Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY2023 Earnings Presentation
39 slides from Hindalco Industries's earnings presentation, May 24, 2023
Slide 1: Hindalco Industries Ltd Q4-FY23 Earnings Presentation
Hindalco Industries Ltd Q4-FY23 Earnings Presentation 24th May 2023
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: 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 : • Awards & R
Slide 4: Sustainability Updates
Vo er Sustainability st Updates
Slide 5: Hindalco India: Sustainability @Core
Hindalco India: Sustainability @Core Greenbelt and Biodiversity Workforce Health & Safety • Completed the CII’s Biodiversity index • Safety 360 Initiative : Off the Job Safety and Carbon Sequestration field study implemented across Hindalco with a total for six sites in FY23. of 4,025 employee's fam
Slide 6: Hindalco India: ESG Key Metrics
Hindalco India : ESG Key Metrices % Recycling of Bauxite Residue Specific freshwater Consumption Aluminium Specific GHG Emissions (except from Utkal Refinery) (m3/T metal) (t CO2e/t) 124 54.2 52.8 50.4 51.5 100 102.3 66.5 28.3 19.78 19.74 23.6 19.66 18 17.2 19.21 FY20 FY21 FY22 FY23 FY20 FY21 FY22 F
Slide 7: Financial Performance at a Glance
Financial Performance at a glance
Slide 8: Quarterly Financial Performance at a Glance
Quarterly Financial Performance at a Glance Particulars UOM Q4-FY22 Q4-FY23 Change YoY Revenue ₹ in Cr 55,764 55,857 - EBITDA ₹ in Cr 7,597 5,818 -23% Consolidated PAT ₹ in Cr 3,851 2,411 -37% Shipments Kt 987 936 -5% Revenue $ Billion 4.8 4.4 -8% EBITDA $ Million 431 403 -6% Novelis EBITDA/t $/ton
Slide 9: Yearly Financial Performance at a Glance
Yearly Financial Performance at a Glance Particulars UOM FY 2021-22 FY 2022-23 Change YoY Revenue ₹ in Cr 1,95,059 2,23,202 14% EBITDA ₹ in Cr 30,056 24,131 -20% Consolidated PAT ₹ in Cr 13,730 10,097 -26% Shipments Kt 3,858 3,790 -2% Revenue $ Billion 17.1 18.5 8% EBITDA $ Million 2,045 1,811 -11%
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) 5.6 6.0 5.4 4.3 9.8 10.3 3.5 3.5 3.6 3.5 3.4 3.9 3.6 3.4 8.5 7.4 8.0 8.3 8.3 7.0 8.7 3.0 2.9 2.8 6.6 7 6.5 5.5 6.4 3.9 4.2 -0.1 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22F CY23F Source: IMF Source
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance ( in Million Tons) Global Price of Aluminium (Cash $/Ton) Production Consumption Metal Balance 3,280 2% 2% 0% (6%) 2,875 67.4 69.1 16.7 17.1 69.0 69.2 17.0 16.0 (1.6) (0.1) (0.2) 1.1 2,762 2,648 2,400 2,354 2,324 2,395 38.5 40.3 40.1 40.6 2,09
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 908 939 1030 1038 1000 1178 1160 1173 224 209 217 161 221 164 188 162 453 461 455 450 394 418 381 380 419 422 418 502 490 501 340 396 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23E Domestic Supplies Scrap Imports Imports Ex Scrap I
Slide 14: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry Global FRP Demand is estimated to grow by ~3% in CY23 (vs CY22 growth of 3%). Beverage Packaging Automotive Speciality Aerospace Customer inventory reduction Easing supply chain End markets historically more Post pandemic travel expected to con
Slide 15: Global Copper Industry
Global Copper Industry Production Consumption Metal Balance 1.9% 1.6% 24.7 24.5 24.9 24.2 11.2 11.3 13.9 14.1 -0.3 -0.2 4.3% 1.8% 2.7 2.8 0.5 0.6 0.6 0.7 6.0 6.3 13.3 13.6 5.6 5.7 -0.1 -0.1 10.3 10.6 3.6 -3.0 -3.0 3.5 2.9 2.9 2.6 2.7 2.7 2.8 CY21 CY22 Q1 CY22 Q1 CY23 CY21 CY22 Q1 CY22 Q1 CY23 CY21 C
Slide 16: Domestic Refined Copper Industry
Domestic Refined Copper Industry Domestic Demand (Kt) 192 199 188 186 172 173 160 162 45 45 54 33 33 99 118 43 38 44 139 140 143 141 145 117 124 93 74 Q3 FY20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Domestic Supply Import In Q4-FY23, market demand increased by ~16% YoY at 1
Slide 17: Consolidated Financial Performance
Consolidated Financial Performance
Slide 18: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 2,23,202 30,056 1,95,059 24,131 55,764 53,151 55,857 7,597 5,818 3,930 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 PBT after Exceptional Items (₹ Crore) PAT from Continuing Operations (₹ Crore) 14,201 19,57
Slide 19: Consolidated Debt and Leverage
Consolidated Debt and leverage (₹ Crores) Particulars As on As on As on As on As on (Consolidated) 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 Gross Debt 63,237 64,023 61,536 59,720 58,337 Cash & Cash Equivalents 24,141 21,830 19,473 18,004 24,378 Net Debt 39,096 42,193 42,063 41,716 33,959 TT
Slide 20: Novelis
Novelis
Slide 21: Novelis: An Overview
