Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY21 Earnings Presentation
40 slides from Hindalco Industries's earnings presentation, May 21, 2021
Slide 1: Hindalco Industries Limited Q4 FY21 Earnings Presentation
Hindalco Industries Limited Q4 FY21 Earnings Presentation 21st May, 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. COVID-19 Response 2. Key Highlights – Q4 FY21 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial – Q4 & FY21 - Novelis - Aluminium (India) - Copper • Aluminium - Consolidated (India) 5. Sustainability Updates 6. Annexures
Slide 4: COVID-19 Response: Supporting Employees
COVID-19 Response : Supporting Employees Over 20,000 Vaccinations 24x7 Support Services Financial Assistance Special reimbursements for home- 24 X 7 Helpline for Medical 80% eligible employees* and care/hospitalization expenses of and family members vaccinated employees & families Mental health supp
Slide 5: COVID-19 Response: Supporting the Community
COVID-19 Response : Supporting the Community ▪ Plant hospitals and clinics have extended quarantine & Covid care facilities to the community ▪ Over 3,000 Covid patients treated at our hospitals & health 1,000 O2 Concentrators 1,500 O2 Cylinders centers in the 2nd wave Received from Novelis and ▪ Ded
Slide 6: Business Performance Key Highlights - Q4 FY21
Business Performance Key Highlights - Q4 FY21 Hindalco Industries Limited EXCELLENCE BY DESIGN 6
Slide 7: Key Highlights: Q4 FY21
Key Highlights : Q4 FY21 ▪ Record quarterly shipments of 983Kt (811Kt), up 21% YoY driven by strong demand across all business segments ▪ Record adjusted EBITDA at $505 million ($383 million), up 32% YoY on the back of higher volumes and improved margins ▪ Adjusted EBITDA per ton at $514 ($472/t) up
Slide 8: Key Highlights: Q4 FY21 ...Contd.
Key Highlights : Q4 FY21 ...Contd. ▪ Cathode production was at 97Kt (75Kt) up 28% YoY, on account of stable operations; CC Rods production was at 76Kt (71Kt) up 7% YoY Copper ▪ Metal sales volumes at 107Kt (86Kt) up 24% YoY; CC Rods sales at 73 kt, in-line with Q4 FY20 ▪ EBITDA at ₹269 crore (₹406 c
Slide 9: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 9
Slide 10: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 6.0 9.8 10.3 10.5 5.6 5.4 8.5 4.3 6.6 7.4 8.0 8.3 8.3 7.0 6.4 3.5 3.5 3.6 3.5 3.4 3.9 3.6 5.5 3.0 2.9 3.9 4.2 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E -0.1 CY07 CY09 CY10 CY11 CY12 CY13 CY14 CY15 C
Slide 11: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Mt) Global Price of Aluminium (Cash -$/T) Production Consumption Metal Balance 6% (3)% 16% 2,096 2% 1,916 63.2 64.8 15.8 16.8 64.6 62.8 13.9 16.2 (1.3) 2.0 2.0 0.6 1,859 1,793 1,762 1,752 35.3 36.7 36.2 37.8 1,690 1,704 1,497 1.7 27.9 28.1 28
Slide 12: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 996 957 861 888 574 747 1018 1077 195 240 248 207 193 166 122 442 415 335 347 346 310 116 262 272 414 403 358 376 363 382 422 186 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q4 FY
Slide 13: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ The global FRP Demand is estimated to grow by ~8% in CY21 (vs CY20 contraction of ~5%) 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 14: Copper Industry (Global)
Copper Industry (Global) Global Demand & Supply Balance (in Mt) Production (Mt) Consumption (Mt) 23.3 23.3 23.3 23.2 11.5 10.5 14.1 13.8 14% 5.7 6.0 4.9 5.5 11.8 12.7 9.3 9.5 3.5 3.4 2.8 2.9 2.3 2.5 2.0 2.7 CY19 CY20 Q1 CY 20 Q1 CY21 CY19 CY20 Q1 CY 20 Q1 CY21 CY20 (vs CY19) Production Consumption C
Slide 15: Copper Industry (Domestic)
Copper Industry (Domestic) Domestic Demand (Kt) 750 Domestic Supply Import 335 566 178 172 150 166 161 414 388 56 91 37 58 42 116 40 110 106 119 51 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY20 FY21 ▪ On Full Year basis, Domestic Market Demand reduced by 24% to 566 KT in FY21 from 750 KT FY20 ▪ Market Sha
Slide 16: Business Performance: Q4 FY21
Business Performance : Q4 FY21 Hindalco Industries Limited EXCELLENCE BY DESIGN 16
Slide 17: Novelis
Novelis Hindalco Industries Limited EXCELLENCE BY DESIGN 17
Slide 18: Operational Performance – Novelis
Operational Performance – Novelis Overall Shipments (KT) ▪ Record quarterly financial performance backed by favorable markets, acquired business and operational excellence in Q4 FY21 3,613 3,273 ▪ Record shipments at 983 Kt in Q4FY21 up 21% YoY ▪ Expansion project updates: ▪ Automotive finishing pla
Slide 19: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 12.3 1,714 537 514 11.2 1,472 474 472 450 3.6 501 505 2.7 3.2 383 Q4FY20 Q3FY21 Q4FY21 FY20 FY21 Q4FY20 Q3FY21 Q4FY21 FY20 FY21 Q4FY20 Q3FY21 Q4FY21 FY20 FY21 ▪ Net sales in Q4 FY21 stands at $3
