Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY23 Earnings Presentation
39 slides from Hindalco Industries's earnings presentation, Nov 11, 2022
Slide 1: Hindalco Industries Limited Q2 FY23 Earnings Presentation
Hindalco Industries Limited Q2 FY23 Earnings Presentation 11th November, 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 – Q2 FY23 2. Key Highlights – Q2 FY23 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial - Novelis - Aluminium : Upstream Business - Aluminium : Downstream Business • Aluminium - Copper - Consolidat
Slide 4: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 5: ESG Score
2022 S&P Global Corporate Sustainability Assessment (CSA) ESG Score 83 • Hindalco scored ESG score of 83 in the 2022 S&P Global Corporate Sustainability Assessment, an improvement of 10 points over the last year. • Overall score 83/100 (vs 73/100 in 2021) • Environment- 90 • Social dimension-87 • Go
Slide 6: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Environment Total Bauxite Residue except from Utkal Refinery Zero waste to landfill by 2030 111.2% 100.0% 102.3% • 82% of total waste got recycled and reused (w/w of generation) in H1 FY23. • 111% of Bauxite Residue from three out of four
Slide 7: 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); Of this 100 MW already 19.78 19.74 19.66 installed till FY22 • Projects Commissioned till H1 FY23 - 9 MW 19.18 • 33 TPH steam + 4 MW Power wit
Slide 8: Business Performance Key Highlights - Q2 FY23
Business Performance Key Highlights - Q2 FY23 Hindalco Industries Limited 8
Slide 9: Key Highlights: Q2 FY23
Key Highlights : Q2 FY23 ▪ Performance impacted by rising input costs and unfavorable macros, partially offset by higher volumes and better realisations ▪ Quarterly EBITDA at ₹5,743 crore (₹8,045 crore), down 29% YoY ▪ Quarterly PAT from continuing operations at ₹2,205 crore (vs ₹3,427 crore) down 3
Slide 10: Key Highlights: Q2 FY23 ...Contd.
Key Highlights : Q2 FY23 ...Contd. ▪ EBITDA at ₹1,347 crore (vs ₹3,128 crore) down 57% YoY, impacted by rising input costs and unfavorable macros; EBITDA margins at 16.4% (vs 42.2%) ▪ EBITDA per ton at $495 (vs $1,207/ton), down 59% YoY. Aluminium ▪ Total shipments of primary aluminium at 341Kt (vs
Slide 11: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 11
Slide 12: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.6 6.0 5.4 9.8 10.3 8.5 8.7 4.3 3.5 3.5 3.6 3.5 3.4 3.9 3.6 6.6 7.4 8.0 8.3 8.3 7.0 7 3.0 3.2 6.4 2.9 2.7 5.5 3.9 4.2 CY16 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY17 CY18 CY19 CY20 CY21 CY22F CY23F -0.1 -3.2 -6.6 ▪ Global gro
Slide 13: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 2% 4% 1% 1% 3,267 50.5 51.6 16.9 17.6 51.5 51.9 17.3 17.5 (0.9) (0.3) (0.4) 0.1 2,882 2,762 2,648 2,400 2,354 30.0 30.1 30.0 0.2 0.3 0.3 29.0 2,096 (0.
Slide 14: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand of Aluminium (in Kt) 908 939 1030 1038 1000 1178 215 161 221 164 188 162 462 450 394 418 381 380 419 422 418 502 340 396 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q2 FY23, the domestic demand is lik
Slide 15: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ Global FRP Demand is estimated to grow by ~3% in CY22 (vs CY21 growth of ~11%). 1. Beverage Cans 2. Automotive 3. Specialities 4. Aerospace • Broadly stable demand for • High levels of pent-up auto • High order backlog in building • Consumer air travel
Slide 16: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 2.0% 6.0% 18.6 19.3 18.2 18.2 8.3 8.6 10.4 10.6 3.0% 8.0% 6.1 6.3 6.1 6.6 3.5 3.5 9.9 10.7 2.7 2.9 7.8 8.0 2.6 2.7 3.5 3.8 YTD CY21 YTD CY22 Q3 CY21 Q3 CY22 YTD CY21 YTD CY22 Q3 CY21 Q3 CY22 China World ex
Slide 17: Domestic Copper Industry
Domestic Copper Industry Domestic Demand (kT) 192 188 172 173 160 162 33 33 45 99 118 43 38 44 124 139 140 143 117 93 74 Q4 FY20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Domestic Supply Import ▪ In Q2 FY23, market demand increased by ~18% YoY at 188 kt vs 160 KT in Q2 FY22. ▪ On a sequential
Slide 18: Business Performance: Q2 FY23
Business Performance : Q2 FY23 Hindalco Industries Limited 18
Slide 19: Novelis
Novelis Hindalco Industries Limited 19
Slide 20: Operational Performance – Novelis