Novelis : An Overview Overall Shipments (Kt) Improvement in product pricing and favourable product mix 3,858 3,790 Higher shipments in Q4-FY23 as compared to Q3-FY23 YoY performance is impacted by mostly transitory factors like lower volumes on supply chain destocking, lower demand for special
Slide 22: Novelis Financial Performance
Novelis Financial Performance Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 18.5 530 17.1 2,045 478 1,811 437 431 376 4.8 4.2 4.4 431 341 403 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Net sales in Q4-FY23 stands at $4.4
Slide 23: Aluminium Upstream
ADITYA BIRLA Aluminium Upstream
Slide 24: Aluminium Upstream Business
Aluminium Upstream Business Production (Kt) Shipments (Kt)* 1,296 1,319 In Q4-FY23 production and shipments 342 323 1,294 1,322 were 328 kt and 323 kt, which was higher by 1% and lower by 1% YoY 325 336 323 954 996 respectively 326 335 328 81 83 72 243 256 251 Revenues were down by 13% YoY due Q
Slide 25: Aluminium Downstream
ADITYA BIRLA ‘ Aluminium Downstream
Slide 26: Aluminium Downstream Business
Aluminium Downstream# Business Production (Kt) Shipments (Kt) In Q4-FY23 production was lower by 11% and sales were down by 3% YoY 349 339 348 354 • In Q4-FY23 Revenue was ₹2,738 crore, 92 85 93 91 90 lower by 17% YoY, on account of lower 81 aluminium prices and volumes Q4 FY22 Q3 FY23 Q4 FY23 FY2
Slide 27: Copper
Copper
Slide 28: Copper Metal & VAP: Production and Sales
Copper Metal & VAP : Production and Sales Production : Copper Cathode (Kt) Production : CC Rod (Kt) In Q4-FY23 Cathode production 407 347 359 was 106Kt, up 13% YoY, whereas 259 Copper Rods production was 91Kt, up 32% YoY 94 104 106 91 91 69 In Q4FY23, production at Birla Q4 FY22 Q3 FY23 Q4 FY23
Slide 29: Financial Performance: Copper Business
Financial Performance : Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 41,702 36,723 2,253 1,390 9,787 10,309 11,206 546 598 387 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Revenues were up by 14% YoY in Q4- EBITDA in Q4-FY23 up 55% YoY on the FY23, on account of high
Slide 30: Summary
Summary
Slide 31: Key Takeaways
Key Takeaways Resilient India Business Outperformance by Copper Novelis is recovering • India Business is almost Net • Copper Business delivered its • Improvement in product pricing Debt free, enabler for organic highest ever EBITDA, backed by and favourable product mix growth robust recovery of dem
Slide 32: 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 Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East), Mumbai 400 093 Telephone +91 22 6691 7000 Websi
Slide 33: Annexures
Annexures
Slide 34: Awards & Recognitions: FY 2022-23
Awards & Recognitions : FY 2022-23 Hindalco is among top 40 of India’s best workplaces in Health and Wellness 2022 by The Great Place to Work® Institute Hindalco is in the top 1% S&P Global ESG score in the aluminium industry in 2022 (a score of 83/100) Hindalco continues to be a part of S&P G
Slide 35: Consolidated: Key Financials
Consolidated : Key Financials Change QoQ Change Particulars (₹ Crore) Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 YoY % Change % YoY % Revenue from Operations 55,764 53,151 55,857 0% 5% 1,95,059 2,23,202 14% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,247 2,848 3,314 2% 16% 1
Slide 36: Hindalco (India) Business: Key Financials
Hindalco (India) Business : Key Financials YOY QoQ Particulars (₹ Crore) Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Change % Change % Change% Revenue from Operations 19,629 19,431 20,444 4% 5% 68,855 78,570 14% EBITDA Aluminium - Upstream 3,737 1,591 2,192 -41% 38% 12,478 8,402 -33% Aluminium - Downstream 14
Slide 37: Aluminium (India) Business: EBITDA and Sales Reconciliation
Aluminium (India) Business : EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars (in Rs Cr) Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY22 FY23 EBITDA - Upstream 3,737 3,272 1,347 1,591 2,192 12,478 8,402 EBITDA - Downstream 140 158 200 157 112 382 627 Intersegment Profit /(Loss) Eliminat
Slide 38: Production: Alumina (India)
Production : Alumina (India) Alumina* (KT) 3,525 3,235 866 885 861 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Total Alumina production was down 1% YoY Of this production at Utkal Alumina refinery at 558 Kt in Q4-FY23, flattish YoY *Hydrate as Alumina 38
Slide 39: Q4FY23: Earnings Concall
Q4FY23 : Earnings Concall Earnings Conference Call is scheduled at 4:00 PM (IST) on May 24, 2023. The dialin 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 US
Hindalco Industries — Q4 FY2023 Earnings Presentation on 6ix