Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY2018 Earnings Presentation
33 slides from Hindalco Industries's earnings presentation, May 16, 2018
Slide 1: Hindalco Industries Ltd Earnings Presentation Q4 & FY2018
Hindalco Industries Ltd Earnings Presentation Fourth Quarter & Full Year 2018 May 16, 2018 Hindalco Industries Ltd Excellence by Design 1
Slide 2: 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 3: Agenda
Agenda 1 Overview : Full Year 2018 & Q4 FY18 • Aluminium 2 Economy & Industry Updates : Global & Domestic 3 Result Highlights : Operational Performance - Full Year & Q4 • Copper 4 Result Highlights : Financial Performance - Full Year & Q4 • Novelis Inc. 5 Appendix Hindalco Industries Ltd Excellence
Slide 4: Overview: Fourth Quarter and Full Year 2018
Overview : Fourth Quarter and Full Year 2018 Hindalco Industries Ltd Excellence by Design 4
Slide 5: Key Highlights – FY18 Overview
Key Highlights – FY18 Overview Hindalco (Consolidated) ▪ Consolidated PAT trebled to Rs 6,083 crore ▪ Consolidated PBT (Before Exceptional Items) almost doubled at Rs. 6,508 crore ( up 94% vs FY17) ▪ Highest Ever Consolidated EBITDA at Rs. 15,025 crore (up 11% vs FY17) ▪ Highest Ever Copper & Alumin
Slide 6: Key Highlights – FY18 Overview Contd
Key Highlights – FY18 Overview ……Contd HIL Aluminium (plus Utkal) ▪ Record production of Aluminium at 1,291 Kt and Alumina at 2,881 Kt in FY18 as plants continue to operate at designed capacities and stable efficiencies ▪ EBITDA at Rs. 4,790 Crore up by 17% vs Rs. 4,094 Crore in FY17 due to improved
Slide 7: Economy & Industry: Global & Domestic
Economy & Industry : Global & Domestic Hindalco Industries Ltd Excellence by Design 7
Slide 8: Economy Updates
Economy Updates Global Economy ▪ Global economy grew by 3.8% in CY2017, the fastest since 2011. According to IMF, supportive financial conditions is expected to drive global growth to a 3.9% in both CY2018 and CY2019. ▪ In Q4 CY17, US GDP increased by 2.9%, driven by consumer spending which accelera
Slide 9: Aluminium Industry Overview
Aluminium Industry Overview Aluminium Prices Trend (USD/t) ▪ Significant volatility has been witnessed in the LME price of 2012 2102 2159 aluminium in Q1 CY18 on account of fear arising from the 1851 1909 1710 1516 1572 1620 global trade war and sanctions imposed on Rusal by the US ▪ US imposed 10%
Slide 10: Domestic Aluminium Industry Drivers
Domestic Aluminium Industry Drivers • In Q4 FY18, LME recorded a growth of 21% year on year. • Rupee appreciation by 4% in FY18 as against FY17 narrowed the impact of higher LME • In FY18 MJP premium increased to USD 111/t in FY18 from USD 94/t in FY17. • Premium in Q1 FY19 is expected at USD 130/t
Slide 11: Copper Industry – Overview and Drivers
Copper Industry – Overview and Drivers • Global refined copper market is expected to grow around 3.1% yoy to 23 MnT in CY18. • Global mine production is expected to grow by 1.4% to 17 MnT in CY18 • Annual benchmark TC/RC moderated by 11% for CY18. At present, spot TC/RC is at lower level due to fear
Slide 12: Novelis - Market & Industry Outlook
Novelis -Market & Industry Outlook Beverage Can (in MT) Automotive (in MT) Specialties (in MT) Market has grown by over 4% CAGR (2010-17) Market has grown by 76% CAGR (2010-17) Market has grown by 5% CAGR (2010-17) Novelis Market Share FY18 : 34% Novelis Market Share FY18 : 45% Novelis Market Share
Slide 13: Result Highlights: Operational Performance - Q4 & FY18
Result Highlights : Operational Performance - Q4 & FY18 Hindalco Industries Ltd Excellence by Design 13
Slide 14: Operational Performance: Aluminium
Operational Performance : Aluminium Hindalco Industries Ltd Excellence by Design 14
Slide 15: Production – Alumina, Metal & VAP
Production – Alumina, Metal & VAP Alumina (Inc. Utkal) KT Aluminium Metal (KT) VAP incl. Wire Rod (KT) 1,266 1,291 481 479 2,886 2,881 317 323 320 125 123 123 709 734 710 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 • Alumina production is con
Slide 16: Operational Performance: Copper
Operational Performance : Copper Hindalco Industries Ltd Excellence by Design 16
Slide 17: Production – Copper & VAP
Production – Copper & VAP Cathode (KT) CC Rod (KT) DAP (KT) 410 376 150 156 301 205 111 101 105 41 38 38 62 57 30 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 • Highest ever Cathode Production in • CC Rod production up 4% in FY18 • DAP product
Slide 18: Operational Performance: Novelis Inc.
