Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY23 Earnings Presentation
64 slides from Hindalco Industries's earnings presentation, Nov 11, 2022
Slide 1: Outcome of Board Meeting cover letter
11th November, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Dalal Street Plot No. C/1, G Block, Mumbai: 400 001 Bandra Kurla Complex, Bandra (East) Mumbai – 400 051 Scrip Code: 500440 Scrip Code: HINDALCO Banque Internationale A Luxem
Slide 2: Cover letter continuation
The same is also available on our website www.hindalco.com. Further, the Trading Window for dealing in securities shall remain closed until 48 hours from this announcement. The same has been duly communicated to all the Designated Persons. The above is for your information and record. For Hindalco I
Slide 3: Media Release: Hindalco Reports Second Quarter FY23 Results
Media Release Hindalco Reports Second Quarter FY23 Results Resilient performance despite significant headwinds Key Highlights of Q2 FY23 (vs Q2 FY22) ▪ Consolidated revenue at ₹56,176 crore, up 18% YoY ▪ Quarterly consolidated PAT at ₹2,205 crore, down 35% YoY ▪ Quarterly consolidated EBITDA at ₹5,7
Slide 4: Consolidated Financial Highlights for the Quarter and Half Year ended September 30, 2022
Consolidated Financial Highlights for the Quarter and Half Year ended September 30, 2022 (₹ Crore) Particulars Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 Revenue from Operations 47,665 58,018 56,176 89,023 1,14,194 Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 4,100 4,334 4,
Slide 5: Advancing Sustainably
Advancing Sustainably Since 2020, Hindalco has continually been ranked at the top of the aluminium sector for its sustainability-led performance. The DJSI listing takes into account Hindalco’s continual improvements in the space of decarbonisation, zero waste to landfill, zero liquid discharge, life
Slide 6: Copper
Copper Revenue from the Copper Business was ₹9,658 crore this quarter, up 1% YoY, on account of higher volumes in Q2 FY23. EBITDA for the Copper Business was at ₹544 crore in Q2 FY23 compared to ₹352 crore in Q2 FY22, up 55% YoY, on the back of higher domestic sales and improved by-product realizati
Slide 7: Hindalco Industries Limited Q2 FY23
Hindalco Industries Limited Q2 FY23 Earnings Presentation 11th November, 2022
Slide 8: 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 9: Table of Content
Table of Content 1. Sustainability Updates – Q2 FY23 2. Key Highlights – Q2 FY23 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial - Novelis - Aluminium : Upstream Business - Aluminium : Downstream Business • Aluminium - Copper - Consolidat
Slide 10: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 11: ESG Score
2022 S&P Global Corporate Sustainability Assessment (CSA) ESG Score 83 • Hindalco scored ESG score of 83 in the 2022 S&P Global Corporate Sustainability Assessment, an improvement of 10 points over the last year. • Overall score 83/100 (vs 73/100 in 2021) • Environment- 90 • Social dimension-87 • Go
Slide 12: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Environment Total Bauxite Residue except from Utkal Refinery Zero waste to landfill by 2030 111.2% 100.0% 102.3% • 82% of total waste got recycled and reused (w/w of generation) in H1 FY23. • 111% of Bauxite Residue from three out of four
Slide 13: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewables Aluminium Specific GHG Emissions (t CO2e/t) • FY25 Target : 300 MW (200 MW w/o Storage; 100 MW w/storage); Of this 100 MW already 19.78 19.74 19.66 installed till FY22 • Projects Commissioned till H1 FY23 - 9 MW 19.18 • 33 TPH steam + 4 MW Power wit
Slide 14: Business Performance Key Highlights - Q2 FY23
Business Performance Key Highlights - Q2 FY23 Hindalco Industries Limited 8
Slide 15: Key Highlights: Q2 FY23
Key Highlights : Q2 FY23 ▪ Performance impacted by rising input costs and unfavorable macros, partially offset by higher volumes and better realisations ▪ Quarterly EBITDA at ₹5,743 crore (₹8,045 crore), down 29% YoY ▪ Quarterly PAT from continuing operations at ₹2,205 crore (vs ₹3,427 crore) down 3
Slide 16: Key Highlights: Q2 FY23 ...Contd.
