Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY10 Earnings Presentation
27 slides from Hindalco Industries's earnings presentation, Aug 15, 2009
Slide 1: Hindalco Industries Limited Performance Review Q1 FY10
Hindalco Industries Limited Performance Review Q1 FY10 Investors Presentation 1
Slide 2: Highlights
Highlights Highest ever quarterly aluminium production-135439 Mt Creditable performance on QOQ basis despite sharp fall in LME Closure of wheel plant Improved sequential performance on the back of higher volumes higher VAP contribution & improved LME Implementation of AS-30 2
Slide 3: Backdrop: Industry Drivers
Backdrop: Industry Drivers Driver Q1 FY09 Q1 FY10 Impact Aluminium LME 2,940 1,485 (49%) ($/ton) Copper LME 8,379 4,716 (44%) ($/ton) Exchange 41.66 48.79 17% Rate(Rs/$) 3
Slide 4: Hindalco Financials – Sequential
Hindalco Financials – Sequential Rs Crores Q4 FY09 Q1 FY10 Change (%) Net Sales 3772 3899 3% EBIDTA 314 758 141% PBT 159 600 277% PAT (without tax write 118 481 308% back) PAT (with tax write back) 268 481 79% EPS 1.58 2.83 79% Q1 FY 10 numbers Post AS 30 Adoption 4
Slide 5: Hindalco Financials - YOY
Hindalco Financials -YOY Rs Crores Q1 FY09 Q1 FY10 Change (%) Net Sales 4648 3899 -16% EBIDTA 949 758 -20% PBT 931 600 -36% PAT 697 481 -31% EPS 5.15 2.83 -45% Q1 FY 10 numbers Post AS 30 Adoption 5
Slide 6: Business Conditions
Business Conditions 1,800 4,500,000 1,700 LME CSP-$/Mt 1,600 1,500 3,500,000 1,400 1,300 2,500,000 1,200 1,100 1,500,000 Exchange Stock= 1,000 Comex+LME+Shanghai 900 500,000 800 1/Dec/08 12/Feb/09 27/Apr/09 8/Jul/09 LME Aluminium prices improved from abysmal levels despite high inventory & little
Slide 7: Improving Domestic Markets
Improving Domestic Markets Electrical & Electronics Building & Construction Consumer Durable Automobile & transport Industrial Machinery Packaging 7
Slide 8: Production performance at a glance
Production performance at a glance (Mt) 135,439 (Mt) Q1 FY09 311917 Q1 FY10 123,885 303477 Alumina Primary Metal 8
Slide 9: Aluminium: Sequential Performance at a glance
Aluminium: Sequential Performance at a glance Change Rs Crores Q4 FY09 Q1 FY10 (%) Net Sales & 1561 1421 -9% Operating Revenue EBIT 163 455 179% Q1 FY 10 numbers Post AS 30 Adoption 9
Slide 10: Aluminium: Y-O-Y Performance at a glance
Aluminium: Y-O-Y Performance at a glance Change Rs Crores Q1 FY09 Q1 FY10 (%) Net Sales & 1943 1421 -27% Operating Revenue EBIT 750 455 -39% Q1 FY 10 numbers Post AS 30 Adoption 10
Slide 11: Copper Business Performance
Copper Business Performance 11
Slide 12: Business Conditions : Copper
Business Conditions : Copper Prices increased despite weak fundamentals Physical demand still suspect Western world demand still declining & showing no immediate signs of improvement Emerging markets showing some signs of demand revival as various government led stimulus packages & thrust on inf
Slide 13: Business Conditions: Copper
Business Conditions: Copper Custom Smelters: Catch 22 situation Higher prices led to increased refined copper production Higher concentrate demand from the smelters Shortage of scrap accentuating demand for concentrate Lower concentrate availability putting pressure on spot TCRC No new mine
Slide 14: Copper: Sequential Performance at a glance
Copper: Sequential Performance at a glance Change Rs Crores Q4 FY09 Q1 FY10 (%) Net Sales & 2213 2480 12% Operating Revenue EBIT 51 156 207% Q1 FY 10 numbers Post AS 30 Adoption 14
