Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY24 Earnings Presentation
45 slides from Hindalco Industries's earnings presentation, May 24, 2024
Slide 1: Earnings Presentation 24 May 2024
I N D U S T R I E S L I M I T E D EARNINGS 24 May 2024 PRESENTATION 1
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: Sustainability Updates
Q4 FY24 EARNINGS SUSTAINABILITY Updates 3
Slide 4: Top 1% S&P Global ESG score in the Aluminium Industry
Sustainability updates Hindalco achieved the Achievements Top 1% S&P Global ESG score in the Aluminium Industry Only 2 Indian companies are in the Top 1% S&P Global ESG score 9400 759 Companies assessed globally Companies qualified to be included in yearbook 2024 66 Companies in Top 1% across all th
Slide 5: Recycling of industrial wastes for a circular economy
Recycling of industrial wastes for a Sustainability updates circular economy Sustainability Initiatives 84% of total waste 109% of bauxite residue Zero Waste to landfill 15 of our plants and 1 recycled & reused (excluding Utkal) and certifications for 3 plants mine have been certified in FY24 108% o
Slide 6: Initiatives to conserve precious water resources
Hindalco has taken various initiatives to Sustainability updates Sustainability Initiatives conserve precious Water Resources Desalination ZLD (Recycling) Water Positivity: R&D Project : project and Projects: Total waste water Dahej - Arsenic Tertiary Water Taloja and Recycled and re- precipitation
Slide 7: Protecting Biodiversity
Sustainability updates Sustainability Initiatives At Hindalco, our unwavering commitment to Protecting Biodiversity is intricately woven into our sustainability targets. GREENBELT AND BIODIVERSITY All season study under CII Biodiversity Total 2,48,494 Biodiversity Management Index and Carbon Tons of
Slide 8: Shift to Green Energy across Hindalco
We are rapidly making the shift to Sustainability updates Sustainability Initiatives Green Energy across Hindalco 173MW 29MW 100MW 300MW 21 MW of Wind 29 MW Solar & 100 MW Target to based RE installed Wind - to be Hybrid (with reach 300 at Belagavi in Q4 operational by storage), to be MW by FY24 tak
Slide 9: Health and Safety of the workforce
Sustainability updates Health and Safety of Hindalco’s workforce is Sustainability Initiatives crucial to fostering a thriving and successful organisation Successfully Introduced Management Developed a virtual Serious Injury Fatality (SIF) implemented of Change (MOC) reality-based safety prevention
Slide 10: Quarterly Financial Snapshot
Q4 FY24 EARNINGS QUARTERLY Financial Snapshot 10
Slide 11: Financial Snapshot YoY (Q4 FY24 vs Q4 FY23)
Financial Snapshot Consolidated Financial Performance YoY (Q4 FY24 vs Q4 FY23 ) Novelis, Aluminium and Copper Businesses Change Particulars UOM Q4 FY23 Q4 FY24 YoY Shipments KT 936 951 2% All Businesses Consolidated (₹ Crore) Revenue $ Billion 4.40 4.08 -7% Business Segment EBITDA $ Million 403 514
Slide 12: Financial Snapshot FY23 vs FY24
Financial Snapshot Consolidated Financial Performance FY23 Vs FY24 Novelis, Aluminium and Copper Businesses Change Particulars UOM FY23 FY24 YoY Shipments KT 3,790 3,673 -3% All Businesses Consolidated (₹ Crore) Revenue $ Billion 18.49 16.21 -12% Business Segment EBITDA $ Million 1,811 1,873 3% FY24
Slide 13: Economy & Industry Updates
Q4 FY24 EARNINGS ECONOMY & Industry Updates 13
Slide 14: Global Economy
Global Economy Economy & Industry Updates Global GDP GDP Growth (% YoY) Global GDP growth resilient, projected at 3.2% in 2024 and 2025, mirroring its 2023 -0.1 5.4 4.3 3.5 3.5 3.6 3.5 3.4 3.9 3.6 2.9 6 3.5 3.2 3.2 3.2 pace. (IMF, April 2024) CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY
Slide 15: Indian Economy
Indian Economy Economy & Industry Updates Domestic GDP GDP Growth (% YoY) 10.3 8.5 8.3 8.3 8.7 8 7.6 7.4 7 7.2 7 India’s economic 6.6 6.4 momentum robust 5.5 FY25 GDP growth 3.9 4.2 estimated at 7.0%. (RBI) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24F FY25F -6.6 O
Slide 16: Global Aluminium Demand & Supply Balance
