Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY22 Earnings Presentation
37 slides from Hindalco Industries's earnings presentation, May 26, 2022
Slide 1: Hindalco Industries Limited Q4 FY22 Earnings Presentation
Hindalco Industries Limited Q4 FY22 Earnings Presentation 26th May, 2022
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. Sustainability Updates – FY22 2. Key Highlights – Q4 FY22 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial - Novelis - Aluminium (India) - Copper • Aluminium - Consolidated (India) 5. Annexures : - Awards & Recognitions
Slide 4: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 5: Hindalco: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Environment Total Bauxite Residue* from 3 out of 4 refineries (% Recycled) • 86% of total waste got recycled and reused (w/w of generation) in FY22. • 102% of Bauxite Residue from three out of four Alumina Refineries (except Utkal) reused
Slide 6: Hindalco: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewables Aluminium Specific GHG Emissions (t CO2e/t) (Primary + Downstream) Reached its target of 100 MW of Installed Capacity in FY22 (Target 200 MW w/o Storage & 100 MW w/storage by FY25) 20.1 • Of which total 50 MW Solar capacity installed at Renukoot, Re
Slide 7: Business Performance Key Highlights - Q4 FY22
Business Performance Key Highlights - Q4 FY22 Hindalco Industries Limited 7
Slide 8: Key Highlights: Q4 FY22
Key Highlights : Q4 FY22 ▪ Record Shipments at 987Kt up from 983Kt in Q4FY21 ▪ Adjusted EBITDA at $431 million* ($505 million*) down 15% YoY primarily due to cost inflation, semiconductor chip shortage in automotive and a short-term operational cost challenges; Adjusted EBITDA per ton at $437* ($514
Slide 9: Key Highlights: Q4 FY22 ...Contd.
Key Highlights : Q4 FY22 ...Contd. ▪ Cathode production was at 94Kt (97Kt); CC Rods production was 69Kt (76Kt) ▪ Metal sales volume at 105Kt (107Kt); CC Rods sales at 74kt (73Kt), up 1% YoY, in line with the market demand Copper ▪ EBITDA at ₹387 crore (₹322 crore) up 20% YoY, on the back of better o
Slide 10: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 11: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 9.8 10.3 6.1 8.5 9.0 5.6 5.4 8.0 8.3 8.3 7.4 7.0 7.2 6.6 6.4 4.3 5.5 3.6 3.9 3.6 3.6 3.5 3.5 3.5 3.4 3.9 4.2 3.0 2.9 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22F -0.1 -6.6 -3.2 ▪ Global economic gr
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 3,280 4% 10% 2% 64.7 67.4 16.7 16.8 62.9 69.0 16.5 16.9 1.8 (1.6) 0.3 (0.1) 2,762 2,648 2,400 36.7 38.6 40.1 2,096 37.8 2.9 28.0 28.8 9.7 9.6 25.1 28.8
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 574 747 1018 1073 908 939 1030 1038 195 237 161 213 188 162 122 450 442 415 381 402 116 262 380 272 363 382 422 340 396 419 423 186 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q4
Slide 14: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ Global FRP Demand is estimated to grow by ~6% in CY22 (vs CY21 growth of ~10%). Beverage Cans ~5% Automotive ~10% Specialities ~4% Aerospace ~30% CY22E Growth in Market Demand CY22E Growth in Market Demand CY22E Growth in Market Demand CY22E Growth in
Slide 15: Copper Industry (Global)
Copper Industry (Global) Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 4.0% 6.0% 23.4 24.3 23.0 24.4 10.4 11.1 14.0 13.9 3.2% 0.9% 6.1 6.3 5.69 5.74 12.7 13.3 9.5 10.4 3.5 3.6 2.81 2.85 2.6 2.7 2.89 2.90 CY20 CY21 Q1 CY 21 Q1 CY22 CY20 CY21 Q1 CY 21 Q1 CY22 Production Consu
Slide 16: Copper Industry (Domestic)
Copper Industry (Domestic) Domestic Demand (KT) 192 165 172 161 160 162 150 33 99 42 118 43 38 37 59 91 44 40 139 113 119 117 124 93 106 74 51 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Domestic Supply Import ▪ Market demand increased by ~6.8% YoY at 172 KT in Q4 FY22 vs
Slide 17: Business Performance: Q4 FY22
Business Performance : Q4 FY22 Hindalco Industries Limited 17
Slide 18: Novelis
