Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY22 Earnings Presentation
36 slides from Hindalco Industries's earnings presentation, Feb 10, 2022
Slide 1: Hindalco Industries Limited Q3 FY22 Earnings Presentation
Hindalco Industries Limited Q3 FY22 Earnings Presentation 10th February, 2022
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 1. Sustainability Updates 2. Key Highlights – Q3 FY22 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial – Q3 FY22 - Novelis - Aluminium (India) - Copper • Aluminium - Consolidated (India) 5. Annexures : - Consolidated - Key
Slide 4: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 5: Hindalco: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Environment Total Bauxite Residue (% Recycled from 3/4 Refineries) • 81% of total wastes recycled and reused in YTD-FY22 • 95% of Bauxite Residue from three refineries is re-used in Cement making 100% 95% • Utkal refinery is conducting pil
Slide 6: Hindalco: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewable Energy Aluminium Sp. Energy (%) Total Target : 200 MW by FY25 (Indexed to FY12 Base) Renewables (100 MW in FY22) • Completed installation of on-site Solar projects at Renukoot, Renusagar, Mahan, Mouda and an off- 83.9% site project for Taloja facilit
Slide 7: Business Performance Key Highlights - Q3 FY22
Business Performance Key Highlights - Q3 FY22 Hindalco Industries Limited 7
Slide 8: Key Highlights: Q3 FY22
Key Highlights : Q3 FY22 ▪ Shipments were flat YoY, at 930Kt vs 933Kt in Q3FY21, impacted by ongoing semiconductor chip shortage, unplanned downtime, and supply chain bottlenecks ▪ Adjusted EBITDA at $506 million ($501 million), up 1% YoY ; Adjusted EBITDA per ton at $544 ($537/t) up 1% YoY Novelis*
Slide 9: Key Highlights: Q3 FY22 ...Contd.
Key Highlights : Q3 FY22 ...Contd. ▪ All smelters ran optimally, delivering a consistent performance in quarter three ▪ Cathode production was at 102Kt (51Kt) up 99% YoY ; CC Rods production was 77Kt (67Kt) up 15% YoY Copper ▪ Metal sales volume at 110Kt (73Kt) up 50% YoY; CC Rods sales at 71kt (65K
Slide 10: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 11: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 9.8 10.3 5.6 5.9 9.2 5.4 8.5 8.3 8.3 8.0 4.4 7.4 7.0 4.3 6.6 6.4 3.5 3.5 3.6 3.5 3.4 3.9 3.6 5.5 3.0 2.9 4.2 3.9 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E CY11 CY20 CY07 CY08 CY09 CY10 CY12 CY13 CY14
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 4% 1% 9% 1% 2,762 2,648 64.7 67.5 16.7 16.8 62.9 68.5 16.9 17.0 1.8 (1.1) (0.1) (0.2) 2,400 36.7 38.5 40.0 2,096 37.8 1,916 1,690 1,704 1,497 28.0 28.9
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 574 747 1018 1073 908 939 1033 195 237 159 188 162 122 455 442 415 381 116 262 380 272 363 382 422 340 396 419 186 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q3 FY22, the domestic demand
Slide 14: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ The global FRP Demand is estimated to grow by ~6% in CY22 (vs CY21 growth of ~10%). Beverage Cans ~5% Automotive ~20% Specialities ~4% Aerospace ~30% CY22E Growth in Market Demand CY22E Growth in Market Demand CY22E Growth in Market Demand CY22E Growth
Slide 15: Copper Industry (Global)
Copper Industry (Global) Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 2.4% 4.7% 23.4 24.0 23.9 22.8 9.5 10.1 12.4 12.7 -2.0% -1.6% 6.1 6.0 6.2 6.1 13.9 13.9 10.4 11.2 3.4 3.3 3.6 3.5 2.5 2.5 2.8 2.8 CY20 CY21 Q4 Q4 CY20 CY21 Q4 Q4 CY20 CY21 CY20 CY21 YTD CY21 (vs YTD CY20)
Slide 16: Copper Industry (Domestic)
Copper Industry (Domestic) Domestic Demand (KT) 165 161 162 150 160 59 42 43 38 37 118 91 44 40 124 113 106 119 117 74 51 Q1FY21 Q2 FY21 Q3FY21 Q4FY21 Q1FY22 Q2 FY22 Q3 FY22 Domestic Supply Import ▪ Market demand declined by ~2% YoY at 162 KT in Q3 FY22 vs Q3 FY21; Imports have declined by 36% YoY ▪
Slide 17: Business Performance: Q3 FY22
Business Performance : Q3 FY22 Hindalco Industries Limited 17
Slide 18: Novelis
Novelis Hindalco Industries Limited 18
Slide 19: Operational Performance – Novelis
