Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY21 Earnings Presentation
32 slides from Hindalco Industries's earnings presentation, Aug 14, 2020
Slide 1: Hindalco Industries Limited Q1 FY21 Earnings Presentation
Hindalco Industries Limited Q1 FY21 Earnings Presentation 14th August, 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 – Q1 FY21 04 • Novelis Economy & Industry Updates – Global & Domestic 07 Business Performance : Operational & Financial – Q1 FY21 vs Q1 FY20 13 - Novelis • Aluminium - Aluminium (India) (India) - Copper - Consolidated Annexures : 29 - Key Financials – Q1 FY21 vs Q1 FY
Slide 4: Business Performance Key Highlights - Q1 FY21
Business Performance Key Highlights - Q1 FY21 Hindalco Industries Limited EXCELLENCE BY DESIGN 4
Slide 5: Key Highlights : Q1 FY21
Key Highlights : Q1 FY21 Completed acquisition of Aleris on 14th April ’20; integration process has commenced; continue to work with relevant parties to divest Lewisport and Duffel plants Achieved record automotive shipments in Asia on account of strong demand Novelis* Net Income (excluding sp
Slide 6: Key Highlights : Q1 FY21 ...Contd.
Key Highlights : Q1 FY21 ...Contd. Cathode production at 41 Kt, lower by 46% due to COVID related disruptions in operations Metal Sales at 58Kt, down 29%; CC Rods sales was at 31 kt, down 51% due to lower domestic demand. However cathode exports were higher at 25 Kt in Q1 FY21 DAP (fertilizer)
Slide 7: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7
Slide 8: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 9.8 10.3 8.5 8.3 8.3 5.6 5.4 5.4 7.4 8.0 7.0 6.6 6.4 6.0 4.3 5.5 3.5 3.5 3.6 3.5 3.4 3.9 3.6 3.9 4.2 3.0 2.9 CY07 CY08 CY09 CY10 CY11 CY12 CY14 CY15 CY16 CY17 CY18 CY19 CY13 CY20E CY21E -0.1 -4.5 -4.9 IMF expects GDP growth to cont
Slide 9: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Mt) Global Price of Aluminium (Cash -$/T) Production Consumption Metal Balance H1CY19: $1,826 H2CY19: $1,757 H1CY20: $1,593 31.3 31.9 15.8 15.9 32.3 29.0 17.0 15.4 (1.0) 2.8 (1.2) 0.5 2% 1,859 (10)% 1,793 1,762 1,752 1,690 1639 17.5 17.9 1% 1
Slide 10: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 996 957 861 888 583 554 503 512 433 246 414 403 358 376 186 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 E Domestic Sales Imports Domestic consumption in Q1 FY21 is estimated to declined by 57% YoY, to 433 Kt Imports including scrap de-grew by 58% YoY
Slide 11: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry The global FRP Demand is expected to decline by ~9% in 2020 (vs 2019) due to the COVID-19 and is expected to bounce back with growth ~8% in 2021 (vs FY20) on account demand recovery and base effect. With continued resilience in North America and Euro
Slide 12: Copper Industry (Global & Domestic)
Copper Industry (Global & Domestic) Global Demand & Supply Balance (in Mt) Domestic Demand (Kt) (1)% (6)% 195 190 192 11.5 11.3 11.5 172 10.8 (5)% 89 92 99 56 7.0 5.8 5.3 6.8 5.6 5.6 6.0 5.8 91 3.3 2.9 2.4 40 3.5 116 4.5 4.5 5.7 5.6 106 98 93 2.1 2.3 3.1 3.3 51 H1 CY 19 H1 CY 20 Q2 CY 19 Q2 CY 20 H1
Slide 13: Business Performance : Q1 FY21
Business Performance : Q1 FY21 Hindalco Industries Limited EXCELLENCE BY DESIGN 13
Slide 14: Novelis
Novelis Hindalco Industries Limited EXCELLENCE BY DESIGN 14
Slide 15: Operational Performance – Novelis
Operational Performance – Novelis Strong customer relationships and unmatched footprint make us well positioned to Overall Shipments (KT) navigate near-term uncertainty 830 811 Aleris acquisition update : 774 On April 14, 2020, Novelis completed its acquisition of Aleris The safe integration
Slide 16: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 2.9 372 383 472 2.7 448 2.4 327 253 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Net sales in Q1 FY21 stands at $2.4 Adjusted EBITDA at $253 million in Adjusted
