Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY13 Earnings Presentation
24 slides from Hindalco Industries's earnings presentation, Aug 14, 2012
Slide 1: Investor Presentation Q1 FY13
ADITYA BIRLA HINDALCO Investor Presentation Qi FY13 August 14, 2012
Slide 2: Highlights and Financial Performance
HIGHLIGHTS AND FINANCIAL PERFORMANCE 2
Slide 3: Performance Highlights
Performance Highlights Stable Revenues despite sharp fall in LME and lower volumes,…. Rupee depreciation too helped … Sharp rise in input costs adversely impacted margins Planned Shutdown in copper business and temporary disturbances in Aluminium smelters impacted production volumes 3
Slide 4: Financial Performance
Financial Performance Q1 Q1 Change ` Cr FY12 FY13 (%) Net Sales 6,031 6,028 … PBITDA 1,045 765 (26.8) PBIT 870 594 (31.7) PBT 803 513 (36.2) PAT 644 425 (34.0) EPS (`) 3.36 2.22 Other income up by `123 crore due to higher dividend and higher treasury income 4
Slide 5: Q1: A Challenging Quarter
Q1: A Challenging Quarter Industry LME (Al) down 24% yoy Cost for ~1/3rd of smelters worldwide above LME; ~2 mtpa capacity closed Company Grid problems affected potlines at Renukoot and Hirakud Drought conditions led to stoppage of Muri factory for 16 days Dahej smelters & fertilizer plant
Slide 6: LME deep down into the cost curve
LME deep down into the cost curve • Macro concerns • Overhang of inventory: ~ 89 days at present • Lack of closures in China due to higher SHFE and power subsidies 2900 Aluminium LME ($/t) 2700 2500 Though current situation is 2300 2100 unsustainable, it may take time to 1900 improve 1700 1,874 1500
Slide 7: Performance review: Aluminium
Performance review: Aluminium 7
Slide 8: Key External Drivers (negatives outweighed positives)
Key External Drivers (negatives outweighed positives) Aluminium LME ($/t) Other Drivers 2,603 (vis-à-vis year-ago period) Q1 FY13 1,977 Coal FO and carbon Q1 FY 12 Q1 FY13 costs Exchange Rate (`/$ ) Copper TCRC Sulfuric Acid realization 44.71 54.11 Severe cost push across the businesses Q1 FY12 Q1 F
Slide 9: Al: Production Performance
Al: Production Performance Alumina output maintained despite Muri … But VAP output was optimized setback; Metal output affected by the disruptions … Alumina (kt) (Tonnes) 50,816 335 335 FRP 57,827 14% Q1 FY12 Q1 FY13 (Alupuram plant was shut in Q1 FY12) 7,321 6% Metal (kt) Extrusions 8,886 140 21% 1
Slide 10: Al: Financial Performance
Al: Financial Performance Net Sales (` Crore) EBIT (` Crore) 2,499 599 2,093 2,063 484 270 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 LME, volumes, disruption-related efficiencies Product mix 10
Slide 11: Performance review: Copper
Performance review: COPPER 11
Slide 12: Cu: External factors were mixed
Cu: External factors were mixed YOY Impact TCRC (c/lb) LME ($/t) Exch. Rate (`/$) Acid Price (`/t) Coal cost (`/t) 12
Slide 13: Cu: Production
Cu: Production Cathode Output (KT) DAP Output (KT) 73 69 47 28 Q1 FY12 Q1 FY13 Q1 FY12 Q1 FY13 Cathode Output DAP Output 13
Slide 14: Cu: Financial Performance
Cu: Financial Performance Net Sales (` Crore) EBIT (` Crore) 293 5,154 3,940 3,972 145 76 Q1 FY12 Q4 FY12 Q1 FY13 Q1 FY12 Q4 FY12 Q1 FY13 Shutdown impact, lower acid realization, higher energy costs Better TCRC 14
Slide 15: Segmental Information
Segmental Information C.E 26% 19% 55% Rs. 32k Cr Net Sales 34% 66% Rs. 6 k cr EBIT 78% 22% Rs. 346 cr Aluminium Copper Greenfield
Slide 16: Projects update
Projects update 16
Slide 17: Mahan Aluminium
Mahan Aluminium Pot Room Rodding Shop Power Plant View 17 Gas Treatment Center
Slide 18: Utkal Alumina
Utkal Alumina Erection of Rod Mill Security Filter Precipitation tanks CPP Overview 18
Slide 19: Aditya Aluminium
Aditya Aluminium Pot Room Electric Panels Pot Room Cathode Sealing Shop 19
Slide 20: Summing Up
Summing Up Aluminium industry margins are under unprecedented pressure; no immediate relief seen Continuing effect of pot-line disturbances likely in Q2; Projects-related depreciation and interest to pressure bottom-line Our priority will be to squeeze every opportunity to leverage available levers
Slide 21: Forward Looking & Cautionary Statement
Forward Looking & Cautionary Statement 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
Slide 22: Thank you
Thank you
Slide 23: Aluminium Sales
Aluminium Sales Sales Volume Units Q1 FY12 Q1 FY13 Chemicals Mt 57874 54373 Primary Metal Mt 78923 66310 FRP+Foils Mt 44931 49165 Extruded Products Mt 7146 8391 Sales Revenue Rs Cr Q1 FY12 Q1 FY13 Primary 988 820 Downstream 865 949 Others 240 293
Slide 24: Copper Sales
Copper Sales Sales Volumes Unit Q1 FY12 Q1 FY13 Copper Cathodes MT 38188 34292 CC Rods (Own) MT 35396 36532 Sales Unit Q1 FY12 Q1 FY13 Copper Cathodes Rs Crore 1606 1488 CC Rods Rs Crore 1553 1630 Others Rs Crore 782 855