Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY24 Earnings Presentation
39 slides from Hindalco Industries's earnings presentation, Feb 13, 2024
Slide 1: Hindalco Industries Ltd Q3 FY24 Earnings Presentation
Hindalco Industries Ltd Q3 FY24 Earnings Presentation 13th Feb 2024
Slide 2: Safe Harbour
SAFE HARBOUR Certain statements in this report may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations incl
Slide 3: Contents
Contents 1. Sustainability Updates 2. Financial performance at a glance 3. Economy & Industry Updates – Global & Domestic 4. Business Performance • Consolidated • Novelis • Aluminium : Upstream Business • Aluminium : Downstream Business • Copper 5. Summary – Key Takeaways 6. Annexures : • Consolidat
Slide 4: Sustainability Updates
Sustainability Updates
Slide 5: Hindalco in S&P Global Sustainability Yearbook 2024
Hindalco in S&P Global Sustainability Yearbook 2024 The S&P Global Sustainability Yearbook 2024 got released in Feb 24. Hindalco is in the Top 1% S&P Global ESG score in the Aluminium Industry. Only 2 Indian companies are in the Top 1% S&P Global ESG score Total of 66 Companies in Top 1% across all
Slide 6: Hindalco India Business: Sustainability @Core
Hindalco India Business: Sustainability @Core Greenbelt and Biodiversity Workforce Health & Safety • All season BMP study completed for additional 4 • Serious Injury Fatality (SIF) prevention sites in Q3FY24; as on date BMP study at 20 sites programme implemented across Hindalco already completed Bi
Slide 7: Hindalco: ESG metrics in Waste, Water, GHG, LTIFR & Fatality
Hindalco : ESG metrices in Waste, Water, GHG, LTIFR & Fatality % Recycling of Bauxite Residue/ Red mud % Recycling of Ash Aluminium Specific GHG Emissions (except from Utkal Refinery) (t CO2e/t) 107% 107% 106% 118% 107% 79% 19.76 19.74 95% 19.30 19.46 88% 9M FY21 9M FY22 9M FY23 9M FY24 9M FY21 9M F
Slide 8: Financial Performance at a glance
Financial Performance at a glance
Slide 9: Quarterly Financial Performance at a Glance - YoY (Q3 FY23 Vs Q3 FY24)
Quarterly Financial Performance at a Glance - YoY (Q3 FY23 Vs Q3 FY24) Particulars UOM Q3 FY23 Q3 FY24 Change YoY Revenue ₹ in Cr 53,151 52,808 -1% Business Segment EBITDA ₹ in Cr 5,142 6,985 36% EBITDA ₹ in Cr 3,930 6,322 61% Consolidated PAT ₹ in Cr 1,362 2,331 71% Shipments Kt 908 910 - Revenue $
Slide 10: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic
Slide 11: Economy Updates
Economy Updates Global GDP Growth (% YoY) 10.3 India GDP Growth (% YoY) 6.0 5.4 8.5 8.7 8.0 8.3 8.3 4.3 7.4 7.0 7.2 7.3 7.0 3.9 6.6 6.4 3.5 3.5 3.6 3.5 3.4 3.6 3.5 5.5 3.0 2.9 3.1 3.1 3.9 4.2 CY23F CY24F CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 -0.1 FY09 FY10 FY11 F
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price Aluminium (Cash-$/Ton) Production Consumption Metal Balance 3% 4% 1% 3% 3,280 68.9 70.6 17.4 18.1 69.3 70.1 17.3 17.9 (0.4) 0.6 0.1 0.3 2,875 2,395 2,354 2,324 2,258 2,190 2,154 40.1 41.5 40.8 42.8 1.9 28.8 29.1 10.
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 1000 1173 1163 1130 1147 1335 1269 263 259 218 196 213 211 164 504 470 453 477 410 428 418 502 490 506 508 568 541 418 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q3 FY24, the domestic de
Slide 14: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ Global FRP Demand is estimated to grow by ~4% in CY24 (vs CY23 decline of 4%). Beverage Packaging Automotive Speciality Aerospace ▪ Supply chain inventory ▪ Demand broadly remains ▪ Demand broadly moves with ▪ Strong growth in aircraft build reduction
Slide 15: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) Balance (MT) 3.7% 0.4% -0.6% 2.4% 24.7 25.6 6.7 6.7 24.9 25.4 6.4 6.3 (0.2) 0.2 0.3 0.3 10.6 11.5 13.6 14.5 2.8 3.1 1.1 1.0 -3.0 -2.9 -0.8 -0.7 14.1 14.0 2.8 2.9 11.3 11.0 3.6 3.6 3.9 3.8 2.8 2.7 CY22 CY23
Slide 16: Domestic Copper Industry
Domestic Copper Industry Market Demand (kT) 196 194 201 198 187 190 173 45 49 54 57 56 64 33 140 142 141 142 137 145 133 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Domestic Supply Import ▪ In Q3 FY24, market demand increased by ~4% YoY at 198 kt vs 190 KT in Q3 FY23. ▪ On a sequential b
Slide 17: Consolidated Financial Performance
Consolidated Financial Performance
Slide 18: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 167,345 18,313 18,527 159,968 53,151 54,169 52,808 6,096 6,322 3,930 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 PBT after Exceptional Items (₹ Crore) PAT (₹ Crore) 10,402 9,876 7,686 6,981 3,23
Slide 19: Consolidated Debt and leverage
Consolidated Debt and leverage (₹ Crores) Particulars As on As on As on As on As on (Consolidated) 31-Dec-22 31-Mar-23 30-Jun-23 30-Sep-23 31-Dec-23 Gross Debt 59,720 58,337 57,382 56,578 53,402 Treasury Balance 18,004 24,378 18,919 18,965 18,566 Net Debt 41,716 33,959 38,463 37,613 34,835 TTM Adjus
Slide 20: Novelis
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Slide 21: Novelis: An Overview