Key Highlights : Q2 FY23 ...Contd. ▪ EBITDA at ₹1,347 crore (vs ₹3,128 crore) down 57% YoY, impacted by rising input costs and unfavorable macros; EBITDA margins at 16.4% (vs 42.2%) ▪ EBITDA per ton at $495 (vs $1,207/ton), down 59% YoY. Aluminium ▪ Total shipments of primary aluminium at 341Kt (vs
Slide 17: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 11
Slide 18: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.6 6.0 5.4 9.8 10.3 8.5 8.7 4.3 3.5 3.5 3.6 3.5 3.4 3.9 3.6 6.6 7.4 8.0 8.3 8.3 7.0 7 3.0 3.2 6.4 2.9 2.7 5.5 3.9 4.2 CY16 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY17 CY18 CY19 CY20 CY21 CY22F CY23F -0.1 -3.2 -6.6 ▪ Global gro
Slide 19: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 2% 4% 1% 1% 3,267 50.5 51.6 16.9 17.6 51.5 51.9 17.3 17.5 (0.9) (0.3) (0.4) 0.1 2,882 2,762 2,648 2,400 2,354 30.0 30.1 30.0 0.2 0.3 0.3 29.0 2,096 (0.
Slide 20: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand of Aluminium (in Kt) 908 939 1030 1038 1000 1178 215 161 221 164 188 162 462 450 394 418 381 380 419 422 418 502 340 396 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q2 FY23, the domestic demand is lik
Slide 21: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ Global FRP Demand is estimated to grow by ~3% in CY22 (vs CY21 growth of ~11%). 1. Beverage Cans 2. Automotive 3. Specialities 4. Aerospace • Broadly stable demand for • High levels of pent-up auto • High order backlog in building • Consumer air travel
Slide 22: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 2.0% 6.0% 18.6 19.3 18.2 18.2 8.3 8.6 10.4 10.6 3.0% 8.0% 6.1 6.3 6.1 6.6 3.5 3.5 9.9 10.7 2.7 2.9 7.8 8.0 2.6 2.7 3.5 3.8 YTD CY21 YTD CY22 Q3 CY21 Q3 CY22 YTD CY21 YTD CY22 Q3 CY21 Q3 CY22 China World ex
Slide 23: Domestic Copper Industry
Domestic Copper Industry Domestic Demand (kT) 192 188 172 173 160 162 33 33 45 99 118 43 38 44 124 139 140 143 117 93 74 Q4 FY20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Domestic Supply Import ▪ In Q2 FY23, market demand increased by ~18% YoY at 188 kt vs 160 KT in Q2 FY22. ▪ On a sequential
Slide 24: Business Performance: Q2 FY23
Business Performance : Q2 FY23 Hindalco Industries Limited 18
Slide 25: Novelis
Novelis Hindalco Industries Limited 19
Slide 26: Operational Performance – Novelis
Operational Performance – Novelis Overall Shipments (KT) ▪ Strong quarterly production and shipments, despite challenging headwinds from inflationary pressures, stronger US dollar, and lower metal benefits. 1,941 1,946 ▪ Increasing customer preference for sustainable packaging options are driving hi
Slide 27: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 9.9 1,108 1,067 571 583 571 514 548 8.0 5.1 553 561 4.8 506 4.1 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 ▪ Net sales in Q2FY23 sta
Slide 28: Aluminium: Upstream Performance
Aluminium : Upstream Performance Hindalco Industries Limited 22
Slide 29: Aluminium Upstream Business
Aluminium Upstream Business Production (Kt) Shipments (Kt)* ▪ Production up 3% YoY and Shipments 674 673 were down 3% YoY 641 659 ▪ Revenue was up 11% YoY, with higher 350 333 341 322 327 332 volumes and better pricing ▪ EBITDA at ₹1,347 crore, down 57% YoY in Q2FY23 on account of higher input Q2 FY
Slide 30: Aluminium: Downstream Performance
Aluminium : Downstream Performance Hindalco Industries Limited 24
Slide 31: Aluminium Downstream Business
Aluminium Downstream# Business Production (Kt) Sales (Kt) ▪ In Q2 FY23 production was higher by 168 173 170 172 5% and Sales by 11% YoY. 95 ▪ Revenues were up 13% YoY, with 84 84 88 86 78 higher volumes and better pricing in Q2 FY23 vs Q2 FY22 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 Q2 FY22 Q1 FY23 Q2
Slide 32: Copper
Copper Hindalco Industries Limited 26
Slide 33: Copper Metal & VAP - Production and Sales in Kt
Copper Metal & VAP - Production and Sales in Kt Production : Copper Cathode (Kt) Production : CC Rod (Kt) ▪ Quarterly Cathode Production was 165 105Kt whereas Copper Rods 197 163 114 Production was 86Kt in Q2FY23 up 79 86 100 92 105 70 5% and 23% respectively Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY2
Slide 34: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 20,187 1,109 16,681 9,587 10,529 9,658 565 613 544 352 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 ▪ Revenues were up by 1% YoY in Q2 FY23, on ▪ EBITDA at ₹544 crore in Q2 FY23 compared to account of
