Mumbai: Novelis is expecting an even bigger hit to its cash flows due to the fires at its unit in Oswego, US, even as the company said it will start the hot mill at the site ahead of the original schedule. Separately, the company sees higher savings from its cost-reduction initiatives in the medium term. The subsidiary of Hindalco Industries experienced two separate fires in Oswego last year. Following the first fire in September, it had guided for a $550-650 million impact on free cash flow in FY26, which it raised to $1.3-1.6 billion following the second fire in November.On Tuesday, Novelis raised its estimated cash-flow hit to $1.7 billion. "This increase primarily reflects higher repair costs versus our preliminary estimates and incremental costs to minimise customer disruption," CEO Steve Fisher said.JAN-MAR EARNINGSNovelis incurred a net loss of $84 million for the quarter, compared to a net profit of $294 million a year earlier. The fires at the Oswego unit hit rolled product shipments by 73 kilotonnes. As a result, rolled product shipments fell by 12% on year to 844,000 tonnes.Net sales for the quarter rose 4% on-year to $4.8 billion, largely on account of higher prices of aluminium, partially offset by lower output. Adjusted earnings before interest, tax, depreciation and amortisation or Ebitda for the quarter fell 3% on-year to $459 million."We begin the new fiscal year energised by the strength of the underlying business and confident in our ability to capture strong market demand for high-recycled-content, low carbon aluminium," said Fisher.