Shares of Aditya Birla Group company Hindalco Industries gained as much as 2% to their day's high of Rs 1,067 on the BSE on Wednesday after its US subsidiary Novelis said it plans to restart the hot mill at its Oswego facility in the United States earlier than initially expected, even as it anticipates a bigger hit to cash flows from the fires at the plant. Novelis also said it expects higher savings from its cost-reduction initiatives over the medium term.Novelis reported a net loss of $84 million for the fourth quarter, compared with a net profit of $294 million in the year-ago period.Novelis expects capital expenditure for FY27 to be in the range of $2.1 billion to $2.4 billion, including around $350 million towards maintenance capex. The company also said it expects to return to positive free cash flow by the end of the current financial year.The company exited FY26 with over $200 million run rate in cost savings from the global cost efficiency programme. It is targeting for that number to reach $300 million in FY27 and to $350 million - $400 million by the end of FY28. The fires at the Oswego facility impacted rolled product shipments by 73 kilotonnes, resulting in a 12% year-on-year decline in shipments to 844,000 tonnes. Despite lower volumes, quarterly net sales rose 4% from a year earlier to $4.8 billion, supported mainly by higher aluminium prices. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) declined 3% year-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,” CEO Steve Fisher said.Novelis had reported two separate fire incidents at the Oswego unit last year. Following the first fire in September, the company had estimated a $550-650 million impact on free cash flow in FY26. After the second fire in November, the estimate was raised to $1.3-1.6 billion.On Tuesday, the company further increased the estimated cash flow impact to $1.7 billion. “This increase primarily reflects higher repair costs versus our preliminary estimates and incremental costs to minimise customer disruption,” Fisher said.Despite the company’s positive outlook, rising debt levels remain a concern. Net debt at the end of the quarter stood at $6,724 million, compared with $5,176 million a year ago and $6,204 million in the previous quarter.Sensex, Nifty today: Catch all the LIVE stock market action here (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)