showed reduced demand in the automotive markets of North America and Europe, along with significant drops in North American industrial markets and further declines in European industrial and speciality markets.

CEO Jean-Marc Germain mentioned that their team faced major challenges in the third quarter, including weaker demand across key markets and the effects of a June flood at their Swiss facilities.

In the June quarter, Hindalco posted a consolidated net profit of ₹3,074 crore, a 25% increase from ₹2,454 crore in the same period last year. Its revenue for the quarter was ₹57,013 crore, up 7.6% from ₹52,991 crore in the previous year.

On October 24, 2024, Hindalco Industries Ltd’s share price opened at ₹715.00, touching the low of ₹666.75 as of 12:25 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.