Operational Performance – Novelis Overall Shipments (KT) ▪ Shipments in Q3FY22 were flat, YoY at 930 Kt in a seasonally low third quarter ▪ Q3 FY22 reflected higher aerospace and automotive shipments, despite semiconductor 2,871 2,630 constraints, offset by lower Can shipments impacted mainly by unp
Slide 20: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 12.3 571 562 1,614 537 544 460 8.6 1,209 4.1 4.3 501 553 506 3.2 Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 ▪ Net sales in Q3 FY22 s
Slide 21: Aluminium (India)
Aluminium (India) Hindalco Industries Limited 21
Slide 22: Aluminium Metal & VAP - Production and Sales in Kt
Aluminium Metal & VAP - Production and Sales in Kt Production : Aluminium Metal (Kt) Production : Aluminium VAP (Kt) ▪ Aluminium Metal Production up 4% 257 YoY and 1% QoQ 913 968 180 ▪ Aluminum VAP production in Q3 FY22 was higher by 4% YoY and sequentially 322 327 84 84 88 315 ▪ Alumina production
Slide 23: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 22,322 8,975 14,526 7,812 8,243 3,247 3,376 3,622 5,294 1,461 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9MFY22 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9MFY22 ▪ Aluminium revenues were up 56% YoY, with ▪ Record EBITDA at ₹3,376 crore, up 131% Y
Slide 24: Copper
Copper Hindalco Industries Limited 24
Slide 25: Copper Metal & VAP - Production and Sales in Kt
Copper Metal & VAP - Production and Sales in Kt Production : Copper Cathode (Kt) Production : CC Rod (Kt) ▪ Cathode Production was 190 265 higher by 99% YoY in Q3 158 FY22 whereas Copper Rods 165 Production was up 15% YoY 70 77 100 102 67 51 Q3FY21 Q2FY22 Q3FY22 9M FY21 9M FY22 Q3FY21 Q2FY22 Q3FY22
Slide 26: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 26,936 1,003 13,938 547 9,587 10,255 390 352 6,133 240 Q3FY21 Q2FY22 Q3FY22 9M FY21 9M FY22 Q3FY21 Q2FY22 Q3FY22 9M FY21 9M FY22 ▪ Revenues were up by 67% YoY in Q3 FY22, ▪ EBITDA at ₹390 crore in Q3 FY22 compared to on accou
Slide 27: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 27
Slide 28: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 1,39,295 22,462 91,478 13,051 47,665 50,272 8,048 7,624 34,958 5,521 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9M FY22 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9M FY22 PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore) 14,79
Slide 29: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 Gross Debt 71,996 65,994 67,836 66,831 65,817 Cash & Cash Equivalents 18,194 18,575 15,923 18,820 22,084 Net Debt 53,802 47,419 51,913 48,011 43,733 TTM Adjusted EBITDA
Slide 30: Key Focus Areas
Key Focus Areas Product Mix Diversification Profitable Growth / Enhancement Profitable growth through investments in recycling, debottlenecking and organic Enrich product mix through increasing the share expansions in more stable and predictable of high-end value-added products in the overall downst
Slide 31: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 32: Annexures
Annexures Hindalco Industries Limited 32
Slide 33: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9M FY22 YoY % Change % YoY % Revenue from Operations 34,958 47,665 50,272 44% 5% 91,478 1,39,295 52% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,711 4,100 3,792 2% -
Slide 34: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ Particulars Q3 FY21 Q2 FY22 Q3 FY22 9M FY21 9M FY22 Change % Change % Change% Revenue from Operations 11,425 17,393 18,485 62% 6% 28,454 49,227 73% EBITDA Aluminium 1,461 3,247 3,376 131% 4% 3,622 8,975 148% Copper 240 352 390 63% 11% 547
Slide 35: Production – Alumina
Production – Alumina Alumina* (KT) 2,369 2,002 793 858 675 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9MFY22 ▪ Total Alumina production was up 27% YoY and 8% sequentially in Q3 FY22 ▪ Record Quarterly production at Utkal Alumina refinery at 563 Kt in Q3 FY22 *Hydrate as Alumina Hindalco Industries Limited 35
Slide 36: For Further Queries Please Contact: Subir Sen, Investor Relations
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.