Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY23 Earnings Presentation
38 slides from Hindalco Industries's earnings presentation, Feb 9, 2023
Slide 1: Hindalco Industries Limited Q3 FY23 Earnings Presentation
Hindalco Industries Limited Q3 FY23 Earnings Presentation 09th February, 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: Table of Content
Table of Content 1. Sustainability Updates – Q3 FY23 2. Key Highlights – Q3 FY23 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial - Novelis - Aluminium : Upstream Business - Aluminium : Downstream Business • Aluminium - Copper - Consolidat
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 Environment % Recycling of Bauxite Residue except from Utkal Refinery Zero waste to landfill by 2030 • 85.6% of total waste got recycled and reused (w/w of generation) in FY23.YTD 117 • 117% of Bauxite Residue from three out of four Alumin
Slide 6: Hindalco: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewables Aluminium Specific GHG Emissions (t CO2e/t) • FY25 Target : 300 MW (200 MW w/o Storage; 100 MW w/storage); 100 MW already installed till FY22 19.78 19.74 19.66 • Projects commissioned YTD FY23 - 9 MW • 33 TPH steam + 4 MW Power with Biomass boiler a
Slide 7: Business Performance Key Highlights - Q3 FY23
Business Performance Key Highlights - Q3 FY23 Hindalco Industries Limited 7
Slide 8: Key Highlights: Q3 FY23
Key Highlights : Q3 FY23 ▪ Performance impacted by rising input costs and unfavorable macros, partially offset by higher volumes in India operations ▪ Quarterly EBITDA at ₹3,930 crore (₹7,624 crore), down 48% YoY Consolidated ▪ Quarterly PAT from continuing operations at ₹1,362 crore (vs ₹3,660 cror
Slide 9: Key Highlights: Q3 FY23 ...Contd.
Key Highlights : Q3 FY23 ...Contd. ▪ EBITDA at ₹1,591 crore (vs ₹3,309 crore) down 52% YoY, impacted by higher input costs and unfavorable macros partially offset by higher volumes; EBITDA margins at 19.8% (vs 41.3%) Aluminium ▪ EBITDA per ton at $555 (vs $1,279/ton), down 57% YoY. Upstream ▪ Record
Slide 10: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 11: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.6 6.0 5.4 10.3 4.3 9.8 8.7 8.5 8.0 8.3 8.3 7.0 3.0 3.5 3.5 3.6 3.5 3.4 3.9 3.6 3.4 2.9 6.6 5.5 6.4 7.4 7 6.4 2.9 4.2 3.9 CY18 CY19 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY20 CY21 CY22F CY23F -0.1 Source: IMF Source
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 2% 3% 1% -1% 3267 67.4 68.9 16.8 17.3 69.0 69.3 17.5 17.3 (1.6) (0.4) (0.6) (0.1) 2882 2762 2648 0.0 2400 2354 2324 0.1 38.5 40.1 40.1 40.4 (0.1) (0.1)
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand of Aluminium (in Kt) 908 939 1030 1038 1000 1178 1160 224 209 161 221 164 188 162 453 461 450 394 418 381 380 419 422 418 502 490 340 396 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q3 FY23, t
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%). 1. Beverage Packaging 2. Automotive 3. Specialities 4. Aerospace • Customer inventory • Easing supply chain • End markets historically more • Post-pandemic travel reduction e
Slide 15: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 1.9% 1.6% 24.2 24.7 24.5 24.9 11.2 11.3 13.9 14.1 6.3% 5.2% 6.0 6.4 6.3 6.6 13.3 13.6 10.3 10.6 2.9 2.8 3.5 3.6 2.5 2.8 3.4 3.9 CY21 CY22 Q4 CY21 Q4 CY22 CY21 CY22 Q4 CY21 Q4 CY22 CY22 vs. CY21 China World
Slide 16: Domestic Copper Industry
Domestic Copper Industry Domestic Demand (kT) 192 188 186 160 162 172 173 45 45 33 33 99 43 38 118 44 139 140 143 141 117 124 93 74 Q3 FY20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Domestic Supply Import ▪ In Q3 FY23, market demand increased by ~15%, YoY at 186 kt vs 162 KT in Q3FY22
Slide 17: Business Performance: Q3 FY23
Business Performance : Q3 FY23 Hindalco Industries Limited 17
Slide 18: Novelis
Novelis Hindalco Industries Limited 18
Slide 19: Operational Performance – Novelis
Operational Performance – Novelis Overall Shipments (KT) ▪ Overall quarterly performance in Q3FY23 was impacted by lower volumes on supply chain de- stocking, lower specialties demand, challenging macro-economic environment, inflationary 2,871 2,854 pressures, higher energy costs, rising interest ra
