Hindalco shares slump up to 7%; here is what spooked investors 

Constellium reported lower third-quarter profit and revenue as the company faced weakening demand across several end markets and impacts from flooding at its Swiss facilities.

The Paris-based company posted net income of €3 million ($3.2 million) for the quarter, down sharply from €64 million in the same period last year. Adjusted earnings per share came in at €0.02, missing analyst estimates of €0.42.

Revenue fell 5% year-over-year to €1.6 billion, below the consensus forecast of €1.85 billion. Shipments declined 5% to 352,000 metric tons.

"Our team faced significant challenges in the third quarter, including increased demand weakness across several of our end markets and the ongoing impact from the flood that occurred back in late June at our facilities in the Valais region in Switzerland," said CEO Jean-Marc Germain.

This impacted investor sentiment in India and hence a sharp slide in Hindalco shares. However, the stock recovered from the day's lows and at 10:14 am, the scrip was trading at ₹679.75, down 5.25% on the BSE.

Shares of Hindalco Industries have given 12% returns on a year-to-date (YTD) basis while in the past 12 months, the stock has gained 49%. 

Hindalco Industries is one of the leading aluminium and copper manufacturing companies in India. It is a subsidiary of the Aditya Birla Group. Its headquarters are in Mumbai, Maharashtra.