Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY2016 Earnings Presentation
26 slides from Hindalco Industries's earnings presentation, Aug 11, 2015
Slide 1: Hindalco Industries Ltd Q1 FY2016
HINDALCO INDUSTRIES LTD … Q1 FY2016
Slide 2: Highlights and Financial Performance; Aluminium and Copper Review
Highlights and Financial Performance Review – Aluminium Business Review – Copper Business
Slide 3: Global Economy – Uncertain times?
Global Economy – Uncertain times? Uncertainty leading to risk averseness… – Mixed signals: US recovering, While Europe struggling – China slow down has resulted in sharp uncertainty around commodity consumption growth – Strengthening dollar, impending fears about Fed increasing interest rates led to
Slide 4: Aluminium: Realizations collapsed
Aluminium: Realizations collapsed… 2,200 LME – Al ($/t) Weakness in commodity markets, with increased 2,000 1,800 concerns on Chinese economy 1,600 Al Market balance again in excess; significant 1,400 1,200 surpluses projected for 2015 and 2016 1,000 Inadequate supply side response; China cont
Slide 5: Q1 FY16: Highlights… Strong Operational Performance
Q1 FY16: Highlights… Strong Operational Performance Aluminium Volumes continue to grow as facilities ramp up (India) Higher Revenues despite sharp fall in realisations Captive coal expected soon Strong Auto sheet Ramp up Novelis Strategic rolling expansions driving higher shipments Robus
Slide 6: Highlights: Q1 FY16
Highlights: Q1 FY16 Highest Ever Volumes YOY Higher Volumes offset the impact Revenues 7% of lower LME & Premium PBITDA 11% Strong operational Performance On the back of ramp-up of new India Metal Volume (Al) 39% smelters Copper Cathode Volume 7% Highest ever Production Improved operational performa
Slide 7: Financial Performance
Financial Performance: Change % Change (`) Cr Q1 FY16 Q1 FY15 Q4 FY15 YoY %QOQ Net Sales 8,575 7,996 7% 9372 (9%) Other Income 194 216 (10)% 230 (16%) PBITDA 1,072 965 11% 1,078 (1%) Depreciation (332) (187) 77% (238) 39% Interest (602) (338) 78% (466) 29% PBT before 138 440 (69)% 374 (63%) exceptio
Slide 8: Financial Performance – Q1 FY16
Financial Performance – Q1 FY16 Despite challenging macro economic circumstances operating profit was higher but sharp Rise in interest & Depreciation led to lower PAT 107 145 Interest ↑ PBITDA ↑ Dep ↑ 328 264 Tax↓ 82 107 Q1 FY15 Q1 FY16 PAT PAT
Slide 9: Segmental Performance – Q1 FY16
Segmental Performance – Q1 FY16 Aluminium Copper C.E. 87% 13% SALES 46% 54% EBIT 42% 58%
Slide 10: Aluminium Business
ADITYA BIRLA HINDALCO Aluminium Business
Slide 11: Al: External Drivers
Al: External Drivers Q1FY16 Q1 FY15 Q4 FY 16 LME ($/t) 1,769 1,798 1801 INRUSD 63.47 59.35 62.24 MJP 198 374 377 Realisations declined as both LME and Premium dropped Re mildly supportive but much higher depreciation in other currencies led to sharp fall in global cost curve.. Negating any benefit
Slide 12: Al: Robust Operational Performance
Al: Robust Operational Performance (Figures in Kt = ’000 tonnes) Record volumes on the back of ramp-up of expansion projects Alumina (incl. Utkal) Al Metal 264 29% 644 39% 498 190 117 330 45 208 290 314 145 148 Q1 FY 15 Q1 FY 16 Q1 FY 15 Q1 FY 16 From Greenfield projects
Slide 13: New Smelters: ramping Up
New Smelters: ramping Up Mahan Q1FY16: 75 kt 100% 75% Q1FY16: 42 kt 50% Aditya Grid failure 25% in Jul-14 0%
Slide 14: Utkal – Efficiency gains kicking in
Utkal – Efficiency gains kicking in 100% Plant operating close to full capacity level 332 KT 75% 50% Amongst world’s lowest cost and one of the best quality producers of alumina 25% Long distance conveyor under commissioning 0% Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 * Hyd
Slide 15: Aluminium: Financial Performance
Aluminium: Financial Performance Net Sales (` Cr) EBIT (` Cr) 320 306 4,141 3,966 254 3,011 Q1 FY15 Q4 FY15 Q1 FY16 Q1 FY15 Q4 FY15 Q1 FY16 YOY – Revenue up 32% EBIT declined on account of lower realisation & sharp increase in depreciation
Slide 16: Novelis
J ‘ Novelis ce NOVELIS
Slide 17: Novelis- Q1 FY16 Highlights
Novelis- Q1 FY 16 Highlights YOY basis FRP Shipments at 768 KT down 2 KT Record Global Auto shipments Up 68% Revenues declined by 2% on account of lower LME and lower regional Premium Excluding Metal Price lag Ebidta declined 9% to $ 212 Mn Ebidta including negative $ 85 Mn metal price lag was
Slide 18: Novelis- Metal Price lag
Novelis- Metal Price lag… Challenging macro economic environment
Slide 19: Novelis- Summary
ADITYA BIRLA Novelis- Summary HINDALCO = Uncertain market factors to continue = FRP demand solid but economic uncertainty causing select market softness = Stronger US dollar causing headwinds in Europe = Negative metal price lag expected in Q2FY16 = Focus on fundamentals of manufacturing operations
Slide 20: Copper Business
ADITYA BIRLA Copper Business
Slide 21: Cu: Favourable Industry Trends
Cu: Favourable Industry Trends… Impact Q1 FY 16 Vs. Q1 FY 15 (YoY) TCRC Higher LME ($/t) Lower Exch. Rate (`/$) Acid Price Higher DAP Realization Stable
Slide 22: Strong Production growth
Cathode DAP Highest ever 119% 78 7% 102 36 96 Q1 FY 15 Q1 FY 16 Q1 FY 15 Q1 FY 16 Strong Production growth
Slide 23: Copper: Financial Performance
Copper: Financial Performance Net Sales (` Cr) EBIT (` Cr) 390 5,238 344 4,990 4,614 317 Q1 FY15 Q4 FY15 Q1 FY16 Q1 FY15 Q4 FY15 Q1 FY16 Consistent Performance
Slide 24: In Summary
In Summary … Strong operational performance in Q1FY16, but external environment has worsened significantly New factories ramping up well; volume growth expected to continue Copper business likely to maintain its performance on the back of robust operations and favourable value drivers Novelis’ strat
Slide 25: Thank you
Thank you REGISTERED OFFICE Century Bhavan, 3rd Floor, Dr. Annie Besant Road, Worli, Mumbai 400 030 Telephone- +91 22 6662 6666 Website www.hindalco.com E mail hindalco@adityabirla.com Corporate Identity No. L27020MH1958PLC011238
Slide 26: Forward Looking & Cautionary Statement
Forward Looking & Cautionary Statement 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
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