Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY20 Earnings Presentation
33 slides from Hindalco Industries's earnings presentation, Jun 12, 2020
Slide 1: Q4 & FY20 Earnings Presentation
Hindalco Industries Limited Q4 & FY20 Earnings Presentation 12th June, 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 COVID 19 - Actions to Maintain Safety, Operational Stability & Liquidity 04 • Novelis Key Highlights – Q4 FY20 vs. Q4 FY19 05 Economy & Industry Updates – Global & Domestic 08 • Aluminium Business Performance Highlights : Operational & Financial – Q4 & FY20 14 (India) - Novelis - Al
Slide 4: COVID 19 - Actions to Maintain Safety, Operational Stability & Liquidity
COVID 19 - Actions to Maintain Safety, Operational Stability & Liquidity Safety & Community Maintain Stable Operations with Adequate Liquidity Top priority to help ensure the safety, health and well-being of All four Aluminum smelters in India continue to operate’ with a all our employees, facil
Slide 5: Key Highlights – Q4 FY20 vs. Q4 FY19
Key Highlights – Q4 FY20 vs. Q4 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 5
Slide 6: Key Highlights : Q4 FY20 (vs. Q4 FY19)
Key Highlights : Q4 FY20 (vs. Q4 FY19) Net Income (excluding special items#) at US$ 153 million up 18% YoY Highest ever quarterly adjusted EBITDA of US$ 383 million, up 7% YoY Highest ever quarterly adjusted EBITDA per ton at US $472, up 15% YoY Novelis* Strong liquidity position of $2.6 bil
Slide 7: Key Highlights : Q4 FY20 (vs. Q4 FY19) .Contd.
Key Highlights : Q4 FY20 (vs. Q4 FY19) .Contd. EBITDA at Rs. 406 crores, up 9%, YoY; EBITDA margin at 9% Highest ever quarterly VAP (CC Rod) production of 71kt with of growth 15% YoY Copper VAP Sales (CC Rods) at 73 kt, up 4% YoY; share of VAP sales at 86% of total volumes in Q4 FY20. Overal
Slide 8: Economy & Industry Updates: Global & Domestic
Economy & Industry Updates: Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 8
Slide 9: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 8.0 8.3 3.5 3.5 3.6 3.8 3.6 3.5 3.4 7.4 2.9 7.0 6.4 6.1 5.5 4.2 -3.0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 CY20 E CY12 CY13 CY15 CY16 CY17 CY18 CY14 CY19 India GDP growth in Q4 FY20 was at a low of 3.1%. As a result, IMF's Apri
Slide 10: Aluminium Industry – Global Market
Aluminium Industry – Global Market Global Demand & Supply Balance (Mt) Global Price of Aluminium (Cash -$/T) 63.9 63.1 15.5 15.9 65.2 64.2 15.3 13.9 -1.3 -1.1 0.3 2.1 CY19 :$1,791 CY18 : $2,110 36.2 35.1 35.8 35.8 2259 15% fall in global 2159 aluminium prices 2057 1971 27.7 28.0 8.7 8.9 29.4 28.4 8.
Slide 11: Aluminium Industry – Domestic Market
Aluminium Industry – Domestic Market Domestic Demand (Kt) 931 1,029 999 1,013 3,972 996 957 861 905 3,720 2318 2170 607 605 549 1654 583 554 1550 556 503 529 376 422 393 463 414 403 358 376 Apr-Jun18 Jun-Sep18 Oct-Dec18 Jan-Mar19 FY 19 Apr-Jun19 Jun-Sep19 Oct-Dec19 Jan-Mar20 E FY 20 E Domestic Sales
Slide 12: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry The Global FRP demand will remain soft in the cyclical end markets resulting from the COVID pandemic. Industries like beverage and food packaging, pharma will benefit in the currents situation as well as post COVID, leading to higher demand of flat rol
Slide 13: Copper Industry
Copper Industry Global Demand & Supply Balance (in Mt) Domestic Demand (KT) Production Consumption 731 750 23.2 23.3 23.5 23.3 14.4 14.0 11.8 11.5 289 335 5.9 5.7 5.5 4.9 8.9 9.2 3.5 3.5 11.7 11.8 2.9 2.4 2.2 2.6 2.9 2.0 196 195 190 192 172 442 414 72 89 92 99 56 124 106 98 93 116 China World Ex Chi
Slide 14: Business Performance Highlights : Q4 & FY20
Business Performance Highlights : Q4 & FY20 Hindalco Industries Limited EXCELLENCE BY DESIGN 14
Slide 15: Novelis
Novelis Hindalco Industries Limited EXCELLENCE BY DESIGN 15
Slide 16: Operational Performance - Novelis
Operational Performance - Novelis Overall Shipments (KT) Novelis is well positioned to navigate near-term uncertainty and extend industry leadership 3,274 3,273 Total shipments were flat, YoY at 3,273 Kt in FY20 with Can sheet shipments up by 4% YoY Can sheet shipments were 66% of the total pr
Slide 17: Financial Performance - Novelis
