Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY20 Earnings Presentation
30 slides from Hindalco Industries's earnings presentation, Feb 12, 2020
Slide 1: Hindalco Industries Limited Q3 FY20 Earnings Presentation
Hindalco Industries Limited Q3 FY20 Earnings Presentation 12th February, 2020
Slide 2: 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 3: Table of Content
Table of Content Key Highlights – Q3 FY20 04 • Novelis Economy & Industry Updates – Global & Domestic 07 Business Performance Highlights : Operational & Financial – Q3 FY20 12 • Aluminium Annexures 27 (India) • Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 3
Slide 4: Key Highlights – Q3 FY20
Key Highlights – Q3 FY20 Hindalco Industries Limited EXCELLENCE BY DESIGN 4
Slide 5: Key Highlights: Q3 FY20 vs. Q3 FY19
Key Highlights : Q3 FY20 vs. Q3 FY19 Record Q3 Adjusted EBITDA of US$ 343 million up 7% YoY Adjusted EBITDA per ton at US $430 up 7% YoY Net Income (excluding special items#) at US$ 132 million up 31% YoY Novelis* Total shipments flat YoY at 797 Kt. Although, Can and Auto sheet shipments wer
Slide 6: Key Highlights: Q3 FY20 vs. Q3 FY19 Contd.
Key Highlights : Q3 FY20 vs. Q3 FY19 ..Contd. Domestic Copper market growth in Q3 FY20 moderated to 2% YoY Metal Sales volume at 84 Kt lower by 14% YoY, on account of operational issues Copper VAP Sales (CC Rods) at 58 kt, up 3% ; share of VAP sales at 69% of total volumes EBITDA at Rs. 256
Slide 7: Economy & Industry: Global & Domestic
Economy & Industry : Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7
Slide 8: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.4 9.1 9.4 8.7 8.9 8.0 8.1 4.3 7.3 3.8 7.0 3.5 3.5 3.6 3.5 3.6 6.6 3.4 3.3 5.8 2.9 5.0 5.3 4.5 4.3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 CY19 E CY20
Slide 9: Aluminium Industry
Aluminium Industry Global Demand & Supply Balance (Mt) Global Price of Aluminium (Cash -$/T) Domestic Demand (Kt) 63.9 63.6 65.2 64.4 36.2 35.6 35.8 36.0 27.7 28.0 29.4 28.4 2,110 0.4 -0.4 1,971 (-) 15% -1.7 -0.4 2,959 2,817 -1.2 -0.8 1,791 1,762 1,754 1,768 1,642 999 957 863 CY18 CY19 CY18 CY19 CY1
Slide 10: FRP Industry
FRP Industry Global FRP demand continued to grow at a steady pace of ~3% in CY20 Global demand for the beverage cans stock is growing strongly due to packaging material shift to aluminium in the products like new energy drinks, sparkling water & crafted beer. This has led to a global growth of ~
Slide 11: Copper Industry
Copper Industry Global Demand & Supply Balance (in Mt) Domestic Demand (Kt) 577 535 23.6 23.5 23.6 23.5 9.2 9.5 11.7 11.8 318 298 280 14.4 14.0 11.8 11.6 217 189 190 193 CY18 CY19 CY18 CY19 113 76 98 92 94 99 Production Consumption World ex. China China Oct-Dec '18 Jul-Sept '19 Oct-Dec '19 YTDFY19 Y
Slide 12: Business Performance Highlights: Q3 FY20
Business Performance Highlights : Q3 FY20 Hindalco Industries Limited EXCELLENCE BY DESIGN 12
Slide 13: Novelis
Novelis Hindalco Industries Limited EXCELLENCE BY DESIGN 13
Slide 14: Operational Performance - Novelis
Operational Performance - Novelis Total shipments were flat YoY at 797 Kt supported by higher Can and Auto shipments YOY: Overall Shipments (KT) Beverage Can sheet shipments were up 4% YoY, on account of strong global demand Automotive body sheet were up 3% YoY on account of strong demand of A
Slide 15: Financial Performance - Novelis
Financial Performance - Novelis Revenue (USD Billion) Adjusted EBITDA (USD Million) Adjusted EBITDA (USD/tonne) 9.2 448 8.5 1,089 430 422 442 1,011 403 3.0 2.9 322 374 343 2.7 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Re
