Hindalco Industries Limited · NSE:HINDALCO

Hindalco Industries — Q2 FY20 Earnings Presentation

30 slides from Hindalco Industries's earnings presentation, Nov 11, 2019

  1. Slide 1: Hindalco Industries Limited Q2 FY20 Earnings Presentation

    Hindalco Industries Limited Q2 FY20 Earnings Presentation 11th November, 2019

  2. 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

  3. Slide 3: Table of Content

    Table of Content Key Highlights – Q2 FY20 04 • Novelis Economy & Industry Updates – Global & Domestic 07 Business Performance Highlights : Operational & Financial – Q2 FY20 12 • Aluminium Annexures 27 (India) • Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 3

  4. Slide 4: Key Highlights – Q2 FY20

    Key Highlights – Q2 FY20 Hindalco Industries Limited EXCELLENCE BY DESIGN 4

  5. Slide 5: Key Highlights: Q2 FY20 vs. Q2 FY19

    Key Highlights : Q2 FY20 vs. Q2 FY19  Record Adjusted EBITDA at US$ 374 million, up 5% YoY  Adjusted EBITDA per ton at US $448, up 2% YoY Novelis*  Record Net Income (excluding special items#) at US$ 160 million (vs US$ 122 million in Q2 FY19) up 31% YoY  Total shipments stood at 835 Kt, up 3% Y

  6. Slide 6: Key Highlights: Q2 FY20 vs. Q2 FY19 ..Contd.

    Key Highlights : Q2 FY20 vs. Q2 FY19 ..Contd.  Domestic Copper market has grown by 10% YoY and 12% on H1 YoY basis, due to the base effect  CC Rod production at 65 Kt, up 24% (vs. 53 Kt in Q2 FY19) Copper  Record production in CCR-3 at 44 kt in Q2 FY20  VAP Sales (CC Rods) were up by 14% at 63kt

  7. Slide 7: Economy & Industry: Global & Domestic

    Economy & Industry : Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7

  8. Slide 8: Economy Updates

    Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.4 9.1 9.4 8.7 8.9 8.0 8.1 4.3 3.8 7.3 3.6 3.6 7.0 3.5 3.5 3.5 3.4 6.6 3.0 3.0 5.8 5.0 5.3 4.3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -0.1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 CY08 CY09 CY10

  9. Slide 9: Aluminium Industry

    Aluminium Industry Global Demand & Supply Balance (Mt) Global Price of Aluminium (Cash -$/T) Domestic Demand (Kt) 2,057 47.8 49.2 49.1 1,971 47.7 1,859 1,961 1,963 1,793 1,762 16.2 16.6 16.0 17.2 16.1 16.6 1,029 996 967 1,163 1,140 607 583 557 422 414 798 823 410 -0.4 -1.3 -0.5 -1.4 -1.4 Q3CY18 Q4CY

  10. Slide 10: FRP Industry

    FRP Industry  Global FRP demand continued to grow at a steady pace of ~3% in CY19  In CY19, global demand for beverage can stock is growing strongly due to packaging material shift to aluminium from other substrates for the products like energy drinks, sparkling water & crafted beer. This has resu

  11. Slide 11: Copper Industry

    Copper Industry Global Demand & Supply Balance (in Mt) Domestic Demand (Kt) 386 346 17.7 17.5 17.6 17.6 195 205 205 191 181 173 6.0 5.9 6.1 5.9 5.9 5.9 141 103 106 99 92 89 70 Q3 CY18 Q2 CY19 Q3 CY19 YTD CY18 YTD CY19 Consumption Production Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20  Uncertain global

  12. Slide 12: Business Performance Highlights: Q2 FY20

    Business Performance Highlights : Q2 FY20 Hindalco Industries Limited EXCELLENCE BY DESIGN 12

  13. Slide 13: Novelis

    Novelis Hindalco Industries Limited EXCELLENCE BY DESIGN 13

  14. Slide 14: Operational Performance - Novelis

    Operational Performance - Novelis Overall Shipments (KT)  Excellent operational performance resulting in :  Improving recovery & quality  Unlocking capacity 1,604 1,665  Increasing customer satisfaction  Overall shipments grew 3% YoY, broadly favorable market conditions and strong demand : 807