Novelis : An Overview Overall Shipments (Kt) ▪ Shipments at 910 Kt due to softer market demand, impacted by seasonality, but more than offset by recovery in beverage packaging and automotive demand 2,854 2,722 ▪ Adjusted EBITDA and EBITDA per ton in Q3 FY24 was higher by 33% YoY, driven by favorable
Slide 22: Novelis Financial Performance
Novelis Financial Performance Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 14.1 1,408 519 499 493 499 12.1 1,359 376 484 454 4.2 4.1 3.9 341 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 ▪ Net sale
Slide 23: Aluminium Upstream Performance
Aluminium Upstream Performance
Slide 24: Aluminium Upstream (India)
Aluminium Upstream (India) Shipments (Kt) Revenue (₹ Crore) 1,008 996 ▪ Shipments were 333 kt, down 1% YoY 251 254 24,960 23,913 ▪ Revenues were down 1% YoY due to 336 334 333 745 754 8,046 7,971 impact of lower metal prices 7,878 81 89 79 256 245 254 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23
Slide 25: Aluminium Downstream Performance
Aluminium Downstream Performance
Slide 26: Aluminium Downstream (India)
Aluminium Downstream# (India) Shipments (Kt) Revenue (₹ Crore) ▪ In Q3 FY24 shipments was flat YoY 8,271 due to subdued domestic demand. 7,611 264 265 ▪ In Q3 FY24 Revenue was ₹2,547 2,647 2,629 2,547 crore, down by 4% YoY on account of 91 94 90 lower realizations and volumes. Q3 FY23 Q2 FY24 Q3 FY2
Slide 27: Copper Performance
Copper Performance
Slide 28: Copper
Copper Shipments : Copper Metal (Kt) Shipments : CC Rods (Kt) ▪ Metal shipments at 119kt up 9% YoY 371 291 322 252 in line with market demand. 134 119 100 109 88 93 ▪ CC Rod shipments at 93Kt, up 6% YoY Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 ▪ Revenues were u
Slide 29: Summary
Summary
Slide 30: Key Takeaway and Way Forward
Key Takeaway and Way Forward Copper delivered continued its Novelis delivered Resilient India Business best ever performance Nearly $500 EBITDA/ton in Q3 • Strong balance sheet, an enabler • All time high EBITDA in Q3FY24 • Delivered Adjusted EBITDA of for organic growth • Focus on VAP expansion : $
Slide 31: Thank You
Thank You For Further Queries Please Contact : Subir Sen, Investor Relations Telephone +91 22 6662 6666 E mail: hilinvestors@adityabirla.com Website: www.hindalco.com Registered Office 21st Floor, One Unity Centre, Senapati Bapat Marg, Prabhadevi, Mumbai – 400013 Telephone:- 91 22 6947 7000 Website:
Slide 32: Annexures
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Slide 33: Quarterly Financial Performance at a Glance - QoQ (Q2 FY24 Vs Q3 FY24)
Quarterly Financial Performance at a Glance - QoQ (Q2 FY24 Vs Q3 FY24) Particulars UOM Q2 FY24 Q3 FY24 Change QoQ Revenue ₹ in Cr 54,169 52,808 -3% Business Segment EBITDA ₹ in Cr 6,896 6,985 1% EBITDA ₹ in Cr 6,096 6,322 4% Consolidated PAT ₹ in Cr 2,196 2,331 6% Shipments Kt 933 910 -2% Revenue $
Slide 34: Consolidated: Key Financials
Consolidated : Key Financials Change QoQ Change Particulars (₹ Crore) Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 YoY % Change % YoY % Revenue from Operations 53,151 54,169 52,808 -1% -3% 167,345 159,968 -4% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 2,848 3,998 3,783 33
Slide 35: Hindalco (India) Business: Key Financials
Hindalco (India) Business : Key Financials YOY QoQ Particulars (₹ Crore) Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Change % Change % Change% Revenue from Operations 19,431 21,103 20,766 7% -2% 58,127 62,099 7% EBITDA Aluminium - Upstream 1,591 2,074 2,443 54% 18% 6,210 6,452 4% Aluminium - Downstream
Slide 36: Aluminium (India) Business: EBITDA and Sales Reconciliation
Aluminium (India) Business : EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars (in Rs Cr) Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 EBITDA - Upstream 1,591 2,074 2,443 6,210 6,452 EBITDA - Downstream 157 171 103 515 421 Intersegment Profit /(Loss) Elimination (Net) 101 (1) (47) 472
Slide 37: Production Trends
Production Trends Aluminium Upstream (Kt)* Aluminium Downstream# (Kt)* • Aluminium Upstream Production were 334 kt, flat YoY 993 999 266 267 • Aluminium Downstream Production 335 334 334 were at 89 kt, flat YoY 88 94 89 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24
Slide 38: Production – Total Alumina
Production – Total Alumina Alumina* (KT) 2,664 2,699 885 882 961 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 ▪ Total Alumina production was up 9% YoY ▪ Of this production at Utkal Alumina refinery at 651 Kt in Q3 FY24, up 10% YoY *Hydrate as Alumina 38
Slide 39: Q3 FY24: Earnings Concall
Q3 FY24 : Earnings Concall Earnings Conference Call is scheduled at 4:00 PM (IST) on February 13, 2024. The dial in numbers for the call are given below Location: ACCESS NUMBER Universal Access (India) Primary Number (+) 91 22 6280 1303 Secondary Number (+) 91 22 7115 8204 International TollFree Num