Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY22 Earnings Presentation
54 slides from Hindalco Industries's earnings presentation, Feb 10, 2022
Slide 1: Hindalco Reports Consolidated Q3 FY22 Results
Media Release Hindalco Reports Consolidated Q3 FY22 Results Positive macro trends and value-added product portfolio take performance to a new high Net Profit up 96%, at a record-high of ₹3,675 crore Key Highlights of Q3 FY22 ▪ All-time high Consolidated PAT at ₹3,675 crore, up 96% YoY ▪ Consolidated
Slide 2: Consolidated Financial Highlights for the Quarter ended December 31, 2021
Table: Consolidated Financial Highlights for the Quarter ended December 31, 2021 (₹ Crore) Particulars Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9M FY22 Revenue from Operations 34,958 47,665 50,272 91,478 1,39,295 Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,711 4,100 3,792 9,0
Slide 3: Business Segment Performance in Q3 FY22 (vs Q3 FY21)
Business Segment Performance in Q3 FY22 (vs Q3 FY21) Novelis Novelis recorded quarterly adjusted EBITDA of $506 million (vs $501 million), up 1% YoY, on the back of strong product pricing and mix as well as favourable metal benefits, which mitigated inflationary cost pressures and supply chain disru
Slide 4: Consolidated Results
Consolidated Results Hindalco reported an EBITDA of ₹7,624 crore (vs ₹5,521 crore), up 38% YoY. The results were driven by positive macros and focus on downstream value-added products along with better operating efficiencies. Consolidated Revenue for the third quarter stood at ₹50,272 crore (vs ₹34,
Slide 5: About Hindalco and disclaimer
Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, and a captive jetty. The copper smelter is among the world’s largest custom smelters at a single location. Hindalco’s global footprint spans 50 manufacturing units across 10 countries. Registered Offic
Slide 6: Hindalco Industries Limited Q3 FY22
Hindalco Industries Limited Q3 FY22 Earnings Presentation 10th February, 2022
Slide 7: 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 8: Table of Content
Table of Content 1. Sustainability Updates 2. Key Highlights – Q3 FY22 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial – Q3 FY22 - Novelis - Aluminium (India) - Copper • Aluminium - Consolidated (India) 5. Annexures : - Consolidated - Key
Slide 9: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 10: Hindalco: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Environment Total Bauxite Residue (% Recycled from 3/4 Refineries) • 81% of total wastes recycled and reused in YTD-FY22 • 95% of Bauxite Residue from three refineries is re-used in Cement making 100% 95% • Utkal refinery is conducting pil
Slide 11: Hindalco: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewable Energy Aluminium Sp. Energy (%) Total Target : 200 MW by FY25 (Indexed to FY12 Base) Renewables (100 MW in FY22) • Completed installation of on-site Solar projects at Renukoot, Renusagar, Mahan, Mouda and an off- 83.9% site project for Taloja facilit
Slide 12: Business Performance Key Highlights - Q3 FY22
Business Performance Key Highlights - Q3 FY22 Hindalco Industries Limited 7
Slide 13: Key Highlights: Q3 FY22
Key Highlights : Q3 FY22 ▪ Shipments were flat YoY, at 930Kt vs 933Kt in Q3FY21, impacted by ongoing semiconductor chip shortage, unplanned downtime, and supply chain bottlenecks ▪ Adjusted EBITDA at $506 million ($501 million), up 1% YoY ; Adjusted EBITDA per ton at $544 ($537/t) up 1% YoY Novelis*
Slide 14: Key Highlights: Q3 FY22 ...Contd.
