Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY24 Earnings Presentation
39 slides from Hindalco Industries's earnings presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter for investor presentation
November 10, 2023 BSE Limited National Stock Exchange of India Limited Luxembourg Stock Exchange Scrip Code: 500440 Scrip Code: HINDALCO Scrip Code: US4330641022 Sub: Investor Presentation of the Board Meeting of Hindalco Industries Limited (‘the Company’) Ref: a. Regulation 30 (read with schedule I
Slide 2: Hindalco Industries Ltd Q2 FY24 Earnings Presentation
Hindalco Industries Ltd Q2 FY24 Earnings Presentation 10th Nov 2023
Slide 3: 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 4: Contents
Contents 1. Sustainability Updates 2. Financial performance at a glance 3. Economy & Industry Updates – Global & Domestic 4. Business Performance • Consolidated • Novelis • Aluminium : Upstream Business • Aluminium : Downstream Business • Copper 5. Summary – Key Takeaways 6. Annexures : • Consolidat
Slide 5: Sustainability Updates
Sustainability Updates
Slide 6: Hindalco India Business: Sustainability @Core
Hindalco India Business: Sustainability @Core Greenbelt and Biodiversity Workforce Health & Safety • All season BMP study completed for 12 mine • Initiatives for developing contractor safety sites and four units till H1. Study at two sites and management software (CSM) and one mine cluster are in pr
Slide 7: Hindalco: ESG metrics in Waste, Water, GHG, LTIFR & Fatality
Hindalco : ESG metrices in Waste, Water, GHG, LTIFR & Fatality % Recycling of Bauxite Residue/ Red mud % Recycling of Ash Aluminium Specific GHG Emissions (except from Utkal Refinery) (t CO2e/t) 111 108 105 104 103 91 19.82 19.82 81 73 19.58 19.18 H1FY21 H1FY22 H1FY23 H1FY24 H1FY21 H1FY22 H1FY23 H1F
Slide 8: Financial Performance at a glance
Financial Performance at a glance
Slide 9: Quarterly Financial Performance at a Glance (Q2FY24 Vs Q1FY24)
Quarterly Financial Performance at a Glance (Q2FY24 Vs Q1FY24) Particulars UOM Q1 FY24 Q2 FY24 Change QoQ Revenue ₹ in Cr 52,991 54,169 2% Business Segment EBITDA ₹ in Cr 6,069 6,896 14% EBITDA ₹ in Cr 6,109 6,096 - Consolidated PAT ₹ in Cr 2,454 2,196 -11% Shipments Kt 879 933 6% Revenue $ Billion
Slide 10: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic
Slide 11: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 6.0 5.6 5.4 9.8 10.3 8.5 8.3 8.3 8.7 4.3 7.4 8.0 3.9 6.6 7.0 7.2 3.5 3.5 3.6 3.5 3.4 3.6 3.5 6.4 6.5 3.0 2.9 3.0 5.5 3.9 4.2 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23F FY24F CY09 CY07 CY08 CY10 C
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price Aluminium (Cash-$/Ton) Production Consumption Metal Balance 2% 3% 0% 3% 3,280 51.4 52.4 17.5 18.1 52.0 52.2 17.5 18.1 (0.5) 0.3 (0.0) 0.0 2,875 2,395 2,354 2,324 2,258 2,154 29.8 30.7 30.2 31.5 21.5 21.7 10.3 10.7 2
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 1000 1178 1163 1130 1147 1294 247 218 196 213 196 164 478 453 477 410 443 418 502 490 506 508 564 418 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q2 FY24, the domestic demand is likely to reach 1
Slide 14: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ Global FRP Demand is estimated to decline by ~3% in CY23 (vs CY22 growth of 3%). Beverage Packaging Automotive Speciality Aerospace ▪ Supply chain inventory ▪ Pent-up demand increasing reduction is largely complete vehicle production ▪ Demand broadly m
Slide 15: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) Balance (MT) 5.2% 2.8% 19.2 18.9 18.2 18.4 -0.1 0.3 8.4 8.3 -0.1 10.6 1.8% 0.0 10.5 4.6% 2.3 2.0 0.8 0.9 6.2 6.5 6.3 6.4 -0.9 -0.8 3.6 9.9 10.6 2.7 2.7 7.8 8.6 3.5 -2.1 -2.0 2.7 2.9 3.6 3.7 YTD CY22 YTD CY
Slide 16: Domestic Copper Industry
Domestic Copper Industry Market Demand (kT) 196 194 201 187 190 173 45 49 54 57 56 33 140 142 141 142 137 145 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Domestic Supply Import ▪ In Q2 FY24, market demand increased by ~7% YoY at 201 kt vs 187 KT in Q2 FY23. ▪ On a sequential basis, In Q2 FY24, m
Slide 17: Consolidated Financial Performance
Consolidated Financial Performance
Slide 18: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 1,14,194 14,383 1,07,160 12,205 56,176 52,991 54,169 5,743 6,109 6,096 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 PBT after Exceptional Items (₹ Crore) PAT (₹ Crore) 9,188 6,324 6,548 4,650 2,2
Slide 19: Consolidated Debt and leverage
Consolidated Debt and leverage (₹ Crores) Particulars As on As on As on As on As on (Consolidated) 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 30-Sep-23 Gross Debt 61,536 59,720 58,337 57,382 56,578 Cash & Cash Equivalents 19,473 18,004 24,378 18,919 18,965 Net Debt 42,063 41,716 33,959 38,463 37,613 TT