Financial Performance - Novelis Revenue (USD Billion) Adjusted EBITDA (USD Million) Adjusted EBITDA (USD/tonne) 12.3 11.2 1,472 472 450 1,368 410 430 418 3.1 2.7 2.7 357 343 383 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Net sales decrease
Slide 18: Aluminium (Hindalco Aluminium including Utkal)
Aluminium (Hindalco Aluminium including Utkal) Hindalco Industries Limited EXCELLENCE BY DESIGN 18
Slide 19: Production – Alumina, Aluminium Metal & VAP
Production – Alumina, Aluminium Metal & VAP Alumina* (Inc. Utkal Alumina) KT Aluminium Metal (KT) Aluminium VAP# (KT) 320 319 2,893 1,295 1,314 2,735 749 720 321 330 327 81 80 79 662 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Muri Alumina
Slide 20: Sales Volume – Aluminium Metal & VAP
Sales Volume – Aluminium Metal & VAP Aluminium Metal Sales in all forms (KT) Aluminium VAP# (KT) 1,274 1,290 301 306 325 328 314 83 75 76 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 In Q4 FY20, Aluminium Metal Sales was lower by In Q4 FY20, Aluminium VAP Sales was lower b
Slide 21: Financial Performance - Hindalco Aluminium including Utkal Alumina
Financial Performance - Hindalco Aluminium including Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 23,775 21,749 5,096 3,729 5,953 5,467 5,284 1,010 1,036 1,039 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 In FY20, Aluminium revenues were down by 9% In Q4 FY20, EBIT
Slide 22: Copper
Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 22
Slide 23: Production – Copper & VAP
Production – Copper & VAP Cathode (KT) CC Rod (KT) DAP (KT) 263 245 303 347 321 230 89 62 60 71 69 80 86 75 64 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 In Q4 FY20, Cathode Production was lower In Q4 FY20, CC Rods production was higher In Q4 F
Slide 24: Sales Volume – Copper & VAP
Sales Volume – Copper & VAP Copper Metal Sales in All Forms (KT) CC Rods (KT) 359 257 335 243 100 70 73 84 86 58 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 In Q4 FY20, Copper Metal Sales was lower by 14% YoY In Q4 FY20, CC Rod Sales were up 4% YoY In FY20, Copper metal sales
Slide 25: Copper Business – Financial Performance
Copper Business – Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) 1,683 22,198 18,533 1,276 6,513 373 406 4,774 4,717 256 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 In Q4 FY20, EBITDA was higher by 9% YoY, In FY20, Revenues were down by 17% YoY, on despite challen
Slide 26: Financial Trend - Consolidated
Financial Trend - Consolidated Revenue (Rs. Crore) EBITDA (Rs. Crore) 1,30,542 16,627 1,18,144 15,536 33,745 29,197 29,318 3,938 4,173 3,676 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore) 8,083 5,495 6,208 3
Slide 27: Key Takeaways
Key Takeaways Ensure Employee Safety, Relentless Focus on Efficiencies Precautionary Actions and and Creating Essential Infrastructure Cost Competitiveness Navigate the Current Crisis & Focus on Value-accretive long term growth Focus on Cash Conservation, Sustainable Business Model Maintain Stable O
Slide 28: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 29: Annexures
Annexures Hindalco Industries Limited EXCELLENCE BY DESIGN 29
Slide 30: Awards & Recognitions – 2019-20
Awards & Recognitions – 2019-20 Hindalco entered S&P Dow Jones Sustainability Index (DJSI) and is amongst the world’s top 3 aluminium companies Hindalco received 1st National Corporate Social Responsibility (CSR) Award 2019, by the MoCA, GOI Hindalco won the “Silver Shield” for Excellence in Financi
Slide 31: Financials – Hindalco Consolidated
Financials – Hindalco Consolidated (Rs. Crore) Change Change Particulars Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 YoY % YoY % Revenue from Operations 33,745 29,197 29,318 -13% 1,30,542 1,18,144 -9% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 2,517 2,446 2,773 10% 9,565 10,43
Slide 32: Financials – Hindalco India Business
Financials – Hindalco India Business (Rs. Crore) YOY YOY Particulars Q4 FY19 Q3 FY20 Q4 FY20 FY19 FY20 Change % Change % Revenue from Operations 12,478 10,254 10,014 -20% 45,990 40,324 -12% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Aluminium (including Utkal) 1,010 1,036 1,0
Slide 33: For Further Queries Please Contact: Subir Sen, Investor Relations
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