Novelis Hindalco Industries Limited 18
Slide 19: Operational Performance – Novelis
Operational Performance – Novelis Overall Shipments (KT) ▪ Shipments in Q4FY22 were at a record 987 Kt, vs. 983 kt in Q4FY21, driven by strong 3,858 beverage can and aerospace shipments offset by lower automotive shipments on account of 3,613 semiconductor shortages in the automotive industry. ▪ ~$3
Slide 20: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 17.1 2,045 514 544 530 474 12.3 1,714 437 4.3 4.8 505 506 3.6 431 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 ▪ Net sales in Q4 FY22 stands at $4
Slide 21: Aluminium (India)
Aluminium (India) Hindalco Industries Limited 21
Slide 22: 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 3% 349 1,229 1,294 YoY and was flat QoQ 269 ▪ Aluminum VAP production in Q4 FY22 was higher by 3% YoY and 5% 89 88 92 316 327 326 sequentially Q4 FY21
Slide 23: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 32,169 13,025 20,495 5,441 8,243 9,847 3,376 4,050 5,969 1,819 Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 ▪ Aluminium revenues were up 65% YoY, with ▪ Record EBITDA at ₹4,050 crore, up 123% YoY in Q
Slide 24: Copper
Copper Hindalco Industries Limited 24
Slide 25: Copper Metal & VAP - Production and Sales in Kt
Copper Metal & VAP - Production and Sales in Kt Production : Copper Cathode (Kt) Production : CC Rod (Kt) ▪ Quarterly Cathode Production 359 259 235 was 94Kt whereas Copper Rods 262 Production was 69Kt in Q4FY22. 97 102 94 76 77 69 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Sales
Slide 26: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 36,723 1,390 22,446 869 8,508 10,255 9,787 390 387 322 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 ▪ Revenues were up by 15% YoY in Q4 FY22, ▪ EBITDA at ₹387 crore in Q4 FY22 compared to on account of higher
Slide 27: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 27
Slide 28: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 30,056 1,95,059 1,31,985 18,896 50,272 55,764 7,624 7,597 40,507 5,845 Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore) 19,574 14,201
Slide 29: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 Gross Debt 65,994 67,836 66,831 65,817 63,237 Cash & Cash Equivalents 18,575 15,923 18,820 22,084 24,141 Net Debt 47,419 51,913 48,011 43,733 39,096 TTM Adjusted EBITDA
Slide 30: Our Key Focus Areas
Our Key Focus Areas Value Strong focus on expanding capacities in Enhancing various business segments Growth Stakeholder With a strong balance sheet, ready to Robust Capital ESG ESG commitments to become fuel next phase of organic growth Structure Value Commitments ‘The Industry Leader in Sustainabi
Slide 31: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 32: Annexures
Annexures Hindalco Industries Limited 32
Slide 33: Awards & Recognitions – FY 2021-22
Awards & Recognitions – FY 2021-22 • Hindalco retains position as the world’s most sustainable aluminium company in the DJSI 2021 ranking • The only Aluminium company in the prestigious DJSI World Index 2021 • Hindalco achieved ‘S&P Global Sustainability Yearbook 2022 - Gold Class’ distinction • Hin
Slide 34: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 YoY % Change % YoY % Revenue from Operations 40,507 50,272 55,764 38% 11% 1,31,985 1,95,059 48% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,705 3,792 3,247 -12% -
Slide 35: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ Particulars Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 Change % Change % Change% Revenue from Operations 14,471 18,485 19,628 36% 6% 42,925 68,855 60% EBITDA Aluminium 1,820 3,376 4,050 123% 20% 5,441 13,025 139% Copper 322 390 387 20% -1% 869 1,39
Slide 36: Production – Alumina
Production – Alumina Alumina* (KT) 3,235 2,699 697 858 866 Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 ▪ 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 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.