Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY25 Earnings Presentation
40 slides from Hindalco Industries's earnings presentation, Nov 11, 2024
Slide 1: Earnings Presentation
I N D U S T R I E S L I M I T E D EARNINGS 11 Nov 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
Q2 FY25 EARNINGS SUSTAINABILITY Updates 3
Slide 4: Highest DJSI score and leadership in aluminium industry
Hindalco achieved its highest score till date and maintains its Sustainability updates leadership position in the aluminium industry in The DJSI rankings Hindalco Sustainability Initiatives GREEN ENERGY & EMISSIONS CONTROL Achieved a score of 87* in the S&P Global CSA 2024 Highest ever DJSI score fo
Slide 5: Recycling of industrial wastes for a circular economy
Recycling of industrial wastes for a Sustainability updates circular economy Hindalco Sustainability Initiatives 79% of total waste recycled 111% of bauxite residue and reused in H1 FY25 Vs (excluding Utkal) and 99% of Ash 84% in H1 FY24 was recycled and re-used in the cement industry in H1 FY25 WAS
Slide 6: Initiatives to conserve water resources
Hindalco has taken various initiatives to Sustainability updates Hindalco Sustainability Initiatives conserve precious Water Resources Water Positivity: Zero Liquid Discharge Water Recycling: 9.34 Certification assessment of 5 Projects: (15/19 sites are million m³ of wastewater units (Aditya, Utkal,
Slide 7: Protecting biodiversity
Sustainability updates Hindalco Sustainability Initiatives At Hindalco, our unwavering commitment to Protecting Biodiversity is intricately woven into our sustainability targets. GREENBELT AND BIODIVERSITY A pilot project for the Assessments for developing removal of invasive Biodiversity Management
Slide 8: Shift to green energy across Hindalco
We are rapidly making the shift to Sustainability updates Hindalco Sustainability Initiatives Green Energy across Hindalco GREEN ENERGY & EMISSIONS CONTROL 183 MW 15 MW 100 MW ~300 MW Total renewable 100 MW Target to 6 MW Solar - to be capacity stands at 183 Hybrid (with reach 300 MW operational by
Slide 9: Health and safety of workforce
Sustainability updates Health and Safety of Hindalco’s workforce is Hindalco Sustainability Initiatives crucial to fostering a thriving and successful organisation Concentrating Established a Safety Launched a large-scale on initiatives Standards Implementation awareness campaign called aimed at Com
Slide 10: Quarterly Financial Snapshot
Q2 FY25 EARNINGS QUARTERLY Financial Snapshot 10
Slide 11: Financial Snapshot YoY (Q2 FY25 vs Q2 FY24)
Financial Snapshot Consolidated Financial Performance YoY (Q2 FY25 vs Q2 FY24 ) Novelis, Aluminium and Copper Businesses Change Particulars UOM Q2 FY24 Q2 FY25 All Businesses Consolidated (₹ Crore) YoY Shipments KT 933 945 1% Revenue $ Billion 4.1 4.3 5% Q2 FY25 Business Segment EBITDA $ Million 484
Slide 12: Economy & Industry Updates
Q2 FY25 EARNINGS ECONOMY & Industry Updates 12
Slide 13: Global Economy
Global Economy Economy & Industry Updates Global GDP GDP Growth (% YoY) Global GDP growth to remain steady in 2024 and 2025 at 3.2% from 3.3% in 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 3.3 3.2 3.2 (IMF, Oct 2024) CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 C
Slide 14: Indian Economy
Indian Economy Economy & Industry Updates Domestic GDP GDP Growth (% YoY) 10.3 8.5 8.3 8.3 8.7 8.2 8 7.4 7 7 7.2 Sustained growth 6.6 6.4 momentum, FY25 5.5 growth projected at 3.9 4.2 7.2%. (RBI) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25F -6.6 Outlook Risk
Slide 15: Global Aluminium Demand & Supply Balance
Global Aluminium Demand Economy & Industry Updates & Supply Balance Global Aluminium Industry ( In Million Tons) Production Consumption Balance 60.0 3% 60.0 3% 54.3 53.8 52.6 52.2 50.0 50.0 40.0 40.0 30.0 30.0 33.2 0.5 32.1 31.7 30.9 2% 2% 0.3 18.1 18.5 18.0 18.4 0.1 0 20.0 21.7 22.2 20.0 1.6 20.6 2
Slide 16: Industry Demand for Domestic Aluminium
Industry demand Economy & Industry Updates for Domestic Aluminium Domestic Aluminium Industry ( In Kilo Tons) 1433 1335 In Q2 FY25, 1266 1220 1319 the domestic 1173 1163 1130 1147 344 demand is 263 278 likely to reach 266 1,433 Kt (7% 218 196 266 213 211 growth YoY) primarily led 504 468 by strong 4
Slide 17: 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 and ~6% in CY25 (ex-China) Beverage Packaging Automobile Specialty Aerospace CAGR 4% - CY23-31 (Ex China) CAGR 6% (CY25-28) Growth Rate @Global GDP% C
Slide 18: Global Refined Copper Demand & Supply
Global Refined Copper Demand & Supply Economy & Industry Updates ( In Million Tons) Global Copper Industry Production Consumption Balance 2% 25.0 3% 20.0 19.5 19.1 19.8 20.0 19.3 15.0 15.0 10.8 11.1 10.7 10.8 0.3 0.2 10.0 5% 9.0 2.4 2.5 8.6 3% 8.4 -0.1 10.0 8.3 0 6.5 6.8 6.5 6.7 0.9 0.9 5.0 -2.2 -2.
