Hindalco Industries shares fall 3% after reports of another fire at Novelis' Oswego plant

Shares of Aditya Birla Group's Hindalco Industries Ltd

. fell as much as 3% on Friday, November 21, after reports of another fire having taken place at its unit Novelis' Oswego plant last month.

There was a major fire that took place in September, while a smaller fire was reported last month as well.

Novelis and its results were an overhang on Hindalco and its financial performance recently. Novelis in its earnings statement projected a cash flow hit between $550 million to $650 million and a loss of $100 million to $150 million on the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) front.

While Hindalco is anticipating a recovery of 70% to 80% of the amount through insurance, Novelis mentioned that there are plans to restart operations at the affected part of the plant by the end of December.

On a standalone basis for the September quarter, Hindalco's revenue increased by 9.5% from last year to ₹24,264 crore.

EBITDA for the quarter grew by 14% from last year, while margins expanded by 50 basis points. EBITDA for both Aluminium and Copper business were ahead of expectations.

Shares of Hindalco are trading 2.2% lower in early trade on Friday at ₹782.45. The stock had ended 1.2% lower on Thursday at ₹800.1. The stock trades near its 52-week high of ₹864.