Key Highlights : Q3 FY22 ...Contd. ▪ All smelters ran optimally, delivering a consistent performance in quarter three ▪ Cathode production was at 102Kt (51Kt) up 99% YoY ; CC Rods production was 77Kt (67Kt) up 15% YoY Copper ▪ Metal sales volume at 110Kt (73Kt) up 50% YoY; CC Rods sales at 71kt (65K
Slide 15: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 16: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 9.8 10.3 5.6 5.9 9.2 5.4 8.5 8.3 8.3 8.0 4.4 7.4 7.0 4.3 6.6 6.4 3.5 3.5 3.6 3.5 3.4 3.9 3.6 5.5 3.0 2.9 4.2 3.9 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E CY11 CY20 CY07 CY08 CY09 CY10 CY12 CY13 CY14
Slide 17: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 4% 1% 9% 1% 2,762 2,648 64.7 67.5 16.7 16.8 62.9 68.5 16.9 17.0 1.8 (1.1) (0.1) (0.2) 2,400 36.7 38.5 40.0 2,096 37.8 1,916 1,690 1,704 1,497 28.0 28.9
Slide 18: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 574 747 1018 1073 908 939 1033 195 237 159 188 162 122 455 442 415 381 116 262 380 272 363 382 422 340 396 419 186 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q3 FY22, the domestic demand
Slide 19: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ The global FRP Demand is estimated to grow by ~6% in CY22 (vs CY21 growth of ~10%). Beverage Cans ~5% Automotive ~20% Specialities ~4% Aerospace ~30% CY22E Growth in Market Demand CY22E Growth in Market Demand CY22E Growth in Market Demand CY22E Growth
Slide 20: Copper Industry (Global)
Copper Industry (Global) Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 2.4% 4.7% 23.4 24.0 23.9 22.8 9.5 10.1 12.4 12.7 -2.0% -1.6% 6.1 6.0 6.2 6.1 13.9 13.9 10.4 11.2 3.4 3.3 3.6 3.5 2.5 2.5 2.8 2.8 CY20 CY21 Q4 Q4 CY20 CY21 Q4 Q4 CY20 CY21 CY20 CY21 YTD CY21 (vs YTD CY20)
Slide 21: Copper Industry (Domestic)
Copper Industry (Domestic) Domestic Demand (KT) 165 161 162 150 160 59 42 43 38 37 118 91 44 40 124 113 106 119 117 74 51 Q1FY21 Q2 FY21 Q3FY21 Q4FY21 Q1FY22 Q2 FY22 Q3 FY22 Domestic Supply Import ▪ Market demand declined by ~2% YoY at 162 KT in Q3 FY22 vs Q3 FY21; Imports have declined by 36% YoY ▪
Slide 22: Business Performance: Q3 FY22
Business Performance : Q3 FY22 Hindalco Industries Limited 17
Slide 23: Novelis
Novelis Hindalco Industries Limited 18
Slide 24: Operational Performance – Novelis
Operational Performance – Novelis Overall Shipments (KT) ▪ Shipments in Q3FY22 were flat, YoY at 930 Kt in a seasonally low third quarter ▪ Q3 FY22 reflected higher aerospace and automotive shipments, despite semiconductor 2,871 2,630 constraints, offset by lower Can shipments impacted mainly by unp
Slide 25: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 12.3 571 562 1,614 537 544 460 8.6 1,209 4.1 4.3 501 553 506 3.2 Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 ▪ Net sales in Q3 FY22 s
Slide 26: Aluminium (India)
Aluminium (India) Hindalco Industries Limited 21
Slide 27: 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 up 4% 257 YoY and 1% QoQ 913 968 180 ▪ Aluminum VAP production in Q3 FY22 was higher by 4% YoY and sequentially 322 327 84 84 88 315 ▪ Alumina production
Slide 28: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 22,322 8,975 14,526 7,812 8,243 3,247 3,376 3,622 5,294 1,461 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9MFY22 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9MFY22 ▪ Aluminium revenues were up 56% YoY, with ▪ Record EBITDA at ₹3,376 crore, up 131% Y
Slide 29: Copper
Copper Hindalco Industries Limited 24
Slide 30: 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 was 190 265 higher by 99% YoY in Q3 158 FY22 whereas Copper Rods 165 Production was up 15% YoY 70 77 100 102 67 51 Q3FY21 Q2FY22 Q3FY22 9M FY21 9M FY22 Q3FY21 Q2FY22 Q3FY22
Slide 31: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 26,936 1,003 13,938 547 9,587 10,255 390 352 6,133 240 Q3FY21 Q2FY22 Q3FY22 9M FY21 9M FY22 Q3FY21 Q2FY22 Q3FY22 9M FY21 9M FY22 ▪ Revenues were up by 67% YoY in Q3 FY22, ▪ EBITDA at ₹390 crore in Q3 FY22 compared to on accou
Slide 32: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 27
Slide 33: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 1,39,295 22,462 91,478 13,051 47,665 50,272 8,048 7,624 34,958 5,521 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9M FY22 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9M FY22 PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore) 14,79
Slide 34: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 Gross Debt 71,996 65,994 67,836 66,831 65,817 Cash & Cash Equivalents 18,194 18,575 15,923 18,820 22,084 Net Debt 53,802 47,419 51,913 48,011 43,733 TTM Adjusted EBITDA
Slide 35: Key Focus Areas
Key Focus Areas Product Mix Diversification Profitable Growth / Enhancement Profitable growth through investments in recycling, debottlenecking and organic Enrich product mix through increasing the share expansions in more stable and predictable of high-end value-added products in the overall downst