Slide 20: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 14.1 1,614 562 12.3 544 1,408 514 493 376 4.3 4.8 4.2 506 506 341 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 ▪ Net sales in Q3FY23 s
Slide 21: Aluminium: Upstream Performance
Aluminium : Upstream Performance Hindalco Industries Limited 21
Slide 22: Aluminium Upstream Business
Aluminium Upstream Business Production (Kt) Shipments (Kt)* ▪ Record Production at 335 Kt in Q3FY23, 1,021 1,023 up 2%, YoY and Record Shipments at 349 968 993 Kt, up 1% YoY ▪ Revenues were flattish YoY 345 341 349 327 332 335 ▪ EBITDA at ₹1,591 crore, down 52% YoY in Q3FY23 on account of higher inp
Slide 23: Aluminium: Downstream Performance
Aluminium : Downstream Performance Hindalco Industries Limited 23
Slide 24: Aluminium Downstream Business
Aluminium Downstream# Business Production (Kt) Sales (Kt) ▪ In Q3 FY23 production was lower by 254 264 257 258 3% and Sales were up by 6% YoY ▪ Revenues were lower by 8% YoY, on 88 88 85 86 95 91 account of lower volumes ▪ EBITDA at ₹157 crore, up 24% YoY in Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Q
Slide 25: Copper
Copper Hindalco Industries Limited 25
Slide 26: Copper Metal & VAP - Production and Sales in Kt
Copper Metal & VAP - Production and Sales in Kt Production : Copper Cathode (Kt) Production : CC Rod (Kt) ▪ Quarterly Cathode Production was 302 256 104Kt whereas Copper Rods 265 190 Production was 91Kt in Q3FY23 up 2% and 19% respectively 102 105 104 86 91 77 Q3FY22 Q2FY23 Q3FY23 9M FY22 9M FY23 Q3
Slide 27: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 30,496 1,655 26,936 1,003 10,255 9,658 10,309 544 546 390 Q3FY22 Q2FY23 Q3FY23 9M FY22 9M FY23 Q3FY22 Q2FY23 Q3FY23 9M FY22 9M FY23 ▪ Revenues were up by 1% YoY in Q3 FY23, on ▪ EBITDA at ₹546 crore in Q3 FY23 compared to acc
Slide 28: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 28
Slide 29: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 1,67,345 22,459 1,39,295 18,313 50,272 56,176 53,151 7,624 5,743 3,930 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 PBT after Exceptional Items (₹ Crore) PAT from Continuing Operations (₹ Crore) 14,7
Slide 30: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 Gross Debt 65,817 63,237 64,023 61,536 59,720 Cash & Cash Equivalents 22,084 24,141 21,830 19,473 18,004 Net Debt 43,733 39,096 42,193 42,063 41,716 TTM Adjusted EBITDA
Slide 31: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 32: Annexures
Annexures Hindalco Industries Limited 32
Slide 33: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 YoY % Change % YoY % Revenue from Operations 50,272 56,176 53,151 6% -5% 1,39,295 1,67,345 20% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,792 4,047 2,848 -25
Slide 34: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials YOY QoQ Particulars (₹ Crore) Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Change % Change % Change% Revenue from Operations 18,486 18,963 19,432 5% 2% 49,227 58,127 18% EBITDA Aluminium - Upstream 3,290 1,347 1,591 -52% 18% 8,741 6,210 -29% Aluminium - Downstre
Slide 35: Aluminium (India) Business EBITDA and Sales Reconciliation
Aluminium (India) Business EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars (in Rs Cr) Q3FY22 Q2 FY23 Q3FY23 9MFY22 9MFY23 EBITDA - Upstream 3,290 1,347 1,591 8,741 6,210 EBITDA - Downstream 125 200 157 240 515 Intersegment Profit /(Loss) Elimination (Net) (111) 437 101 (246) 47
Slide 36: Production – Alumina
Production – Alumina Alumina* (KT) 2,664 2,369 858 900 885 Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 ▪ Total Alumina production was up 3% YoY ▪ Of this production at Utkal Alumina refinery at 592 Kt in Q3 FY23, up 5% YoY *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.
Slide 38: Q3FY23: Earnings Concall Details
Q3FY23 : Earnings Concall Details Earnings Conference Call is scheduled at 4:00 PM (IST) on Feb 9, 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 Toll-Free N