Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY23 Earnings Presentation
58 slides from Hindalco Industries's earnings presentation, Feb 9, 2023
Slide 1: Outcome of Board Meeting letter to exchanges
February 9, 2023 BSE Limited National Stock Exchange of India Banque Internationale A Luxembourg Scrip Code: Limited Societe Anonyme 500440 Scrip Code: HINDALCO Dear Sir/ Madam, Sub: Outcome of Board Meeting o ) Ref: i) Regulation 30 & 33 of Securities and Exchange Board of India (Listing Obligation
Slide 2: Hindalco Reports Third Quarter FY23 Results
Media Release Hindalco Reports Third Quarter FY23 Results Q3 FY23 Performance (vs Q3 FY22) ▪ Consolidated revenue at ₹53,151 crore, up 6% YoY ▪ Quarterly consolidated PAT at ₹1,362 crore, down 63% YoY ▪ Quarterly consolidated EBITDA at ₹3,930 crore, down 48% YoY ▪ Record total shipments of India pri
Slide 3: Consolidated Financial Highlights for the Quarter and Nine Months
Consolidated Financial Highlights for the Quarter and Nine Months ended December 31, 2022 (₹ Crore) Particulars Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Revenue from Operations 50,272 56,176 53,151 1,39,295 1,67,345 Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,792 4,047
Slide 4: Consolidated Results and Business Segment Performance
Consolidated Results Consolidated revenue for the third quarter stood at ₹53,151 crore (vs ₹50,272 crore), up 6% YoY due to better realisations and better volumes in India operations. Hindalco reported an EBITDA of ₹3,930 crore (vs ₹7,624 crore) in Q3 FY23, down 48% YoY, impacted by rising input cos
Slide 5: Business Updates & Recognition
Business Updates & Recognition • Pilot production begins at Hindalco’s new 34Kt Extrusions facility in Silvassa, India. • Additional 350 Kt expansion via debottlenecking at Utkal Alumina in progress. • Hindalco part of S&P Global Sustainability Yearbook 2023 for the second consecutive year. • Utkal
Slide 6: Hindalco Industries Limited Q3 FY23
Hindalco Industries Limited Q3 FY23 Earnings Presentation 09th February, 2023
Slide 7: 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 8: Table of Content
Table of Content 1. Sustainability Updates – Q3 FY23 2. Key Highlights – Q3 FY23 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial - Novelis - Aluminium : Upstream Business - Aluminium : Downstream Business • Aluminium - Copper - Consolidat
Slide 9: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 10: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Environment % Recycling of Bauxite Residue except from Utkal Refinery Zero waste to landfill by 2030 • 85.6% of total waste got recycled and reused (w/w of generation) in FY23.YTD 117 • 117% of Bauxite Residue from three out of four Alumin
Slide 11: 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); 100 MW already installed till FY22 19.78 19.74 19.66 • Projects commissioned YTD FY23 - 9 MW • 33 TPH steam + 4 MW Power with Biomass boiler a
Slide 12: Business Performance Key Highlights - Q3 FY23
Business Performance Key Highlights - Q3 FY23 Hindalco Industries Limited 7
Slide 13: Key Highlights: Q3 FY23
Key Highlights : Q3 FY23 ▪ Performance impacted by rising input costs and unfavorable macros, partially offset by higher volumes in India operations ▪ Quarterly EBITDA at ₹3,930 crore (₹7,624 crore), down 48% YoY Consolidated ▪ Quarterly PAT from continuing operations at ₹1,362 crore (vs ₹3,660 cror
Slide 14: Key Highlights: Q3 FY23 ...Contd.