Slide 35: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 29
Slide 36: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 1,14,194 14,835 14,383 89,023 8,045 8,640 58,018 56,176 47,665 5,743 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 PBT after Exceptional Items (₹ Crore) PAT from Continuing Operations (₹ Crore) 9,595
Slide 37: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 Gross Debt 66,831 65,817 63,237 64,023 61,536 Cash & Cash Equivalents 18,820 22,084 24,141 21,830 19,473 Net Debt 48,011 43,733 39,096 42,193 42,063 TTM Adjusted EBITDA
Slide 38: Our Strategic Priorities
Our Strategic Priorities Robust Capital Structure Value Enhancing Growth ESG Commitments Portfolio Enrichment Our Approach Our Approach Our Approach Our Approach • Robust approach to • Strong focus on • Focus on ESG by • Advancing from Capital Allocation expanding capacities taking sustainability ma
Slide 39: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 40: Annexures
Annexures Hindalco Industries Limited 34
Slide 41: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 YoY % Change % YoY % Revenue from Operations 47,665 58,018 56,176 18% -3% 89,023 1,14,194 28% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 4,100 4,334 4,047 -1%
Slide 42: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials YOY QoQ Particulars (₹ Crore) Q2 FY22 Q1 FY23 Q2 FY23 H1 FY22 H1 FY23 Change % Change % Change% Revenue from Operations 17,393 19,733 18,963 9% -4% 30,742 38,696 26% EBITDA Aluminium - Upstream 3,127 3,272 1,347 -57% -59% 5,452 4,619 -15% Aluminium - Downst
Slide 43: Aluminium (India) Business EBITDA and Sales Reconciliation
Aluminium (India) Business EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars (in Rs Cr) Q2FY22 Q1 FY23 Q2FY23 H1 FY22 H1FY23 EBITDA - Upstream 3,127 3,272 1,347 5,452 4,619 EBITDA - Downstream 76 158 200 115 358 Intersegment (Profit) /Loss Elimination (Net) (52) (66) 437 (135) 37
Slide 44: Production – Alumina
Production – Alumina Alumina* (KT) 1,779 1,511 878 900 793 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 ▪ Total Alumina production was up 13% YoY and 2% sequentially in Q2 FY23 ▪ Quarterly production at Utkal Alumina refinery at 576 Kt in Q2 FY23 *Hydrate as Alumina Hindalco Industries Limited 38
Slide 45: For Further Queries Please Contact
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 Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East), Mumbai 400 093 Telephone- +91 22 6691 7000 Website: www.
Slide 46: Statement of Consolidated Unaudited Financial Results
HINDALCO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakati Caves Road, Andheri (East), Mumbai 400093 Website: www.hindalco.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958PLC011238 Statement of Consolidated Unaudited Financial Results for the Quarter
Slide 47: Segmentwise Consolidated Revenue, Results, Assets and Liabilities
DITYA BIRLA Segmentwise Consolidated Revenue, Results, Assets and Liabilities for the Quarter and Six Months ended September 30, 2022 {Rin Crore} Quarter ended Six Months ended Year ended = 30/09/2022 | 30/06/2022 | 30/09/2021 | 30/09/2022 | 30/09/2021 | 31/03/2022 (Unaudited) | (Unaudited) | (Unaud
Slide 48: Notes: Consolidated Assets and Liabilities
ADITYA BIRL, Notes: 1. Statement of Consolidated Assets and Liabilities are given below: (Rin Crore} . Asat Particulars 30/09/2022 | 31/03/2022 (Unaudited) | (Audited) ASSETS Non-Current Assets Property, Plant and Equipment (including Right-of-Use Assets} 76,747 76,470 Capital Work-in-Progress 5,220
Slide 49: Statement of Consolidated Cash Flows
ADITYA BIRLA 2. Statement of Consolidated Cash Flows are given below: {Rin Crore) ‘Six Months ended Particulars 30/09/2022 | 30/09/2021 (Unaudited) | (Unaudited) A. CASH FLOW FROM OPERATING ACTIVITIES Profit/ (Loss) before Tax from Continuing Operations 9,188 9,595 Adjustment for: Finance Cost 1,726
Slide 50: Notes to Consolidated Results
ADITYA BIRL. The statement of consolidated unaudited financial results (the “consolidated financial results”) of Hindalco Industries Limited (“the Company”) and its Subsidiaries (coliectively “the Group”) and its interest in Associates and Joint Ventures have been reviewed by the Audit Committee and