  15. Slide 15: Financial Performance - Novelis

    Financial Performance - Novelis Revenue (USD Billion) Adjusted EBITDA (USD Million) Adjusted EBITDA (USD/tonne) 6.2 746 440 448 448 430 448 5.8 689 355 372 374 3.1 2.9 2.9 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20  Revenu

  16. Slide 16: Aluminium Business (Hindalco Aluminium including Utkal)

    Aluminium Business (Hindalco Aluminium including Utkal) Hindalco Industries Limited EXCELLENCE BY DESIGN 16

  17. Slide 17: Production – Alumina, Aluminium Metal & VAP

    Production – Alumina, Aluminium Metal & VAP Alumina* (Inc. Utkal Alumina) KT Aluminium Metal (KT) Aluminium VAP# (KT) 649 657 157 155 1,396 1,353 701 686 326 326 330 79 79 76 667 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 

  18. Slide 18: Sales Volume – Aluminium Metal & VAP

    Sales Volume – Aluminium Metal & VAP Aluminium Metal Sales in all forms (KT) Aluminium VAP# (KT) 626 648 155 142 326 320 328 74 77 78 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20  Aluminium VAP sales grew 5% YoY in Q2 FY20  Aluminium metal sales higher by 1% YoY

  19. Slide 19: Financial Performance - Hindalco Aluminium including Utkal Alumina

    Financial Performance - Hindalco Aluminium including Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 11,803 2,900 10,998 1,738 6,135 5,472 5,526 1,368 889 849 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20  Aluminium revenues were down YoY in Q2  EBITDA was do

  20. Slide 20: Copper Business

    Copper Business Hindalco Industries Limited EXCELLENCE BY DESIGN 20

  21. Slide 21: Production – Copper & VAP

    Production – Copper & VAP Cathode (KT) CC Rod (KT) DAP (KT) 131 117 158 153 160 66 65 88 86 76 84 53 72 50 36 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20  Cathode production grew 17% YoY in Q2  CC Rod production grew 24% in Q2  DAP prod

  22. Slide 22: Sales Volume – Copper & VAP

    Sales Volume – Copper & VAP Copper Metal Sales in All Forms (KT) CC Rods (KT) 125 116 160 164 63 63 55 79 82 82 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20  Copper metal sales grew 5% and 3% YoY in Q2  Copper Continuous Cast Rods sales volumes were higher and H1 FY20 resp

  23. Slide 23: Copper Business – Financial Performance

    Copper Business – Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) 754 9,742 9,042 530 408 4,730 4,593 4,449 267 263 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20  Revenues were marginally lower YoY on  EBITDA was down 36% YoY in Q2 FY20 due to account of lower

  24. Slide 24: Financial Trend - Consolidated

    Financial Trend - Consolidated Revenue (Rs. Crore) EBITDA (Rs. Crore) 63,584 8,609 59,629 7,687 32,507 29,972 29,657 4,276 3,769 3,918 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore) 4,427 2,923 3

  25. Slide 25: To Summarise

    To Summarise Sustainable Growth Outlook Key Risks Performance Opportunities • Sustained consolidated • Novelis’ organic expansion • Global Inventories in • Weakening of global demand, performance, despite global projects will enhance product Aluminium is gradually led by China headwinds & uncertaint

  26. Slide 26: Thank You

    ADITYA BIRLA HINDALCO Thank You

  27. Slide 27: Annexure

    Annexure Hindalco Industries Limited EXCELLENCE BY DESIGN 27

  28. Slide 28: Financials – Hindalco Consolidated

    Financials – Hindalco Consolidated (Rs. Crore) YOY Change Particulars Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Change % YoY % Revenue from Operations 32,507 29,972 29,657 -9% 63,584 59,629 -6% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 2,485 2,587 2,629 6% 4,724 5,216

  29. Slide 29: Financials – Hindalco Standalone including Utkal Alumina

    Financials – Hindalco Standalone including Utkal Alumina (Rs. Crore) YOY YOY Particulars Q2 FY19 Q1 FY20 Q2 FY20 H1 FY19 H1 FY20 Change Change % % Revenue from Operations 10,843 10,055 9,966 -8% 21,509 20,020 -7% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Aluminium (including

  30. Slide 30: For Further Queries Please Contact

    For Futher 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.h

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