Key Highlights : Q3 FY23 ...Contd. ▪ EBITDA at ₹1,591 crore (vs ₹3,309 crore) down 52% YoY, impacted by higher input costs and unfavorable macros partially offset by higher volumes; EBITDA margins at 19.8% (vs 41.3%) Aluminium ▪ EBITDA per ton at $555 (vs $1,279/ton), down 57% YoY. Upstream ▪ Record
Slide 15: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 16: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.6 6.0 5.4 10.3 4.3 9.8 8.7 8.5 8.0 8.3 8.3 7.0 3.0 3.5 3.5 3.6 3.5 3.4 3.9 3.6 3.4 2.9 6.6 5.5 6.4 7.4 7 6.4 2.9 4.2 3.9 CY18 CY19 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY20 CY21 CY22F CY23F -0.1 Source: IMF Source
Slide 17: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 2% 3% 1% -1% 3267 67.4 68.9 16.8 17.3 69.0 69.3 17.5 17.3 (1.6) (0.4) (0.6) (0.1) 2882 2762 2648 0.0 2400 2354 2324 0.1 38.5 40.1 40.1 40.4 (0.1) (0.1)
Slide 18: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand of Aluminium (in Kt) 908 939 1030 1038 1000 1178 1160 224 209 161 221 164 188 162 453 461 450 394 418 381 380 419 422 418 502 490 340 396 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q3 FY23, t
Slide 19: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ Global FRP Demand is estimated to grow by ~3% in CY23 (vs CY22 growth of 3%). 1. Beverage Packaging 2. Automotive 3. Specialities 4. Aerospace • Customer inventory • Easing supply chain • End markets historically more • Post-pandemic travel reduction e
Slide 20: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 1.9% 1.6% 24.2 24.7 24.5 24.9 11.2 11.3 13.9 14.1 6.3% 5.2% 6.0 6.4 6.3 6.6 13.3 13.6 10.3 10.6 2.9 2.8 3.5 3.6 2.5 2.8 3.4 3.9 CY21 CY22 Q4 CY21 Q4 CY22 CY21 CY22 Q4 CY21 Q4 CY22 CY22 vs. CY21 China World
Slide 21: Domestic Copper Industry
Domestic Copper Industry Domestic Demand (kT) 192 188 186 160 162 172 173 45 45 33 33 99 43 38 118 44 139 140 143 141 117 124 93 74 Q3 FY20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Domestic Supply Import ▪ In Q3 FY23, market demand increased by ~15%, YoY at 186 kt vs 162 KT in Q3FY22
Slide 22: Business Performance: Q3 FY23
Business Performance : Q3 FY23 Hindalco Industries Limited 17
Slide 23: Novelis
Novelis Hindalco Industries Limited 18
Slide 24: Operational Performance – Novelis
Operational Performance – Novelis Overall Shipments (KT) ▪ Overall quarterly performance in Q3FY23 was impacted by lower volumes on supply chain de- stocking, lower specialties demand, challenging macro-economic environment, inflationary 2,871 2,854 pressures, higher energy costs, rising interest ra
Slide 25: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 14.1 1,614 562 12.3 544 1,408 514 493 376 4.3 4.8 4.2 506 506 341 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 ▪ Net sales in Q3FY23 s
Slide 26: Aluminium: Upstream Performance
Aluminium : Upstream Performance Hindalco Industries Limited 21
Slide 27: Aluminium Upstream Business
Aluminium Upstream Business Production (Kt) Shipments (Kt)* ▪ Record Production at 335 Kt in Q3FY23, 1,021 1,023 up 2%, YoY and Record Shipments at 349 968 993 Kt, up 1% YoY ▪ Revenues were flattish YoY 345 341 349 327 332 335 ▪ EBITDA at ₹1,591 crore, down 52% YoY in Q3FY23 on account of higher inp
Slide 28: Aluminium: Downstream Performance
Aluminium : Downstream Performance Hindalco Industries Limited 23
Slide 29: Aluminium Downstream Business
Aluminium Downstream# Business Production (Kt) Sales (Kt) ▪ In Q3 FY23 production was lower by 254 264 257 258 3% and Sales were up by 6% YoY ▪ Revenues were lower by 8% YoY, on 88 88 85 86 95 91 account of lower volumes ▪ EBITDA at ₹157 crore, up 24% YoY in Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Q
Slide 30: Copper
Copper Hindalco Industries Limited 25
Slide 31: 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 302 256 104Kt whereas Copper Rods 265 190 Production was 91Kt in Q3FY23 up 2% and 19% respectively 102 105 104 86 91 77 Q3FY22 Q2FY23 Q3FY23 9M FY22 9M FY23 Q3
Slide 32: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 30,496 1,655 26,936 1,003 10,255 9,658 10,309 544 546 390 Q3FY22 Q2FY23 Q3FY23 9M FY22 9M FY23 Q3FY22 Q2FY23 Q3FY23 9M FY22 9M FY23 ▪ Revenues were up by 1% YoY in Q3 FY23, on ▪ EBITDA at ₹546 crore in Q3 FY23 compared to acc
Slide 33: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 28
Slide 34: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 1,67,345 22,459 1,39,295 18,313 50,272 56,176 53,151 7,624 5,743 3,930 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 PBT after Exceptional Items (₹ Crore) PAT from Continuing Operations (₹ Crore) 14,7
Slide 35: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 Gross Debt 65,817 63,237 64,023 61,536 59,720 Cash & Cash Equivalents 22,084 24,141 21,830 19,473 18,004 Net Debt 43,733 39,096 42,193 42,063 41,716 TTM Adjusted EBITDA
Slide 36: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 37: Annexures
Annexures Hindalco Industries Limited 32
Slide 38: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 YoY % Change % YoY % Revenue from Operations 50,272 56,176 53,151 6% -5% 1,39,295 1,67,345 20% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,792 4,047 2,848 -25