Slide 36: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 37: Annexures
Annexures Hindalco Industries Limited 32
Slide 38: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9M FY22 YoY % Change % YoY % Revenue from Operations 34,958 47,665 50,272 44% 5% 91,478 1,39,295 52% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,711 4,100 3,792 2% -
Slide 39: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ Particulars Q3 FY21 Q2 FY22 Q3 FY22 9M FY21 9M FY22 Change % Change % Change% Revenue from Operations 11,425 17,393 18,485 62% 6% 28,454 49,227 73% EBITDA Aluminium 1,461 3,247 3,376 131% 4% 3,622 8,975 148% Copper 240 352 390 63% 11% 547
Slide 40: Production – Alumina
Production – Alumina Alumina* (KT) 2,369 2,002 793 858 675 Q3 FY21 Q2 FY22 Q3 FY22 9MFY21 9MFY22 ▪ Total Alumina production was up 27% YoY and 8% sequentially in Q3 FY22 ▪ Record Quarterly production at Utkal Alumina refinery at 563 Kt in Q3 FY22 *Hydrate as Alumina Hindalco Industries Limited 35
Slide 41: 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 42: Price Waterhouse & Co Chartered Accountants LLP
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai-400093 1. We have reviewed the consolidated unaudited financial results of Hindalco Industries Limited (the “Parent”), its subs
Slide 43: Price Waterhouse & Co Chartered Accountants LLP
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 of 2 5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph
Slide 44: Annexure 1 - Subsidiaries
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 1 of 3 Annexure - 1 Sr. No. Name Subsidiaries 1 Utkal Alumina International Limited 2 Minerals & Minerals Limited 3 AV Minerals (Netherlands) N.V. 4 Dahej Harbour & Infrastructure Limited 5 Hindalco Almex Aerospace Limi
Slide 45: Annexure 1 - Subsidiaries (continued)
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 2 of 3 Annexure - 1 Sr. No. Name 38 Novelis Switzerland S.A. 39 Novelis MEA Ltd. 40 Novelis Europe Holdings Limited 41 Novelis UK Ltd. 42 Novelis Services Limited 43 Novelis Corporation 44 Novelis South America Holdings
Slide 46: Annexure 1 - Joint Ventures and Associate companies
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 3 of 3 Annexure - 1 Sr. No. Name Joint Ventures 1 MNH Shakti Limited 2 Hydromine Global Minerals (GMBH) Limited Associate companies 1 Aditya Birla Science & Technology Company Private Limited 2 Aditya Birla Renewables S
Slide 47: Statement of Consolidated Unaudited Financial Results
ADITYA BIRLA Hil IDALCO HINDALCO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093 Website: www.hindalco.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958PLC011238 Statement of Consolidated Unaudited Financial
Slide 48: Segmentwise Consolidated Revenue, Results, Assets and Liabilities
ADITYA BIRLA HINDALC! Segmentwise Consolidated Revenue, Results, Assets and Liabilities for the Quarter and Nine Months ended December 31, 2021 (in Crore} Quarter ended Ninemonths ended | Year ended Particulars 31/12/2021 | 30/09/2021 | 31/12/2020 | 31/12/2021 | 31/12/2020 | 31/03/2021 (Unaudited) |
Slide 49: Notes to Consolidated Financial Results
ADITYA BIRLA HINDA Notes: 1. 4. These statement of consolidated unaudited financial results (the “consolidated financial results”) of the Company and its subsidiaries (collectively “the Group”) and its interest in associates and joint ventures have been reviewed by the Audit Committee and approved b
Slide 50: Additional Ratios and Disclosures
ADITYA BIRLA HINDA 13. [inventory Turnover (in times): 5.04 5.12 4.90 5.11 4.64 4.98 [Revenue from Operations/ Average inventory] - Annualised 14 |Operating Margin (in %) = 15% 16% 15% 15% 1394 1394 [(Profit from Continuing Operations before Depreciation, Amortization, Impairment Loss on Non-Current
Slide 51: Price Waterhouse & Co Chartered Accountants LLP – Standalone Review
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, 1st Floor, B Wing Mahakali Caves Road, Andheri (East) Mumbai - 400093 1. We have reviewed the standalone unaudited financial results of Hindalco Industries Limited (the “Company”) for the
Slide 52: Statement of Standalone Unaudited Financial Results
ADITYA BIRLA HINDALGO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093 Website: www.hindalco.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958PLC011238 Statement of Standalone Unaudited Financial Results for
Slide 53: Notes to Standalone Financial Results
ADITYA BIRLA The statement of standalone unaudited financial results (the “standalone financial results”) of the Company have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in their meeting held on February 10, 2022. The Company has allotted 189,357 and 75
Slide 54: Notes and Board Signature
ADITYA BIRLA 7. Figures of previous periods have been regrouped/ reclassified wherever necessary to conform to current period classification. By and on behalf of the Board Place: Mumbai Satish Pai Dated: February 10, 2022 Managing Director