Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY2019 Earnings Presentation
35 slides from Hindalco Industries's earnings presentation, May 16, 2019
Slide 1: Exchange cover letter for Q4 FY19 investor presentation
ADITYA BIRLA AM/STOX-GN/59 16 May, 2019 BSE_Limited PhirozeJeejeebhoy Towers, 25t Floor Dalal Street, MUMBAI 400 001 (Stock Code -500440). The National Stock Exchange of India Ltd Exchange Plaza Bandra-Kurla Complex Bandra East Mumbai- 400051 Banquelnternationale A Luxembourg SocieteAnonyme 69, Rout
Slide 2: Hindalco Industries Limited Q4 & FY19 Earnings Presentation
Hindalco Industries Limited Q4 & FY19 Earnings Presentation 16th May, 2019
Slide 3: 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 4: Table of Content
Table of Content Key Highlights – FY19 04 • Novelis Inc. Economy & Industry Updates – Global & Domestic 07 Result Highlights : Operational & Financial Performance – Q4 & FY19 12 • Aluminium Appendix 29 (India) • Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 3
Slide 5: Key Highlights – FY19
Key Highlights – FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 4
Slide 6: Key Highlights – FY19
Key Highlights – FY19 Highest ever Consolidated PAT at Rs. 5,495 crore, up 22% (Rs. 4,518* crore FY18) Highest ever Consolidated PBT (Before Exceptional Items) at Rs. 8,083 crore ( up 24% vs FY18) Hindalco Highest Ever Consolidated EBITDA at Rs. 16,627 crore (up 11% vs FY18) (Consolidated) H
Slide 7: Key Highlights – FY19 ..Contd.
Key Highlights – FY19 ..Contd. Highest ever EBITDA at Rs. 5,202 crore (Rs. 4,790 crore in FY18), up 9% on account of supporting macros and stable operations Aluminium EBITDA margin at 22% in FY19 (Hindalco Record Alumina and Aluminium Metal production Plus Utkal Aluminium VAP (excluding wire
Slide 8: Economy & Industry : Global & Domestic
Economy & Industry : Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7
Slide 9: Economy Updates
Economy Updates Concern Over Global Growth (% y-o-y) Indian Economic Growth Also under Pressure (% y-o-y) 8.0 8.2 3.8 7.4 7.2 7.0 6.4 3.6 3.6 3.4 3.4 3.3 CY14 CY15 CY16 CY17 CY18 E CY19 F FY14 FY15 FY16 FY17 FY18 FY19 AE Trade war between the US -China & US- Europe Monsoon dependency Growth co
Slide 10: Aluminium Industry
Aluminium Industry 2,378 Converging LME and SHFE Gap (USD/t) Gap= Net SHFE -(LME+MJP-$10) Robust growth in domestic in FY19 2,179 428 3,974 2,064 3,621 1,951 1,934 1,943 1,950 1957 2320 85 1,856 128 208 22 1,865 1,820 1,817 1,834 967 999 1,016 1,726 501 605 552 1664 1654 1,731 LME SHFE 466 393 463 0
Slide 11: FRP Industry
FRP Industry In CY19, the Global FRP demand continued to grow at a steady pace of 4-5% & 3-4% ex. China Global Can Stock market has started to show growth, majorly benefitting from the emerging markets like Asia and South America In CY19, Demand from continuous shift from glass to the Cans, ne
Slide 12: Copper Industry
Copper Industry LME Price of Copper (USD/t) Domestic Demand Grew by 10% (KT) 6,961 729 6,872 663 Domestic Imports 290 242 6,172 6,215 6,105 187 189 194 421 439 66 76 73 121 113 121 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Intensification of trade war and uncertain
Slide 13: Business Performance Highlights : Q4 & FY19
Business Performance Highlights : Q4 & FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 12
Slide 14: Financial Trend - Consolidated
Financial Trend - Consolidated Revenue (Rs. Crore) EBITDA (Rs. Crore) 1,30,542 16,627 1,15,820 15,025 1,02,631 13,559 FY17 FY18 FY19 FY17 FY18 FY19 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore) 8,083 5,495 6,508 4,518* 3,323 1,900 FY17 FY18 FY19 FY17 FY18 FY19 * Adjusted fo
Slide 15: Novelis Inc.
Novelis Inc. Hindalco Industries Limited EXCELLENCE BY DESIGN 14
Slide 16: Operational Performance - Novelis Inc.
Operational Performance - Novelis Inc. Overall Shipments (KT) Strong operating performance and favorable market conditions driving financial growth: 3,188 3,274 Solid Operational performance with Improved production recovery rates leading to incremental capacity Cost Efficiencies 805 800 870
Slide 17: Financial Performance - Novelis Inc.