Operational Performance – Novelis Overall Shipments (KT) ▪ Strong quarterly production and shipments, despite challenging headwinds from inflationary pressures, stronger US dollar, and lower metal benefits. 1,941 1,946 ▪ Increasing customer preference for sustainable packaging options are driving hi
Slide 21: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 9.9 1,108 1,067 571 583 571 514 548 8.0 5.1 553 561 4.8 506 4.1 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 ▪ Net sales in Q2FY23 sta
Slide 22: Aluminium: Upstream Performance
Aluminium : Upstream Performance Hindalco Industries Limited 22
Slide 23: Aluminium Upstream Business
Aluminium Upstream Business Production (Kt) Shipments (Kt)* ▪ Production up 3% YoY and Shipments 674 673 were down 3% YoY 641 659 ▪ Revenue was up 11% YoY, with higher 350 333 341 322 327 332 volumes and better pricing ▪ EBITDA at ₹1,347 crore, down 57% YoY in Q2FY23 on account of higher input Q2 FY
Slide 24: Aluminium: Downstream Performance
Aluminium : Downstream Performance Hindalco Industries Limited 24
Slide 25: Aluminium Downstream Business
Aluminium Downstream# Business Production (Kt) Sales (Kt) ▪ In Q2 FY23 production was higher by 168 173 170 172 5% and Sales by 11% YoY. 95 ▪ Revenues were up 13% YoY, with 84 84 88 86 78 higher volumes and better pricing in Q2 FY23 vs Q2 FY22 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 Q2 FY22 Q1 FY23 Q2
Slide 26: Copper
Copper Hindalco Industries Limited 26
Slide 27: 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 165 105Kt whereas Copper Rods 197 163 114 Production was 86Kt in Q2FY23 up 79 86 100 92 105 70 5% and 23% respectively Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY2
Slide 28: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 20,187 1,109 16,681 9,587 10,529 9,658 565 613 544 352 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 ▪ Revenues were up by 1% YoY in Q2 FY23, on ▪ EBITDA at ₹544 crore in Q2 FY23 compared to account of
Slide 29: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 29
Slide 30: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 1,14,194 14,835 14,383 89,023 8,045 8,640 58,018 56,176 47,665 5,743 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 PBT after Exceptional Items (₹ Crore) PAT from Continuing Operations (₹ Crore) 9,595
Slide 31: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 Gross Debt 66,831 65,817 63,237 64,023 61,536 Cash & Cash Equivalents 18,820 22,084 24,141 21,830 19,473 Net Debt 48,011 43,733 39,096 42,193 42,063 TTM Adjusted EBITDA
Slide 32: Our Strategic Priorities
Our Strategic Priorities Robust Capital Structure Value Enhancing Growth ESG Commitments Portfolio Enrichment Our Approach Our Approach Our Approach Our Approach • Robust approach to • Strong focus on • Focus on ESG by • Advancing from Capital Allocation expanding capacities taking sustainability ma
Slide 33: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 34: Annexures
Annexures Hindalco Industries Limited 34
Slide 35: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 YoY % Change % YoY % Revenue from Operations 47,665 58,018 56,176 18% -3% 89,023 1,14,194 28% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 4,100 4,334 4,047 -1%
Slide 36: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials YOY QoQ Particulars (₹ Crore) Q2 FY22 Q1 FY23 Q2 FY23 H1 FY22 H1 FY23 Change % Change % Change% Revenue from Operations 17,393 19,733 18,963 9% -4% 30,742 38,696 26% EBITDA Aluminium - Upstream 3,127 3,272 1,347 -57% -59% 5,452 4,619 -15% Aluminium - Downst
Slide 37: Aluminium (India) Business EBITDA and Sales Reconciliation
Aluminium (India) Business EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars (in Rs Cr) Q2FY22 Q1 FY23 Q2FY23 H1 FY22 H1FY23 EBITDA - Upstream 3,127 3,272 1,347 5,452 4,619 EBITDA - Downstream 76 158 200 115 358 Intersegment (Profit) /Loss Elimination (Net) (52) (66) 437 (135) 37
Slide 38: Production – Alumina
Production – Alumina Alumina* (KT) 1,779 1,511 878 900 793 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 ▪ Total Alumina production was up 13% YoY and 2% sequentially in Q2 FY23 ▪ Quarterly production at Utkal Alumina refinery at 576 Kt in Q2 FY23 *Hydrate as Alumina Hindalco Industries Limited 38
Slide 39: 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.