Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY21 Earnings Presentation
37 slides from Hindalco Industries's earnings presentation, Feb 10, 2021
Slide 1: Hindalco Industries Limited Q3 FY21 Earnings Presentation
Hindalco Industries Limited Q3 FY21 Earnings Presentation 10th February, 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. Key Highlights – Q3 FY21 2. Economy & Industry Updates – Global & Domestic • Novelis 3. Business Performance : Operational & Financial – Q3 & 9M FY21 - Novelis - Aluminium (India) - Copper • Aluminium - Consolidated (India) 4. Sustainability Updates 5. Annexures : • Copper - Key
Slide 4: Business Performance Key Highlights - Q3 FY21
Business Performance Key Highlights - Q3 FY21 Hindalco Industries Limited EXCELLENCE BY DESIGN 4
Slide 5: Key Highlights: Q3 FY21
Key Highlights : Q3 FY21 Record quarterly shipments of 933 Kt (797Kt), up 17% YoY driven by strong demand across product end markets Record adjusted EBITDA at $501 million ($343 million), up 46% YoY, on the back of higher volumes and improved margins. Record adjusted EBITDA per ton at $537 ($4
Slide 6: Key Highlights: Q3 FY21 ...Contd.
Key Highlights : Q3 FY21 ...Contd. Cathode production was low at 51Kt (87Kt) in Q3 FY21, due to planned maintenance shutdown in one of the smelters CC Rods sales at 65 kt (58Kt), up 12% YoY; although total metal sales were lower at 73Kt (84Kt). Copper Highest ever fertilizer sales volume at 15
Slide 7: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7
Slide 8: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 10.3 11.0 5.6 5.4 5.5 9.8 8.5 4.3 6.6 7.4 8.0 8.3 8.3 7.0 6.4 3.5 3.5 3.6 3.5 3.4 3.9 3.6 5.5 3.0 2.9 3.9 4.2 -0.1 CY07 CY08 CY09 CY10 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY11 CY20E CY21E -7.7 -3.5 Global growth accelerating ba
Slide 9: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Mt) Global Price of Aluminium (Cash -$/T) Production Consumption Metal Balance 5% (4)% 1,912 2% 5% 1,859 1,793 1,762 63.2 64.7 15.9 16.7 64.4 62.1 15.8 16.6 (1.2) 2.6 0.0 0.1 1,752 1,690 1,704 35.2 36.6 36.0 37.5 1,497 3.5 28.0 28.1 8.8 9.6 2
Slide 10: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 996 957 861 888 574 747 974 335 347 408 310 346 262 248 207 193 166 272 187 122 414 403 116 358 376 363 379 186 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21E Domestic Sales Imports Ex Scrap Scrap Imports In Q3 FY21 the Domestic demand is
Slide 11: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry The global FRP Demand is estimated to grow by ~7% in CY21 (vs CY20 contraction of ~6%) on account demand recovery and base effect. Beverage Cans Automotive Aerospace CY21E Growth in Market Demand 3-6% CY21E Growth in Market Demand 25-30% CY21E Growth i
Slide 12: Copper Industry (Global)
Copper Industry (Global) Global Demand & Supply Balance (in Mt) (3)% 23.4 23.0 23.3 22.5 11.5 10.5 14.1 13.7 5.9 5.8 5.9 6.0 11.8 12.1 9.3 9.3 3.5 3.4 2.9 2.7 2.4 2.3 3.0 3.2 CY19 CY20 Q4 CY19 Q4 CY20 CY19 CY20 Q4 CY19 Q4 CY20 Production Consumption China World ex-China CY20 (vs CY19) Global coppe
Slide 13: Copper Industry (Domestic)
Copper Industry (Domestic) Domestic Demand (Kt) 195 190 192 172 150 166 89 92 99 56 37 58 91 40 106 98 116 113 108 93 51 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Domestic Supply Import In Q3FY21, overall domestic market reached to 85% of Q3FY20 level at 166Kt in line with the market
Slide 14: Business Performance: Q3 FY21
Business Performance : Q3 FY21 Hindalco Industries Limited EXCELLENCE BY DESIGN 14
Slide 15: Novelis
Novelis Hindalco Industries Limited EXCELLENCE BY DESIGN 15
Slide 16: Operational Performance – Novelis
Operational Performance – Novelis Achieved a number of record financial results driven by favorable markets, acquired business and operational excellence Overall Shipments (KT) Record shipments at 933 Kt in Q3FY21 up 17% YoY and 1% sequentially : Can shipments remained strong and resilient, up
Slide 17: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 8.6 537 8.5 1,209 493 1,089 442 460 430 455 501 3.0 3.2 343 2.7 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 Net sales in Q3 FY21 st
Slide 18: Aluminium (India)
Aluminium (India) Hindalco Industries Limited EXCELLENCE BY DESIGN 18
