Hindalco Industries experienced a nearly 7% decline in its shares as a result of Constellium SE's stock dropping by 28% due to disappointing quarterly results.
Constellium, a global manufacturer headquartered in Paris, reported a decrease in third-quarter profit and revenue, citing weak demand across various end markets and disruptions caused by flooding at its Swiss facilities.
The company's shipments were particularly affected in the automotive and aerospace sectors, where demand remains sluggish. This decline has raised concerns for Hindalco's subsidiary, Novelis, which contributes 20% of Hindalco's total volumes and a significant portion of its EBITDA, as investors worry about potential similar challenges in the future.