2 November 2018 Hindalcos (HNDL) NSU (Novelis + SA + Utkal) EBITDA increased 4% QoQ (+19% YoY) to INR41.7b, led by the continuously improving operating performance of Novelis and the strong performance of copper smelter, partially offset by the Indian aluminum business. Adjusted NSU PAT grew 6% QoQ (+61% YoY) to INR17b. EBITDA of the Indian business (SA + Utkal) declined 6% QoQ (+8% YoY) to INR17.5b due to lower LME and higher CoP for aluminum. Despite the 33-day maintenance shutdown, copper EBITDA grew 16% QoQ to INR3.9b, led by stronger prices of by-products (sulfuric acid, DAP, etc.) and VAP premiums. Adj. EBITDA increased 7% QoQ (+18% YoY) to USD355m, while EBITDA per ton grew 6% QoQ (+17% YoY) to USD440, driven by a better product mix and favorable recycling spreads (between metal and scrap prices). Tailwind of recycling spreads may not sustain for long, yet EBITDA per ton of USD400/t is sustainable.