Slide 20: Aluminium (India)
Aluminium (India) Hindalco Industries Limited EXCELLENCE BY DESIGN 20
Slide 21: 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 in Q4 319 FY21 was in-line with corresponding 1,314 270 1,229 quarter of FY20 ▪ Aluminum VAP production was higher 79 84 89 by 13% YoY in Q4 FY21 327
Slide 22: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 21,804 4,855 20,495 3,749 1,323 1,610 5,299 5,294 5,969 1,043 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 ▪ Aluminium revenues were up 13% YoY, with ▪ Record EBITDA at ₹1,610 crore, up 54% YoY in Q4
Slide 23: Copper
Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 23
Slide 24: 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 97 Kt in 263 Q4FY21, up 29% YoY on account of 321 235 stable operations. 262 ▪ CC Rods production was higher by 97 71 67 76 75 7% YoY at 76Kt in Q4 FY21. 51 Q4FY20 Q3FY21
Slide 25: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 22,446 1,276 18,533 716 8,508 406 6,133 269 4,717 202 Q4FY20 Q3FY21 Q4FY21 FY20 FY21 Q4FY20 Q3FY21 Q4FY21 FY20 FY21 ▪ Revenues were up by 80% YoY in Q4 FY21, on ▪ EBITDA at ₹269 crore in Q4 FY21, up 33% account of higher LME
Slide 26: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited EXCELLENCE BY DESIGN 26
Slide 27: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) Business EBITDA (₹ Crore) 1,31,985 18,324 1,18,144 15,422 34,958 40,507 5,242 5,597 29,318 4,216 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 PBT* (₹ Crore) Profit After Tax # (₹ Crore) 9,058 7,732 5,956 5,014 3,153 3,134 2,
Slide 28: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 Gross Debt 67,257 84,181 78,265 71,996 65,994 Cash & Cash Equivalents 27,883 21,879 20,265 18,194 18,575 Net Debt 39,374 62,302 58,000 53,802 47,419 TTM EBITDA 15,061 1
Slide 29: Hindalco Sustainability Updates
Hindalco Sustainability Updates Hindalco Industries Limited EXCELLENCE BY DESIGN 29
Slide 30: Zero Waste to Landfill & Zero Discharge
Zero Waste to Landfill & Zero Discharge Environment Water Consumed & Recycled (mil m3) Fresh water consumption reduced by 8.5% in FY 21. Consumption Recycled Dahej ZLD phase -1, ready in line with our target of all sites ZLD by 2025. Achieved Zero Liquid Discharge at 11 84.0 79.7 78.4 ZLD & Water 71
Slide 31: Renewable Energy & Zero Harm
Renewable Energy & Zero Harm Renewable Energy Safety Program Update • Additional 2.3 MW Solar was commissioned in Alupuram, Kerala unit in Sep’20 taking the total Renewable capacity of Hindalco to 49 MW. • Serious Injuries and Fatality prevention program implementation • In line with our target of 1
Slide 32: In Summary
In Summary Hindalco Industries Limited EXCELLENCE BY DESIGN 32
Slide 33: Our Key Focus
Our Key Focus Resilient & Strong Performance Strong Balance Sheet Integration & Synergy Strong performance across all segments Robust cash generation and Integration of Aleris with accelerated while maintaining safe and stable accelerating the pace of deleveraging synergy realization and value captu
Slide 34: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 35: Annexures
Annexures Hindalco Industries Limited EXCELLENCE BY DESIGN 35
Slide 36: Awards & Recognitions – FY 2020-21
Awards & Recognitions – FY 2020-21 ▪ Hindalco recognised as Aluminium Industry Leader for its sustainability performance in the 2020 edition of the S&P Dow Jones Sustainability Indices (DJSI) Corporate Sustainability Assessment (CSA) rankings ▪ Hindalco named as a Smart Industry Transformational Lea
Slide 37: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change (₹ Crore) Particulars Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 YoY % Change % YoY % Revenue from Operations 29,318 34,958 40,507 38% 16% 1,18,144 1,31,985 12% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 2,773 3,711 3,705 34% 0%
Slide 38: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ Particulars Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 Change % Change % Change% Revenue from Operations 10,014 11,425 14,471 45% 27% 40,324 42,925 6% EBITDA Aluminium 1,043 1,323 1,610 54% 22% 3,749 4,855 30% Copper 406 202 269 -34% 33% 1,276 716
Slide 39: Production – Alumina
Production – Alumina Alumina* (KT) 2,735 2,699 720 675 697 Q4 FY20 Q3 FY21 Q4 FY21 FY20 FY21 ▪ Alumina production was low in Q4 FY21 on account of planned maintenance shutdown at Utkal Alumina Refinery *Hydrate as Alumina Hindalco Industries Limited EXCELLENCE BY DESIGN 39
Slide 40: 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.