Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY13 Earnings Presentation
23 slides from Hindalco Industries's earnings presentation, Nov 6, 2012
Slide 1: Q2 FY13 Investor Presentation
Q2 FY13 November 6, 2012 INVESTOR PRESENTATION
Slide 2: Highlights and Financial Performance
HIGHLIGHTS AND FINANCIAL PERFORMANCE 2
Slide 3: Q2, FY13: Highlights
Q2, FY13: Highlights ¾Operational performance sequentially better than Q1FY13 ` Crore Q2FY13 % Increase over Q1FY13 Sales 6 164 6,164 2% EBITDA 515 11% ¾Copper EBIT 2.8x vs. Q1 on the back of ramp-up of production after shutdown ¾Aluminium performance impacted by one-timers ¾Aditya Financial closure
Slide 4: Financial Performance: Q2
Financial Performance: Q2 Change Vs Change Vs ` Cr Q2 FY13 Q1 FY13 Q2 FY12 Q1 FY13% Q2 FY12 % Net Sales 6 164 6,164 6028 2% 6 272 6,272 (1 7) (1.7) PBITDA 648 765 (15%) 845 (23.3) EBITDA 515 463 11% 660 (22%) PBT 447 513 (13%) 604 (26.0) PAT 359 425 (16%) 503 (28.4) EPS (`) 1 87 1.87 2 22 2.22 (16%)
Slide 5: Global economy: Clouds persist
Global economy: Clouds persist Global Manufacturing PMI World Aluminium consumption 60 Consumption growth (%) 55 15.2 2011 2012 (Est) 9.7 50 8.0 8.7 Below 50 for last 5 months 4.9 5.4 3.9 45 0 0 0 1 2 Apr-12 2 2 Jan-10 Apr-10 Jul-10 0 Oct-10 Jan-11 1 Apr-11 1 Oct-11 1 Jan-12 Jul-12 2 Oct-12 Jul-11
Slide 6: LME still under pressure
LME still under pressure 2800 LME – Al ($/t) Despite higher ingot premia, 2700 ~30% of the capacity making 2600 losses at current LME 2500 2400 Though Th h western t world ld curtailed production (~2mn 2300 1,975 tons) this year, Chinese 2200 production growth has kept 2100 the market in surplus
Slide 7: Rising Premium providing some succor
Rising Premium providing some succor 300 250 US Midwest Japan 200 Europe (Duty paid) 150 100 50 0 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Jul-12 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-12 But could not offset the negatives fully … 7
Slide 8: Q2: External drivers remained adverse
Q2: External drivers remained adverse 2,400 LME ($/t) 2,089 2,177 1,977 1,922 LME lower… Firmness in regional premia Q2 FY12Q3 FY12Q4 FY12Q1 FY13Q2 FY13 was a supporting factor (Q2 yoy) Input Costs (Q2, >30% >15% Continued cost pressures >10% C l Coal C Caustic ti F Furnace Oil 8
Slide 9: Q2: Operationally A Challenging Quarter
Q2: Operationally A Challenging Quarter One off issues impacted the operations Production loss at both Renukoot & Hirakud VAP also l got g t impacted i t d due d tot supply l chain disturbances Lower efficiency dragged financial performance in an extremely inflationary environment Copper p
Slide 10: Performance Review: Aditya Birla
ADITYA BIRLA PERFORMANCE REVIEW:
Slide 11: Al: Subdued Production
Al : Subdued Production… Quarterly Half yearly H1 143 128 132 293 260 Q2 FY13 Q1FY 13 Q2 FY12 H1 FY13 H1 FY12 Alumina (kt) Alumina (kt) 328 335 332 663 667 Q2 FY 13 Q1 FY 13 Q2 FY12 H1 FY13 H1 FY12 11
Slide 12: Al: Financial Performance
Al: Financial Performance Net Sales (` Crore) EBIT (` Crore) 4,167 4,306 1,028 2,105 2,063 440 270 170 Q2 Q1 H1 H1 Q2 Q1 H1 H1 FY13 FY13 FY13 FY12 FY13 FY13 FY13 FY12 Cost push, lower volumes, disruption-related efficiencies ffi i i & lower l LME 12
Slide 13: Cu: Output ramped up after shutdowns
Cu: Output ramped up after shutdowns Cathode Output (kt) DAP Output (kt) 78 58 75 54 69 28 Q2 FY13 Q1 FY13 Q2 FY12 Q2 FY13 Q1 FY13 Q2 FY12 There were three annual shutdowns ((Cu-I,, Cu-III,, Fertilizer plant) in Q1 13
Slide 14: Cu: Financial Performance
Cu: Financial Performance Net Sales (` Crore) EBIT (` Crore) 284 293 8,038 8,002 209 4,066 3,972 76 Q2 Q1 H1 H1 Q2 Q1 H1 H1 FY13 FY13 FY13 FY12 FY13 FY13 FY13 FY12 On sequential basis EBIT up 2.8X 14
Slide 15: Segment Results – Q2
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Slide 16: Projects Update
~| ~ PROJECTS UPDATE
Slide 17: Mahan Aluminium
Mahan Aluminium Smelter View Pot line ready TG-1 Ready for commissioning 9 Coal block Stage-I FC received 17
Slide 18: Utkal Alumina
Utkal Alumina Refinery View Commissioning of DG Gearing up for commissioning g 18
Slide 19: Aditya Aluminium
Aditya Aluminium Pot Room Cathode Sealing Shop: Commissioned O i CPP Overview First draw-down of the loan in September Work in full steam 19
Slide 20: Hirakud FRP
Hirakud FRP Cold Mill: Commissioned Finishing line Hot Mill Hot mill erection completed; commissioning to begin soon 20
Slide 21: Near-term Outlook
Near-term Outlook Aluminium operations stabilizing; full return to normalcy expected in Q4 only With downside risks to LME, continued cost pressures and resource availability challenges, external environment remains rough Key projects into the last lap; Depreciation and interest will depress net inc
Slide 22: Thank you
ADITYA BIRLA ie? Jada HINDALCO Thank you
Slide 23: 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 statements regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a differ