Slide 51: Statement of Standalone Unaudited Financial Results
LA HINDALCO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093 Website: www.hindaico.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958PLC01 1238 Statement of Standalone Unaudited Financial Results for the Quart
Slide 52: Notes: Standalone Assets and Liabilities
ADI LA. Notes: 1, Statement of Standalone Assets and Liabil {Rin Crore) Asat Particulars 30/09/2022 31/03/2022 {Unaudited) (Audited) JASSETS Non-Current Assets Property, Plant and Equipment (including Right of Use Assets) 31,760 31,759 Capital Work in Progress 1,968) 1,573 Investment Properties 8 8
Slide 53: Statement of Standalone Cash Flows
DITYA BIR: 2. Statement of Standalone Cash Flows is given below: (% in Crore} ‘Six months ended Particulars 30/09/2022 30/09/2021 (Unaudited) (Unaudited) (CASH FLOW FROM OPERATING ACTIVITIES Profit befare tax 3,073 3,842 Adjustment far Finance costs 655) 690. Depreciation and amortization 900 866 No
Slide 54: Notes to Standalone Results
BITYA BIF 3. The statement of standalone unaudited financial results (the “standalone financial results”) of the Company which includes the financial information of 2 Joint Operations and 2 Trusts, have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in the
Slide 55: Impairment loss on Non-Current Assets
8. Impairment loss/ (Reversal) on Non-Current Assets during the quarter ended September 30, 2022 consist of following: (Rin Crore} Particulars Q2 FY23 Write back of Impairment loss on certain equipments and accessories that were impaired earlier on determination (12) of its realizable value (Net of
Slide 56: Auditor Review Report – Consolidated
1. 2. Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, ist Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai-400093 We have reviewed the consolidated unaudited financial results of Hindalco Industries Limited (the “Parent”), which
Slide 57: Auditor Review Report – Consolidated, Page 2
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 of 3 . Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review/audit reports of the other auditors referred to in parag
Slide 58: Auditor Review Report – Consolidated, Page 3
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 3 of 3 . The consolidated unaudited financial results include the interim financial information of twelve subsidiaries, two trusts and two joint operations which have not been reviewed by their au
Slide 59: Annexure – List of Subsidiaries and Joint Operations
Price Waterhouse & Co Chartered Accountants LLP Annexure — 1 Sr.No. | Name Subsidiaries 1. Novelis Inc. (Refer Note below for its downstream entities) 2. Utkal Alumina International Limited 3. AV Minerals (Netherlands) N.V. 4. AV Metals Inc. (Merged with Novelis Inc w.e.f. September 1, 2022) 5. Mine
Slide 60: Downstream entities of Novelis Inc.
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 2 of 3 Note- Downstream entities of Novelis Inc. Subsidiaries Novelis do Brasil Ltda Brecha Energetica Ltda 4260848 Canada Inc. 4260856 Canada Inc. 8018227 Canada Inc. Novelis (China) Aluminum Products Co. Ltd. Novelis
Slide 61: Novelis entities, joint operations and associates
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 3 of 3 40. Aleris Aluminum UK Limited 41. Aleris Holding Canada ULC 42. Novelis ALR Aluminum Holdings Corporation 43. Novelis ALR International, Inc. 44. Novelis ALR Rolled Products, LLC 45. Novelis ALR Rolled Products,
Slide 62: Auditor Review Report – Standalone
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, 1% Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai — 400093 1. We have reviewed the standalone unaudited financial results of Hindalco Industries Limited (the “Company”) which inc
Slide 63: Auditor Review Report – Standalone, Page 2
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 0f 3 6. The standalone unaudited financial results includes the interim financial information of two joint operations and two trusts which have not been reviewed by their auditors, whose interim
Slide 64: Annexure – Trusts and Joint Operations
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 3 of 3 Annexure -1 Sl. No. | Name of the Trust 1. Trident Trust 2. Hindalco Employee Welfare Trust Sl. No. | Name of Joint Operation 1. Tubed Coal Mines Limited 2. Mahan Coal Limited