Slide 17: Aluminium (India)
Aluminium (India) Hindalco Industries Limited EXCELLENCE BY DESIGN 17
Slide 18: Production – Alumina, Aluminium Metal & Aluminium VAP
Production – Alumina, Aluminium Metal & Aluminium VAP Alumina* (KT) Aluminium Metal (KT) Aluminium VAP# (KT) 720 326 327 79 79 686 291 623 34 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Utkal Alumina refinery recorded Aluminium Metal Production was lower Aluminum VA
Slide 19: Sales Volume – Aluminium Metal & VAP
Sales Volume – Aluminium Metal & VAP Aluminium Metal Sales in all forms (KT) Aluminium VAP# (KT) 77 76 320 314 303 35 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 VAP sales were down 55% YoY due to lockdown Aluminium Metal Sales was lower by 5% YoY. Impact of subdued domestic market offset by
Slide 20: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 5,490 5,299 1,043 4,436 853 856 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Aluminium revenues were down by 19% YoY, due Despite an unprecedented macro environment due to to lower aluminium prices COVID, EBITDA main
Slide 21: Copper
Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 21
Slide 22: Production – Copper Metal & VAP
Production – Copper Metal & VAP Cathode (KT) CC Rod (KT) 71 76 75 66 41 26 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 CC Rods production was down 60% YoY, due Cathode production at 41 Kt, lower by to lower domestic demand. 46% due to COVID related disruptions in operations Hindalco Industries Lim
Slide 23: Sales Volume – Copper Metal, VAP & DAP
Sales Volume – Copper Metal, VAP & DAP Copper Metal Sales in All Forms (KT) CC Rods (KT) DAP (KT) 82 86 73 102 63 76 58 31 31 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Copper Metal Sales was lower by CC Rod Sales were down by 51% YoY, DAP sales were 230% higher on the 29%
Slide 24: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 4,593 4,717 406 307 3,031 37 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Revenues were down by 34% YoY, on account of EBITDA was down 88% YoY, due to lower volumes, lower by 34%, due to lower volumes and realisation, by-pro
Slide 25: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited EXCELLENCE BY DESIGN 25
Slide 26: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) Business EBITDA (₹ Crore) 29,972 29,318 4,216 25,283 3,730 2,813 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 PBT Before Exceptional Items (₹ Crore) Profit After Tax (₹ Crore) # 1,189 1,718* 1,395 668 274* 139 # Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20
Slide 27: Our Focus on
Our Focus on Employee Safety Stringent Cash Control and and Business Continuity Cost competitiveness Accelerating Value-Accretive Long-term Growth and Lowering Impact of LME Volatility Strong Liquidity Resilient and Sustainable and Business Model Balance Sheet Hindalco Industries Limited EXCELLENCE
Slide 28: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 29: Annexures
Annexures Hindalco Industries Limited EXCELLENCE BY DESIGN 29
Slide 30: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ (₹ Crore) Particulars Q1 FY20 Q4 FY20 Q1 FY21 YoY % Change % Revenue from Operations 29,972 29,318 25,283 -16% -14% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 2,587 2,773 1,919 -26% -31% Aluminium 853 1,043 856 -18% Copper 307
Slide 31: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ Particulars Q1 FY20 Q4 FY20 Q1 FY21 Change % Change% Revenue from Operations 10,078 10,012 7,464 -26% -25% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Aluminium 853 1,043 856 -18% Copper 307 406 37 -88% -91% Other Se
Slide 32: 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.