Slide 20: Novelis
<j Pi cs a 3 = 4 a Novelis
Slide 21: Novelis: An Overview
Novelis : An Overview Overall Shipments (Kt) ▪ Sequential improvement in Adjusted EBITDA and EBITDA per ton in Q2 FY24 on account of recovery in overall shipments and higher utiliaation of scrap. 1,946 1,812 ▪ Shipments at 933 Kt, up by 6% QoQ, contributed largely by sequential increase in can shipm
Slide 22: Novelis Financial Performance
Novelis Financial Performance Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 9.9 1,067 519 548 514 499 8.2 479 905 4.8 506 484 4.1 4.1 421 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 ▪ Net sales in
Slide 23: Aluminium Upstream Performance
Aluminium Upstream Performance
Slide 24: Aluminium Upstream (India)
Aluminium Upstream (India) Shipments (Kt) Revenue (₹ Crore) 660 675 16,914 ▪ Shipments were 334 kt lower by 2% 15,942 171 175 QoQ 331 341 334 8,215 8,064 7,878 86 86 89 489 500 ▪ Revenues were down 2% QoQ due to 245 255 245 lower metal prices and shipments Q2FY23 Q1 FY24 Q2FY24 H1FY23 H1FY24 Q2FY23
Slide 25: Aluminium Downstream Performance
Aluminium Downstream Performance
Slide 26: Aluminium Downstream (India)
Aluminium Downstream# (India) Revenue (₹ Crore) Shipments (Kt) 5,624 ▪ In Q2 FY24 shipments was higher by 173 175 5,064 15% QoQ due to market recovery. 95 94 2,884 2,435 2,629 81 ▪ In Q2 FY24 Revenue was ₹2,629 crore, up by 8% QoQ on account of higher Q2FY23 Q1 FY24 Q2FY24 H1FY23 H1FY24 Q2FY23 Q1 FY
Slide 27: Copper Performance
Copper Performance
Slide 28: Copper
Copper Shipments : Copper Metal (Kt) Shipments : CC Rods (Kt) 252 198 ▪ Highest ever metal shipments at 213 164 134kt up by 13% QoQ 134 98 100 112 118 85 ▪ CC Rod shipments at 100Kt, up 2% QoQ in line with the market Q2 FY23 Q1 FY24 Q2FY24 H1 FY23 H1 FY24 Q2 FY23 Q1 FY24 Q2FY24 H1 FY23 H1 FY24 deman
Slide 29: Summary
Summary
Slide 30: Key Takeaways
Key Takeaways Copper continues to Novelis continues on a Resilient India Business Outperform strong recovery path • Strong balance sheet at India • Copper Business continues to • Recovery in Can shipments in Business, an enabler for organic deliver its best-ever quarterly Q2 FY24 vs Q1 FY24 by 12% g
Slide 31: Thank You
Thank You 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 21st Floor, One International Centre, Tower 4, Near Prabhadevi Railway Station, Senapati Bapat Marg, Prabhadevi, Mu
Slide 32: Annexures
=~ DT bn AP pe Soa Annexures 4 48
Slide 33: Consolidated: Key Financials
Consolidated : Key Financials Change QoQ Change Particulars (₹ Crore) Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 YoY % Change % YoY % Revenue from Operations 56,176 52,991 54,169 -4% 2% 1,14,194 1,07,160 -6% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 4,047 3,456 3,998 -
Slide 34: Hindalco (India) Business: Key Financials
Hindalco (India) Business : Key Financials YOY QoQ Particulars (₹ Crore) Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Change % Change % Change% Revenue from Operations 18,963 20,230 21,103 11% 4% 38,696 41,333 7% EBITDA Aluminium - Upstream 1,347 1,935 2,074 54% 7% 4,619 4,009 -13% Aluminium - Downstream
Slide 35: Aluminium (India) Business: EBITDA and Sales Reconciliation
Aluminium (India) Business : EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars (in Rs Cr) Q2FY23 Q1 FY24 Q2 FY24 H1 FY23 H1FY24 EBITDA - Upstream 1,347 1,935 2,074 4,619 4,009 EBITDA - Downstream 200 147 171 358 318 Intersegment Profit /(Loss) Elimination (Net) 437 (10) (1) 371 (
Slide 36: Production Trend
Production Trend Aluminium Upstream (Kt) Aluminium Downstream# (Kt) • Aluminium Upstream 178 179 Production were 334 kt, higher 659 665 by 1% QoQ 332 331 334 91 84 94 • Aluminium Downstream Q2FY23 Q1 FY24 Q2FY24 H1FY23 H1FY24 Q2FY23 Q1 FY24 Q2FY24 H1FY23 H1FY24 Production was 94 kt, higher by 12% Qo
Slide 37: Production – Total Alumina
Production – Total Alumina Alumina* (KT) 1,779 1,738 900 855 882 Q2FY23 Q1 FY24 Q2FY24 H1FY23 H1FY24 ▪ Total Alumina production was up 3% QoQ ▪ Of this production at Utkal Alumina refinery at 576 Kt in Q2 FY24, flattish QoQ *Hydrate as Alumina 36
Slide 38: Hindalco: ESG metrics in Waste, Water, GHG, LTIFR & Fatality
Hindalco : ESG metrices in Waste, Water, GHG, LTIFR & Fatality % Recycling of Bauxite Residue/ Red mud % Recycling of Ash Aluminium Specific GHG Emissions (except from Utkal Refinery) (t CO2e/t) 19.74 19.66 124 114 109 103 19.58 102 108 100 83 19.26 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 FY21 F
Slide 39: Q2 FY24: Earnings Concall
Q2 FY24 : Earnings Concall Earnings Conference Call is scheduled at 4:00 PM (IST) on November 10, 2023. 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 Num