Slide 19: 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 was higher by 3% QoQ in Q3 FY21 240 987 913 Aluminum VAP production was higher 181 by 37% QoQ in Q3 FY21 in line with 330 80 84 307 315 62 pick in dema
Slide 20: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 3,245 16,505 14,526 2,707 1,323 1,045 1,066 5,483 4,796 5,294 Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 Aluminium revenues were up 11% QoQ, with EBITDA at ₹1,323 crore, up 24% QoQ i
Slide 21: Copper
Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 21
Slide 22: 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 at 51 Kt, lower 247 192 by 29% QoQ mainly due to planned 158 maintenance shutdown in one of 165 the smelters 87 73 60 65 67 51 CC Rods production was higher by 2% QoQ at 6
Slide 23: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 13,816 13,938 870 447 6,133 4,774 4,774 256 208 202 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 Revenues were up by 8% QoQ in Q3 FY21, on EBITDA maintained at ₹202 crore in Q3 FY21 account of hig
Slide 24: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited EXCELLENCE BY DESIGN 24
Slide 25: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) Business EBITDA (₹ Crore) 12,727 88,826 91,478 11,207 4,672 5,242 31,237 34,958 3,733 29,197 Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 PBT Before Exceptional Items (₹ Crore) Profit After Tax (₹ Crore) 5,517 5,
Slide 26: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on Particulars 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 Gross Debt 67,266 84,181 78,265 71,996 Cash & Cash Equivalents 27,883 21,879 20,265 18,194 Net Debt 39,384 62,302 58,001 53,802 Net Debt : EBITDA*(x) 3.83 3.52 3.09 2.61 * Based on TTM
Slide 27: Hindalco Sustainability Updates
Hindalco Sustainability Updates Hindalco Industries Limited EXCELLENCE BY DESIGN 27
Slide 28: Hindalco named as Aluminium Industry Leader by DJSI
Hindalco named as Aluminium Industry Leader by DJSI • Hindalco is World’s most sustainable aluminium company in the Dow Jones Sustainability Indices (DJSI) based on its S&P Global CSA score 2020 • Hindalco’s scores are in the 100th DJSI Score percentile in most aspects of all 3 75 dimensions of the
Slide 29: Zero Harm, Zero Waste to Landfill, Zero Discharge & Renewable Energy
Zero Harm, Zero Waste to Landfill, Zero Discharge & Renewable Energy Safety Program Update Environment Renewable Energy Zero liquid discharge at 11 sites out of 15. Target Additional 2.3 MW Solar was commissioned in of increasing 1 site per year. Separation of Process Alupuram, Kerala unit in Sep’
Slide 30: In Summary
In Summary Hindalco Industries Limited EXCELLENCE BY DESIGN 30
Slide 31: Summary
Summary Record Performance Strong Balance Sheet Integration & Synergy Record performance across segments Robust cash generation accelerating Integration of Aleris with accelerated driven by sharp recovery in demand, the pace of deleveraging and synergy realization and value capture improved macros a
Slide 32: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 33: Annexures
Annexures Hindalco Industries Limited EXCELLENCE BY DESIGN 33
Slide 34: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change (₹ Crore) Particulars Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 YoY % Change % YoY % Revenue from Operations 29,197 31,237 34,958 20% 12% 88,826 91,478 3% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 2,446 3,392 3,711 52% 9
Slide 35: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ YOY Particulars Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 Change % Change% Change % Revenue from Operations 10,254 9,565 11,425 11% 19% 30,310 28,454 -6% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Aluminium 1,045 1,06
Slide 36: Production – Alumina
Production – Alumina Alumina* (KT) 2,015 2,002 662 705 675 Q3 FY20 Q2 FY21 Q3 FY21 9M FY20 9M FY21 Alumina production was low on account of planned maintenance shutdown at Utkal during the quarter *Hydrate as Alumina Hindalco Industries Limited EXCELLENCE BY DESIGN 36
Slide 37: For Further Queries Please Contact: Subir Sen, Investor Relations
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.