Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY22 Earnings Presentation
37 slides from Hindalco Industries's earnings presentation, Nov 12, 2021
Slide 1: Hindalco Industries Limited Q2 FY22 Earnings Presentation
Hindalco Industries Limited Q2 FY22 Earnings Presentation 12th November, 2021
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 – Q2 FY22 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial – Q2 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 Total Bauxite Residue Environment (% Recycled from 3/4 Refineries) • 84% of waste recycled and reused in H1 FY22 100% • 90% of Red Mud from three out of four Alumina Refiners reused majorly in 90% Waste Recycling Cement Industries in H1 FY
Slide 6: Hindalco: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewable Energy Aluminium Sp. Energy (%) (Indexed to FY12 Base) Total Potential – 246 MW; Target to reach 200 MW by FY25 FY22 (Target 100 MW) – 56 MW of Solar projects already completed 83.9% 83.2% Status of 42 MW under implementation in FY22 82.5% 82.7% • 35
Slide 7: Business Performance Key Highlights - Q2 FY22
Business Performance Key Highlights - Q2 FY22 Hindalco Industries Limited 7
Slide 8: Key Highlights: Q2 FY22
Key Highlights : Q2 FY22 ▪ Shipments of 968Kt (923Kt), up 5% YoY driven by strong demand across all business segments ▪ Adjusted EBITDA at $553 million ($455 million), up 22% YoY on the back of higher volumes and favorable metal cost ▪ Record Adjusted EBITDA per ton at $571 ($493/t) up 16% YoY ▪ Net
Slide 9: Key Highlights: Q2 FY22 ...Contd.
Key Highlights : Q2 FY22 ...Contd. ▪ Both Smelters ran optimally despite Q2 being a monsoon quarter ▪ Cathode production was at 100Kt (73Kt) up 38% YoY ; CC Rods production was maintained YoY at 65Kt ▪ Metal sales volume at 110Kt (75Kt) up 47% YoY; CC Rods sales at 70kt (64Kt), up 10% YoY with the m
Slide 10: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 11: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.6 5.9 5.4 9.8 10.3 9.5 4.3 8.5 8.0 8.3 8.3 3.9 7.4 7.0 3.5 3.5 3.6 3.5 3.4 3.6 6.6 6.4 3.0 2.9 5.5 3.9 4.2 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E CY08 CY07 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY1
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 4% 12% 5% 2,647 5% 2,400 48.0 50.6 16.3 17.0 46.0 51.5 16.4 17.2 2.0 (0.9) (0.0) (0.3) 2,096 1,916 27.1 29.0 30.1 1,690 1,704 27.8 1,497 9.3 9.6 10.2 1
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 574 747 1018 1073 908 943 195 237 188 172 122 442 415 375 116 262 380 272 363 382 422 340 396 186 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q2 FY22 the Domestic demand is likely to record 943 K
Slide 14: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ The global FRP Demand is estimated to grow by ~9% in CY21 (vs CY20 contraction of ~4%) on account of demand recovery and base effect. Beverage Cans Automotive Specialities CY21E Growth in Market Demand 3-6% CY21E Growth in Market Demand 20-25% CY21E Gr
Slide 15: Copper Industry (Global)
Copper Industry (Global) Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 5.7% 6.9% 17.3 18.2 17.7 16.6 7.0 7.6 6.4% 8.9 9.3 4.3% 5.9 6.2 5.8 6.1 10.3 10.6 2.5 2.6 3.3 7.7 8.4 3.3 3.4 3.6 2.5 2.8 Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q3 Q1-Q3 Q3 Q3 CY20 CY21 CY20 CY21 CY20 CY21 CY20 CY21 Produ
Slide 16: Copper Industry (Domestic)
Copper Industry (Domestic) Domestic Demand (KT) 165 161 160 150 59 42 43 37 118 91 44 40 113 119 117 106 74 51 Q1FY21 Q2 FY21 Q3FY21 Q4FY21 Q1FY22 Q2 FY22 Domestic Supply Import ▪ Domestic market demand grew by 7% YoY at 160 KT in Q2 FY22 vs 150 KT in Q2 FY21. ▪ Refined Copper demand improved by 36%
Slide 17: Business Performance: Q2 FY22
Business Performance : Q2 FY22 Hindalco Industries Limited 17
Slide 18: Novelis
Novelis Hindalco Industries Limited 18
Slide 19: Operational Performance – Novelis
Operational Performance – Novelis ▪ Continued exceptional quarterly financial performance backed by favorable markets and Overall Shipments (KT) operational excellence in Q2 FY22 1,941 ▪ Beverage packaging and specialty product shipments benefited from continuing strong market 1,697 demand across al
Slide 20: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 8.0 1,108 570 571 571 493 417 5.4 708 4.1 555 553 3.9 455 3.0 Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 ▪ Net sales in Q2 FY22 stan
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 5% 170 YoY and 1% QoQ 641 598 ▪ Aluminum VAP production was 96 307 319 322 86 84 higher by 36% YoY in Q2 FY22 62 ▪ Alumina production in Q2 FY22 was a
Slide 23: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 14,079 5,599 9,232 7,812 3,247 6,267 2,352 2,161 4,796 1,188 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1FY22 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1FY22 ▪ Aluminium revenues were up 63% YoY, with ▪ Record EBITDA at ₹3,247 crore, up 173% Yo
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 163 109 higher by 38% YoY in Q2 92 114 FY22 whereas Copper Rods 100 65 65 73 Production was maintained 63 44 YoY Q2FY21 Q1FY22 Q2FY22 H1 FY21 H1 FY22 Q2FY21 Q1FY22 Q2FY2
Slide 26: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 16,681 613 9,587 352 7,805 307 7,094 261 242 4,774 Q2FY21 Q1FY22 Q2FY22 H1 FY21 H1 FY22 Q2FY21 Q1FY22 Q2FY22 H1 FY21 H1 FY22 ▪ Revenues were up by 101% YoY in Q2 FY22, on ▪ EBITDA at ₹352 crore in Q2 FY22 compared to account
Slide 27: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 27
Slide 28: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 89,023 14,838 56,520 47,665 8,048 7,530 41,358 6,790 31,237 5,171 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1 FY22 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1 FY22 PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore) 9,595 6,
Slide 29: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 Gross Debt 78,266 71,996 65,994 67,836 66,831 Cash & Cash Equivalents 20,265 18,194 18,575 15,923 18,820 Net Debt 58,001 53,802 47,419 51,913 48,011 TTM Adjusted EBITDA
Slide 30: In Summary
In Summary Hindalco Industries Limited 30
Slide 31: 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 32: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 33: Annexures
Annexures Hindalco Industries Limited 33
Slide 34: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1 FY22 YoY % Change % YoY % Revenue from Operations 31,237 41,358 47,665 53% 15% 56,520 89,023 58% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,392 4,090 4,100 21% 0
Slide 35: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ Particulars Q2 FY21 Q1 FY22 Q2 FY22 H1 FY21 H1 FY22 Change % Change % Change% Revenue from Operations 9,565 13,349 17,393 82% 30% 17,029 30,742 81% EBITDA Aluminium 1,188 2,352 3,247 173% 38% 2,161 5,599 159% Copper 242 261 352 45% 35% 307
Slide 36: Production – Alumina
Production – Alumina Alumina* (KT) 1,511 1,327 705 718 793 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1FY22 ▪ Total Alumina production was up 13% YoY and 10% sequentially in Q2 FY22 ▪ Record Quarterly production at Utkal Alumina refinery at 504 Kt in Q2 FY22 *Hydrate as Alumina Hindalco Industries Limited 36
Slide 37: 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.