Slide 16: Aluminium Business (Hindalco Aluminium including Utkal)
Aluminium Business (Hindalco Aluminium including Utkal) Hindalco Industries Limited EXCELLENCE BY DESIGN 16
Slide 17: Production – Alumina, Aluminium Metal & VAP
Production – Alumina, Aluminium Metal & VAP Alumina* (Inc. Utkal Alumina) KT Aluminium Metal (KT) Aluminium VAP# (KT) 238 235 2,145 2,015 973 987 749 81 76 80 667 662 324 330 330 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20
Slide 18: Sales Volume – Aluminium Metal & VAP
Sales Volume – Aluminium Metal & VAP Aluminium Metal Sales in all forms (KT) Aluminium VAP# (KT) 230 218 949 976 76 78 75 323 328 328 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Aluminium metal sales higher by 2% YoY in Q3 FY20 Aluminium VAP were flat YoY in Q
Slide 19: Financial Performance - Hindalco Aluminium including Utkal Alumina
Financial Performance - Hindalco Aluminium including Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 17,822 4,086 16,465 2,690 6,019 5,526 5,467 1,252 1,036* 806 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Aluminium revenues were down by 9% YoY EBITDA was
Slide 20: Copper Business
Copper Business Hindalco Industries Limited EXCELLENCE BY DESIGN 20
Slide 21: Production – Copper & VAP
Production – Copper & VAP Cathode (KT) CC Rod (KT) DAP (KT) 234 258 183 192 246 166 105 86 76 80 84 66 65 60 50 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Cathode production lower by 18% YoY in CC Rod production was lower by (-)8% D
Slide 22: Sales Volume – Copper & VAP
Sales Volume – Copper & VAP Copper Metal Sales in All Forms (KT) CC Rods (KT) 184 173 259 249 57 63 58 99 82 84 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Copper metal sales lower by 14% and 4% YoY in Copper Continuous Cast Rods sales volumes were up 3% Q3 and 9M FY20
Slide 23: Copper Business – Financial Performance
Copper Business – Financial Performance Revenue (Rs. Crore)# EBITDA (Rs. Crore) 15,685 1,310 13,816 870 5,943 490 4,449 4,774 306 256 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Revenues were down by 20% YoY on EBITDA was down 48% YoY in Q3 FY20 and account of lower rea
Slide 24: Financial Trend - Consolidated
Financial Trend - Consolidated Revenue (Rs. Crore) EBITDA (Rs. Crore) 12,689 96,797 11,363 88,826 33,213 29,657 29,197 4,080 3,918 3,676 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore) 6,358 4,813
Slide 25: Update on Key Focus Areas
Update on Key Focus Areas Cost Efficiency through • Capacity expansion at Utkal Alumina (Lowest cost producer) by 500Kt – ~70% work already completed till date Integration & • Dumri - Captive Coal mine to start operations in Q1-FY21 Resource “To become a Security Resilient, Reliable & • India Alumin
Slide 26: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 27: Annexure
Annexure Hindalco Industries Limited EXCELLENCE BY DESIGN 27
Slide 28: Financials – Hindalco Consolidated
Financials – Hindalco Consolidated (Rs. Crore) Change Change Particulars Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 YoY % YoY % Revenue from Operations 33,213 29,657 29,197 -12% 96,797 88,826 -8% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 2,324 2,629 2,446 5% 7,048 7,66
Slide 29: Financials – Hindalco India Business
Financials – Hindalco India Business (Rs. Crore) YOY YOY Particulars Q3 FY19 Q2 FY20 Q3 FY20 9M FY19 9M FY20 Change Change % % Revenue from Operations 11,965 9,977 10,254 -14% 33,512 30,310 -10% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Aluminium (including Utkal) 1,252 806
Slide 30: For Further Queries Please Contact
For Futher 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.h