Novelis (NVL) has reported 950 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $63 million in the quarter, compared with $6 million for the same period last year.
Revenue during the quarter went down marginally by 1.74 percent to $2,313 million from $2,354 million in the previous year period. Gross margin for the quarter expanded 395 basis points over the previous year period to 16.82 percent. Total expenses were 92.09 percent of quarterly revenues, down from 96.26 percent for the same period last year. This has led to an improvement of 417 basis points in operating margin to 7.91 percent.
Operating income for the quarter was $183 million, compared with $88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $251 million compared with $212 million in the prior year period. At the same time, adjusted EBITDA margin improved 185 basis points in the quarter to 10.85 percent from 9.01 percent in the last year period.
"Continued operational efficiencies combined with strong aluminum automotive sheet demand and strategic capacity investments delivered record, sustainable adjusted EBITDA results this quarter," said Steve Fisher, president and chief executive officer for Novelis.
Operating cash flow improves significantlyNovelis has generated cash of $151 million from operating activities during the nine month period, up 15,000 percent or $150 million, when compared with the last year period. The company has spent $122 million cash to meet investing activities during the nine month period as against cash outgo of $296 million in the last year period. It has incurred net capital expenditure of $136 million on net basis during the nine month period, down 51.43 percent or $144 million from year ago period.
The company has spent $65 million cash to carry out financing activities during the nine month period as against cash inflow of $119 million in the last year period.
Cash and cash equivalents stood at $505 million as on Dec. 31, 2016, up 10.50 percent or $48 million from $457 million on Dec. 31, 2015.
Working capital increases sharply
Novelis has recorded an increase in the working capital over the last year. It stood at $367 million as at Dec. 31, 2016, up 191.27 percent or $241 million from $126 million on Dec. 31, 2015. Current ratio was at 1.14 as on Dec. 31, 2016, up from 1.04 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 42 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 46 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 59 days for the previous year period. At the same time, days payable outstanding went up to 70 days for the quarter from 63 for the same period last year.
Debt comes downNovelis has recorded a decline in total debt over the last one year. It stood at $5,067 million as on Dec. 31, 2016, down 6.53 percent or $354 million from $5,421 million on Dec. 31, 2015. Total debt was 62.75 percent of total assets as on Dec. 31, 2016, compared with 63.96 percent on Dec. 31, 2015. Interest coverage ratio improved to 2.73 for the quarter from 1.07 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