Slide 39: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials YOY QoQ Particulars (₹ Crore) Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Change % Change % Change% Revenue from Operations 18,486 18,963 19,432 5% 2% 49,227 58,127 18% EBITDA Aluminium - Upstream 3,290 1,347 1,591 -52% 18% 8,741 6,210 -29% Aluminium - Downstre
Slide 40: Aluminium (India) Business EBITDA and Sales Reconciliation
Aluminium (India) Business EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars (in Rs Cr) Q3FY22 Q2 FY23 Q3FY23 9MFY22 9MFY23 EBITDA - Upstream 3,290 1,347 1,591 8,741 6,210 EBITDA - Downstream 125 200 157 240 515 Intersegment Profit /(Loss) Elimination (Net) (111) 437 101 (246) 47
Slide 41: Production – Alumina
Production – Alumina Alumina* (KT) 2,664 2,369 858 900 885 Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 ▪ Total Alumina production was up 3% YoY ▪ Of this production at Utkal Alumina refinery at 592 Kt in Q3 FY23, up 5% YoY *Hydrate as Alumina Hindalco Industries Limited 36
Slide 42: 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 43: Q3FY23: Earnings Concall Details
Q3FY23 : Earnings Concall Details Earnings Conference Call is scheduled at 4:00 PM (IST) on Feb 9, 2023. The dial-in numbers for the call are given below Location: ACCESS NUMBER Universal Access (India) Primary Number (+) 91 22 6280 1303 Secondary Number (+) 91 22 7115 8204 International Toll-Free N
Slide 44: Auditor Review Report – Consolidated
Price Waterhouse & Co Chartered Accountants LLP Review Report The Board of Directors Hindalco Industries Limited Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai-400093 1. We have reviewed the consolidated unaudited financial results of Hindalco Industries Limited (the “Pare
Slide 45: Auditor Review Report – Consolidated (Page 2)
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 of 5 6. We did not review the interim financial statements of four subsidiaries and consolidated interim financial information of one subsidiary included in the consolidated unaudited financial
Slide 46: Annexure 1 – List of Subsidiaries
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 3 of 5 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. A V Metals
Slide 47: Downstream Entities of Novelis Inc.
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 4 of 5 Note- Downstream entities of Novelis Inc. Subsidiaries 1. Novelis do Brasil Ltda 2. Brecha Energetica Ltda 3. 4260848 Canada Inc. 4. 4260856 Canada Inc. 5. 8018227 Canada Inc. 6. Novelis (C
Slide 48: Novelis Entities, Joint Operations and Associates
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 5 of 5 42. Novelis ALR Aluminum Holdings Corporation 43. Novelis ALR International, Inc. 44. Novelis ALR Rolled Products, LLC 45. Novelis ALR Rolled Products, Inc. 46. Novelis ALR Aluminum, LLC 47
Slide 49: Statement of Consolidated Unaudited Financial Results
HINDALCO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali 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 50: Segmentwise Consolidated Revenue, Results, Assets and Liabilities
Segmentwise Consolidated Revenue, Results, Assets and Liabilities for the Quarter and Nine Months ended December 31, 2022 (₹ in Crore) Quarter ended Nine Months ended Year ended 31/12/2022 30/09/2022 31/12/2021 31/12/2022 31/12/2021 31/03/2022 Particulars (Unaudited) (Unaudited) (Unaudited) (Unaudit
Slide 51: Notes to Consolidated Results
Notes: 1. The statement of consolidated unaudited financial results (the “consolidated financial results”) of Hindalco Industries Limited (“the Company”) which includes the financial information of 2 Joint Operations, 2 Trusts and its Subsidiaries (collectively “the Group”) and its interest in Assoc
Slide 52: Notes to Consolidated Results (continued)
4. On January 18, 2023, the Company has issued 70,000 7.60% Redeemable Non-Convertible Debentures amounting to ₹ 700 crore maturing on March 18, 2024 which will be utilised to meet working capital requirement and general corporate purpose. These Non-Convertible debt securities has been issued to com
Slide 53: Auditor Review Report – Standalone
Price Waterhouse & Co Chartered Accountants LLP Review Report The Board of Directors Hindalco Industries Limited Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai-400093 1. We have reviewed the standalone unaudited financial results of Hindalco Industries Limited (the “Compan
Slide 54: Auditor Review Report – Standalone (Page 2)
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 of 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 55: Annexure 1 – 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 the Joint Operation 1. Tubed Coal Mines Limited 2. Mahan Coal Limited
Slide 56: Statement of Standalone Unaudited Financial Results
HINDALCO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093 Website: www.hindalco.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958PLC011238 Statement of Standalone Unaudited Financial Results for the Quarter a
Slide 57: Notes to Standalone Results
Notes: 1. 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 their
Slide 58: Notes to Standalone Results (continued)
5. Since the segment information as per Ind AS 108-Operating Segments is provided on the basis of consolidated unaudited financial results, the same is not provided separately for the standalone unaudited financial results. 6. Figures of previous periods have been regrouped/ reclassified wherever ne