Global Aluminium Demand Economy & Industry Updates & Supply Balance Global Aluminium Industry ( In Million Tons) Production Consumption Metal Balance 80.0 3% 80.0 1% 70.6 70.1 68.8 69.2 70.0 70.0 60.0 60.0 50.0 50.0 40.0 41.5 40.0 0.6 40.1 42.9 40.8 30.0 30.0 29.1 4% 0.8 0.5 28.8 6% -0.4 28.4 1.9 27
Slide 17: Industry Demand for Domestic Aluminium
Industry demand Economy & Industry Updates for Domestic Aluminium Domestic Aluminium Industry ( In Kilo Tons) 1335 1266 1220 1173 1163 1130 1147 1000 In Q4 FY24, the domestic demand is likely to reach 1,220 Kt (5% growth YoY) primarily led by strong demand in Electrical while scrap 612 imports saw a
Slide 18: Aluminium Flat Rolled Products
Industry demand Economy & Industry Updates Aluminium Flat Rolled Products Aluminum FRP Industry Global FRP Demand is estimated to grow by ~4% in CY24. Beverage Packaging Automobile Specialty Aerospace CAGR 4% - CY23-31 (Ex China) CAGR 7% (CY23-28) Growth Rate @Global GDP% CAGR 5% (CY23-30) • Supply
Slide 19: Global Copper Demand & Supply Balance
Global Copper Demand & Supply Balance Economy & Industry Updates ( In Million Tons) Global Copper Industry Production Consumption Metal Balance 30.0 30.0 3.6% 2.8% 25.6 25.6 24.7 24.9 25.0 25.0 20.0 20.0 14.6 14.1 14.1 15.0 15.0 13.6 -0.2 0 11.5 11.3 10.6 10.9 2.8 3.1 0.5 0.4 10.0 0.1% 10.0 1.3% 0.8
Slide 20: Domestic Refined Copper Demand
Domestic Refined Copper Demand Economy & Industry Updates ( In Kilo Tons) Domestic Copper Industry 225 201 198 196 In Q4 FY24, 194 187 190 market demand increased by 173 ~15% YoY at 225 kt vs 196 KT in Q4 FY23. 158 145 On a sequential 140 142 141 142 basis, in Q4 FY24, 137 133 market demand increase
Slide 21: Consolidated Financial Performance
Q4 FY24 EARNINGS Consolidated Financial Performance 21
Slide 22: Key Metrics
Key Metrics Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 7,201 55,857 55,994 52,808 6,322 2,23,202 5,818 25,728 24,131 2,15,962 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 PBT after Exceptional Items (₹ Crore) Profit after Tax (₹ Crore) 4,136 3,174 14
Slide 23: Net Debt to EBITDA (x)
Debt & Leverage Consolidated Financial Performance Consolidated Debt (₹ Crore) Particulars (Consolidated) 31-Mar-23 30-Jun-23 30-Sep-23 31-Dec-23 31-Mar-24 Gross Debt 58,337 57,382 56,578 53,402 54,501 Treasury Balance 24,378 18,919 18,965 18,566 22,965 Net Debt 33,959 38,463 37,613 34,835 31,536 TT
Slide 24: Novelis Performance
Q4 FY24 EARNINGS Novelis Performance 24
Slide 25: Operational Performance
Operational Performance Novelis Performance Novelis has made significant progress across all it’s business segments Expansion projects on track* Shipments at 951 KT Increased Overall steady to Record full ,up 2% YoY primarily Recycled content improving year due to increased in FY24 at 63% demand tre
Slide 26: Financial Performance
Financial Performance Novelis Performance Adjusted EBITDA ($ Million) Adjusted EBITDA per tonne ($/tonne) In Q4 FY24, up 28% YoY, significant improvement was driven by favorable metal Q4 FY24, up 25% YoY benefit from recycling and lower operating costs 540 514 499 510 1873 454 431 478 1811 403 Q4 FY
Slide 27: Aluminium Upstream Performance
Q4 FY24 EARNINGS Aluminium Upstream Performance 27
Slide 28: Aluminium: Upstream
Aluminium: Upstream Aluminium : Upstream Performance Operational and Financial Performance Shipments (KT) Revenue (₹ Crore) In Q4FY24 up 4% YoY In Q4FY24 up 5% YoY due to higher shipments 8,469 333 337 323 1,346 8,050 7,971 33,010 1,319 32,382 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY2
Slide 29: Aluminium Downstream Performance
Q4 FY24 EARNINGS Aluminium Downstream Performance 29
Slide 30: Aluminium: Downstream
Aluminium: Downstream # Aluminium : Downstream Performance # includes Flat Rolled Products, Foils & Extrusions Operational and Financial Performance Shipments (KT) Revenue (₹ Crore) IN Q4 FY24, up by 7% YoY on account of higher volumes. In Q4 FY24, up 17% YoY on account of market recovery 105 11,009
Slide 31: Copper Performance
Q4 FY24 EARNINGS Copper Performance 31