Slide 19: Domestic Refined Copper Demand
Domestic Refined Copper Demand Economy & Industry Updates (In Kilo Tons) Domestic Copper Industry 225 218 In Q2 FY25, 196 201 198 201 market demand 190 194 187 increased by 67 ~9% YoY at 56 54 82 218 kt vs 201 45 49 54 57 64 KT in Q2 FY24 while share of domestic suppliers decreased to 63% from 73% 1
Slide 20: Consolidated Financial Performance
Q2 FY25 EARNINGS Consolidated Financial Performance 20
Slide 21: Consolidated Key Metrics
Consolidated Key Metrics Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 58,203 1,15,216 17,092 57,013 9,100 54,169 1,07,160 7,992 12,205 6,096 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 PBT after Exceptional Items (₹ Crore) Profit after Tax
Slide 22: Debt & Leverage: Net Debt to EBITDA
Debt & Leverage Consolidated Financial Performance Consolidated Debt (₹ Crore) Particulars (Consolidated) 30-Sep-23 31-Dec-23 31-Mar-24 30-Jun-24 30-Sep-24 Gross Debt 56,578 53,402 54,501 54,019 59,121 Treasury Balance 18,965 18,566 22,965 18,489 23,088 Net Debt 37,613 34,835 31,536 35,530 36,033 TT
Slide 23: Novelis Performance
Q2 FY25 EARNINGS Novelis Performance 23
Slide 24: Operational Performance
Operational Performance Novelis Performance Expansion projects on track* Shipments at 945Kt ,up Sierre Plant was Guthrie, U.S. automotive 1% YoY largely driven by safely restarted in recycling center, is record beverage September; ramp-up currently in the initial packaging shipments in will continue
Slide 25: Financial Performance
Financial Performance Novelis Performance Adjusted EBITDA ($ Million) Adjusted EBITDA per tonne ($/tonne) In Q2 FY25, down 5% YoY Q2 FY25, down 6% YoY 525 519 500 962 499 507 484 487* 905 502* 489 462 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 *Q2FY25 Adjusted EB
Slide 26: Aluminium Upstream Performance
Q2 FY25 EARNINGS Aluminium Upstream Performance 26
Slide 27: Aluminium: Upstream
Aluminium: Upstream Aluminium : Upstream Performance Operational and Financial Performance Shipments (KT) Revenue (₹ Crore) In Q2 FY25 down 2% YoY In Q2 FY25 up 16% YoY due higher average aluminium prices 334 329 328 675 657 9,125 17,964 8,839 15,942 7,878 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Q2
Slide 28: Aluminium Downstream Performance
Q2 FY25 EARNINGS Aluminium Downstream Performance 28
Slide 29: Aluminium: Downstream
Aluminium: Downstream # Aluminium : Downstream Performance # includes Flat Rolled Products, Foils & Extrusions Operational and Financial Performance Shipments (KT) Revenue (₹ Crore) In Q2 FY25, up by 20% YoY on account of higher volumes In Q2 FY25, up 10% YoY on account of market recovery 199 103 3,
Slide 30: Copper Performance
Q2 FY25 EARNINGS Copper Performance 30
Slide 31: Copper Performance
Copper Performance Copper Business Operational and Financial Performance Shipments: Metal (KT) Shipments: CC Rods (KT) In Q2 FY25 metal shipments was down by 13% YoY in Q2 FY25, down 10% YoY 134 252 100 100 236 198 190 119 90 117 Q2 FY24 Q1 FY25 Q2 FY25 H1FY24 H1FY25 Q2 FY24 Q1 FY25 Q2 FY25 H1FY24 H
Slide 32: Key Takeaways
Q2 FY25 EARNINGS Key Takeaways 32
Slide 33: Way Forward: Growth Story
Way Forward Growth Story Aluminium Copper ➢ Aditya FRP project is expected to commission in FY26, ➢ 280-300 Kt smelting capacity expansion to take total increasing total downstream capacity to 600 Kt. upstream capacity to ~800Kt, providing full integration Additionally the development of other high
Slide 34: 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 35: Consolidated: Key Financials
Consolidated : Key Financials Financials Consolidated Change QoQ Change Particulars (₹ Crore) Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 YoY % Change % YoY % Revenue from Operations 54,169 57,013 58,203 7% 2% 1,07,160 1,15,216 8% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Noveli
Slide 36: Hindalco (India) Business: Key Financials
Hindalco (India) Business : Key Financials Financials Hindalco (India) Business YOY QoQ Particulars (₹ Crore) Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Change % Change % Change% Revenue from Operations 21,103 22,750 23,135 10% 2% 41,333 45,885 11% EBITDA Aluminium - Upstream 2,074 3,493 3,709 79% 6% 4
Slide 37: 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) Q2 FY24 Q1 FY25 Q2 FY25 H1FY24 H1FY25 EBITDA - Upstream 2,074 3,493 3,709 4,009 7,202 EBITDA - Downstream 156 110 154 291 264 Intersegment Profit /(Loss)
Slide 38: Production Trends
Operational Performance Production Trends Hindalco (India) Business Aluminium Upstream (KT)* Aluminium Downstream# (KT)* In Q2 FY25, down 2% YoY In Q2 FY24, up 10% YoY 334 330 329 665 659 104 101 205 94 179 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Copper Cathod
Slide 39: Production – Alumina
Production – Alumina Operational Performance Hindalco (India) Business Alumina* (KT) 963 964 882 1,927 1,738 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 • Total Alumina production was up 9% YoY • Of this production at Utkal Alumina refinery was at 653 KT in Q2 FY25, up 13% YoY *Hydrate as Alumina 39
Slide 40: Q2 FY25: Earnings Concall
Q2 FY25 : Earnings Concall Earnings Conference Call is scheduled at 4:00 PM (IST) on November 12, 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 Num