Operational Performance : Novelis Inc. Hindalco Industries Ltd Excellence by Design 18
Slide 19: Novelis Inc. - Operational Performance
Novelis Inc. - Operational Performance Overall Shipments (KT) • Strategic focus on driving operational excellence and product 3,067 3,188 portfolio shift helps maintaining its market leadership • Overall volumes increased by 4% in FY18 to 3.2 mn MT 4% • Aluminium Auto sheet demand continued to be ro
Slide 20: Result Highlights: Financial Performance - Q4 & FY18
Result Highlights : Financial Performance - Q4 & FY18 Hindalco Industries Ltd Excellence by Design 20
Slide 21: Financial Performance – HIL Standalone (plus Utkal)
Financial Performance – HIL Standalone (plus Utkal) Revenue (Rs. Crore) EBITDA (Rs. Crore) 43,451 7,154 39,724 6,441 11% 11,817 11,044 11,681 1,786 1,861 1,807 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 PBT (before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore)
Slide 22: Financial Performance – HIL Aluminium (plus Utkal)
Financial Performance – HIL Aluminium (plus Utkal) Revenue (Rs. crore) EBITDA (Rs. crore) 20,327 21,089 4,790 4,094 11% 17% 5,618 5,345 5,513 1,135 1,188 1,265 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 • EBITDA is up by 11% in Q4 FY18 and 17% in FY18 compared to previous ye
Slide 23: Financial Performance – Copper
Financial Performance – Copper Revenue (Rs. crore) EBITDA (Rs. crore) 22,371 1,539 19,408 1,456 6% 6,202 6,170 497 5,701 421 329 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 • Revenue were up in FY18 due to higher volumes and better realizations . • EBITDA for FY18 is higher b
Slide 24: Financial Performance - Novelis Inc.
Financial Perfromance - Novelis Inc. Revenue (USD billion) Adjusted EBITDA* (USD million) 11.5 1,215 9.6 1,085 9% 17% 12% 20% 3.1 292 305 319 2.6 2.9 Q4 FY17 Q3 FY18 Q4 FY18 FY 17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY 17 FY18 • Record Revenues up by 20% to $11.5 billion in FY18 vs $9.6 bn in FY17 ; $ 3.1
Slide 25: Financial Key Figures – HIL (Consolidated)
Financial Key Figures – HIL (Consolidated) Particulars FY17 FY18 Change % (Rs. Crore) Revenue from Operations 1,02,631 1,15,809 Business EBITDA Aluminium 4,033 4,692 16% Copper 1,438 1,594 11% Novelis 7,194 7,903 10% Other Income 894 836 -6% Total EBITDA 13,558 15,025 11% Finance Costs 5,742 3,911 -
Slide 26: Sustainable Performance
Sustainable Performance Sustainable Operational ○ Sustainable performance on the back of stable plant operations along with supporting macros Performance ○ Significant reduction in Interest cost on account of pre-payment and repricing of the existing project loans in Optimized Finance Costs India op
Slide 27: Thank You
THANK YOU Hindalco Industries Ltd Excellence by Design 27
Slide 28: Appendix
Appendix Hindalco Industries Ltd Excellence by Design 28
Slide 29: Sales Volumes – Aluminium & Copper
Sales Volumes – Aluminium & Copper Aluminium Metal sales in all form (KT) Copper Sales (KT) 1,247 1,274 407 375 2% 8% 328 325 321 114 102 108 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 ▪ Aluminium Volumes are up by 2% ▪ The Copper Sales volumes are up by 8% in FY18 to 407 kt
Slide 30: Financial Key Figures - HIL Standalone (plus Utkal)
Financial Key Figures - HIL Standalone (plus Utkal) Particulars Q4 FY17 Q3 FY18 Q4 FY18 YOY FY17 FY18 YOY (Rs. Crore) Change % Change % Revenue from Operations 11,817 11,044 11,681 39,724 43,451 Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium (includes Utkal) 1,135 1,188 1,265 11% 4
Slide 31: Financial Key Figures - HIL (Standalone)
Financial Key Figures - HIL (Standalone) YOY Change YOY (Rs. Crore) Particulars Q4 FY17 Q3 FY18 Q4 FY18 FY17 FY18 % Change % Revenue from Operations 11,747 11,028 11,681 39,383 43,435 Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium 918 945 920 0% 3,473 3,708 7% Copper 497 421 329 -3
Slide 32: Awards & Recognitions – 2017-18
Awards & Recognitions – 2017-18 ▪ 7th Asia Best CSR Practices Awards 2017 in the category of Community Development Project of the Year, by World CSR Day ▪ ET NOW – CSR Leadership Award under Community Development category - Belagavi Unit ▪ Silver Certificate of Merit by Frost & Sullivan & FICCI Indi
Slide 33: For Further Queries Please Contact: Subir Sen, Investor Relations
For Futher Queries Please Contact : Registered Office Subir Sen, Ahura Centre, 1st Floor, B Wing Investor Relations Mahakali Caves Road Andheri (East), Mumbai 400 093 Telephone- +91 22 6662 6666 Telephone- +91 22 6691 7000 E mail: hilinvestors@adityabirla.com Website: www.hindalco.com Website: www.h
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