Financial Performance - Novelis Inc. Revenue (USD Billion) Adjusted EBITDA (USD Million) Adjusted EBITDA (USD/tonne) 12.3 1,368 410 418 11.5 396 403 1,215 381 319 322 357 3.1 3.0 3.1 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Revenues at U
Slide 18: Aluminium Business (Hindalco Aluminium plus Utkal)
Aluminium Business (Hindalco Aluminium plus Utkal) Hindalco Industries Limited EXCELLENCE BY DESIGN 17
Slide 19: Production – Alumina, Aluminium Metal & VAP
Production – Alumina, Aluminium Metal & VAP Alumina* (Inc. Utkal Alumina) KT Aluminium Metal (KT) Aluminium VAP# (KT) 307 321 1,291 1,295 2,881 2,893 710 749 749 320 324 321 80 82 82 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 • Highest Alumi
Slide 20: Sales Volume – Aluminium Metal & VAP
Sales Volume – Aluminium Metal & VAP Aluminium Metal Sales in all forms (KT) Aluminium VAP# (KT) 1,281 1,274 296 301 325 323 325 83 76 83 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 • Aluminium Metal Sales maintained • Aluminium VAP in FY19 was 24% of total metal sales (Vs 23
Slide 21: Financial Performance - Hindalco Aluminium plus Utkal Alumina
Financial Performance - Hindalco Aluminium plus Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 23,775 21,090 5,202 4,790 5,513 6,018 5,953 1,265 1,286 1,043 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 • FY19 Aluminium revenue up by 13% YoY • FY19 EBITDA up 9% YoY on acc
Slide 22: Copper Business
Copper Business Hindalco Industries Limited EXCELLENCE BY DESIGN 21
Slide 23: Production – Copper & VAP
Production – Copper & VAP Cathode (KT) CC Rod (KT) DAP (KT) 245 303 410 347 166 205 105 105 66 62 76 69 89 44 30 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 • Cathode production impacted due to • CCR#3 ramping up as per schedule • DAP Product
Slide 24: Sales Volume – Copper & VAP
Sales Volume – Copper & VAP Copper Metal Sales in All Forms (KT) CC Rods (KT) 407 359 243 164 108 99 100 57 70 46 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 • Copper Sales in FY19 were down due to lower • CC Rods sales volumes were higher by 48% in production impacted by pla
Slide 25: Copper Business – Financial Performance
Copper Business – Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) 22,382 22,155 1,539 1,469 431 6,176 5,931 6,503 329 315 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 • Revenues were marginally lower in FY19 on • EBITDA was maintained in FY19 despite account of lo
Slide 26: Hindalco : Standalone plus Utkal Alumina
Hindalco : Standalone plus Utkal Alumina Hindalco Industries Limited EXCELLENCE BY DESIGN 25
Slide 27: Financial Performance - Hindalco Standalone plus Utkal Alumina
Financial Performance - Hindalco Standalone plus Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 45,908 7,532 43,462 7,154 11,687 11,944 12,455 1,926 1,807 1,733 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs.
Slide 28: In Summary
In Summary Sustainable Business Performance Strengthened Balance Sheet Excellent consolidated performance, • Consolidated Net Debt to EBITDA at despite headwinds & uncertainties 2.48x at end of March 2019. Best ever Financial & Operational • Deleveraging continues at Hindalco – performance by No
Slide 29: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 30: Appendix
Appendix Hindalco Industries Limited EXCELLENCE BY DESIGN 29
Slide 31: Financial Key Figures – Hindalco Consolidated
Financial Key Figures – Hindalco Consolidated (Rs. Crore) Particulars FY18 FY19 Change % Revenue from Operations 1,15,820 1,30,542 Business EBITDA Aluminium 4,691 5,107 9% Copper 1,594 1,516 -5% Novelis 7,903 9,194 16% Other Income 837 810 -3% Total EBITDA 15,025 16,627 11% Finance Costs 3,911 3,778
Slide 32: Financial Key Figures – Hindalco Standalone plus Utkal Alumina
Financial Key Figures – Hindalco Standalone plus Utkal Alumina (Rs. Crore) YOY Particulars Q4 FY18 Q3 FY19 Q4 FY19 YOY Change % FY18 FY19 Change % Revenue from Operations 11,687 11,944 12,455 7% 43,462 45,908 6% Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium (includes Utkal) 1,265
Slide 33: Financial Key Figures – Hindalco Standalone
Financial Key Figures – Hindalco Standalone (Rs. Crore) YOY YOY Particulars Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 Change % Change % Revenue from Operations 11,687 11,944 12,373 6% 43,446 45,749 5% Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium 920 515 615 -33% 3,708 2,885 -22% Copper 3
Slide 34: Awards & Recognitions
Awards & Recognitions ‘Leadership Award in Mega Large Business – Metals Sector’ in the Frost & Sullivan and TERI Sustainability Awards 4.0 - 2018 "Breaking New Grounds" Award at the Global Diversity Equity Inclusion Summit - Business World along with UNDP and Ask Insights FICCI CSR Award 2018
Slide 35: 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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