Slide 15: Copper: Y-O-Y Performance at a glance
Copper: Y-O-Y Performance at a glance Change Rs Crores Q1 FY09 Q1 FY10 (%) Net Sales & 2707 2480 -8% Operating Revenue EBIT 74 156 110% Q1 FY 10 numbers Post AS 30 Adoption 15
Slide 16: Operating Performance
Operating Performance Q1 2009 VS Q1 FY 2010 Copper Anode 24 % Copper Cathode 32% Copper Rod 20% Sulphuric Acid 12% One of the best operating performance in first quarter of any financial year 16
Slide 17: Project Highlights
Project Highlights 17
Slide 18: Hirakud Smelter and Power Plant Expansion
Hirakud Smelter and Power Plant Expansion Smelter Expansion from 143 ktpa to 155 ktpa Completed Smelter Expansion from 155 ktpa to 206.6 ktpa under progress Soil investigation and survey work completed 80 % of the Boundary wall work completed Contract with GAMI, Technology, license, training, te
Slide 19: Greenfield Project – Mahan Aluminium
Greenfield Project – Mahan Aluminium Land: Cash distribution is in progress, process for govt. land on Coal: Production of Coal likely to start in FY 10 Clearances: Environmental, Rail & Water clearances obtained. Engineering: Basic Engineering is 100% complete & ahead of schedule Ordering
Slide 20: Greenfield Project – Utkal Alumina
Greenfield Project – Utkal Alumina Detailed engineering will be fully completed by Sep’09. On schedule All necessary statutory approvals are in place for construction of Project. Team is in place for the execution of project. Almost all long delivery orders have been placed. L & T, GDCL &
Slide 21: Utkal Alumina
Utkal Alumina L & T : Piling under progress for civil foundations of pipe L & T Fabrication Yard : Gantry crane for fabrication – Load test racks under progress RRCCimney for CPP‐ Raft foundation Stock pile of rolled plates for tankages 21
Slide 22: Greenfield Project – Aditya Smelter & CPP
Greenfield Project – Aditya Smelter & CPP Engineering: Engineering is 23% complete. Ordering: Major turnkey packages orders finalized. Land acquisition is at an advance stage. 1500 acres registered in the name of the company. Boundary wall is under construction and R & R colony planning is goi
Slide 23: Greenfield Project – Aditya Refinery & Mines
Greenfield Project – Aditya Refinery & Mines. Alumina Technology tie up with ALCAN signed. SIA clearance for Alumina Technology received. Land acquisition is at an advance stage. 1250 acres out of 1881 acres registered in the name of company. EPCM for Co-Gen plant awarded to M/s M N Dasturco.
Slide 24: Greenfield Project - Jharkhand Aluminium
Greenfield Project - Jharkhand Aluminium Land Acquisition: 7000 acres of land earmarked till date Topographic, Demographic and Socio-economic surveys completed. CSR activities have been ramped up. Tubed Coal Mine Allotted- Joint venture formed between Tata power and Hindalco. Water – Clearance
Slide 25: Production
Production Production Unit Q1 FY09 Q1 FY10 Alumina MT 303,477 311,917 Metal MT 123,885 135,439 FRP MT 58,617 52,904 Extrusion MT 11,019 8,812 Q1 Production Unit Q1 FY10 FY09 Copper Cathodes MT 60,434 79,782 CC Rods MT 30,165 36,241 25
Slide 26: Segment Results
Segment Results Rs Crores Aluminium Copper Q1 FY09 Q1 FY10 Q1 FY09 Q1 FY10 Net Sales 1,943 1,421 2,707 2,480 EBIT 750 455 74 156 Capital Employed 8,216 8,758 5,714 4,833 26 26
Slide 27: Thank you
Thank you 27