Slide 32: Copper Performance
Copper Performance Copper Business Operational and Financial Performance Shipments: Metal (KT) Shipments: CC Rods (KT) In Q4FY24 metal shipments was at record 135 KT up 16% YoY in Q4 FY24, up 3% YoY 135 506 389 98 95 93 347 119 439 117 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 F
Slide 33: Awards & Recognition
Q4 FY24 EARNINGS Awards & Recognition 33
Slide 34: Awards & Recognitions FY 2023-24
Awards & Recognitions FY 2023-24 Awards & Recognitions Hindalco is in Top 10 of Hindalco recognised Hindalco is the Most Hindalco wins Energy the ‘Great Place to among India’s Best Sustainable Aluminium Transition Work’ list in Health and Workplaces in Company in the world Changemaker Award Wellness
Slide 35: Key Takeaways
Q4 FY24 EARNINGS Key Takeaways 35
Slide 36: Key Take Aways
Key Take Aways Summary delivered Novelis reflecting a stronger Bay Minette project is $540 EBITDA/ton in Q4 recovery on track and to be Record full year automotive completed in 2H CY26 shipments Copper continues All time high EBITDA Focus on VAP India’s first Copper and to deliver record in Q4 FY24
Slide 37: Key Take Aways: Resilient India Business
Key Take Aways Summary (Continued) Resilient India Strong balance sheet, Resource securitization and Consolidated Net Debt Business an enabler for organic India downstream expansion to EBITDA at 1.21x as growth for enhanced margins in focus on 31st March 2024 Focus Achieved 57% target of Hindalco li
Slide 38: Our way forward…
Key Take Aways Summary (Continued) All Organic All committed organic growth projects of ~$4.9 billion in Expansion Novelis & ~$2.0 billion projects in Hindalco India are Projects on on track track Shift from metal Committed to Continue to focus on manufacturer to a maintain strong shareholder value
Slide 39: Thank You
I N D U S T R I E S L I M I T E D For Further Queries Please Contact : Registered Office Thank Subir Sen, Investor Relations 21st Floor, One Unity Centre, Senapati Bapat Marg, Prabhadevi, Mumbai – 400013 You Telephone +91 22 6662 6666 E mail: hilinvestors@adityabirla.com Website: www.hindalco.com Te
Slide 40: Consolidated: Key Financials
Consolidated : Key Financials Financials Consolidated Change QoQ Change Particulars (₹ Crore) Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 YoY % Change % YoY % Revenue from Operations 55,857 52,808 55,994 0% 6% 2,23,202 2,15,962 -3% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,
Slide 41: Hindalco (India) Business: Key Financials
Hindalco (India) Business : Key Financials Financials Hindalco (India) Business YOY QoQ Particulars (₹ Crore) Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Change % Change % Change% Revenue from Operations 20,444 20,766 22,930 12% 10% 78,570 85,029 8% EBITDA Aluminium - Upstream 2,192 2,443 2,709 24% 11% 8,402
Slide 42: Aluminium (India) Business: EBITDA and Sales Reconciliation
Aluminium (India) Business : EBITDA and Sales Reconciliation Financials Hindalco (India) Business Aluminium Business EBITDA Particulars (in Rs Cr) Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 EBITDA - Upstream 2,192 2,443 2,709 8,402 9,161 EBITDA - Downstream 112 103 152 627 573 Intersegment Profit /(Loss) Eli
Slide 43: Production Trends
Operational Performance Production Trends Hindalco (India) Business Aluminium Upstream (KT)* Aluminium Downstream# (KT)* In Q4FY24, down 1% YoY In Q4FY24, up 18% YoY 334 332 100 367 328 1,322 1,331 350 89 84 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Copper Cathode (KT) Copp
Slide 44: Production – Alumina
Production – Alumina Operational Performance Hindalco (India) Business Alumina* (KT) 961 966 3,665 3,525 861 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 • Total Alumina production was up 12% YoY • Of this production at Utkal Alumina refinery at 648 KT in Q4 FY24, up 16% YoY *Hydrate as Alumina 44
Slide 45: Q4 FY24: Earnings Concall
Q4 FY24 : Earnings Concall Earnings Conference Call is scheduled at 4:00 PM (IST) on May 24, 2024. 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 TollFree Numbers