Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY23 Earnings Presentation
58 slides from Hindalco Industries's earnings presentation, Aug 10, 2022
Slide 1: Outcome of Board Meeting cover letter
BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street Plot No. C/1, G Block Mumbai: 400 001 Bandra Kurla Complex Scrip Code: 500440 Bandra (East) Mumbai – 400 051 Scrip Code: HINDALCO Mr. Daniel Schammo Banque Internationale A Luxembour
Slide 2: Media Release: Hindalco Reports First Quarter FY23 Results
Media Release Hindalco Reports First Quarter FY23 Results Diversified business model once again delivers record-breaking profitability Quarterly Net Profit at an all-time high of ₹4,119 crore, up 48% YoY Key Highlights of Q1 FY23 (vs Q1 FY22) ▪ All-time high quarterly Consolidated PAT at ₹4,119 cror
Slide 3: Consolidated Financial Highlights for the Quarter ended June 30, 2022
Consolidated Financial Highlights for the Quarter ended June 30, 2022 (₹ Crore) Particulars Q1 FY22 Q4 FY22 Q1 FY23 Revenue from Operations 41,358 55,764 58,018 Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 4,090 3,247 4,334 Aluminium Upstream 2,317 3,742 3,272 Aluminiu
Slide 4: Consolidated Results and Business Segment Performance
Consolidated Results Hindalco reported an all-time high EBITDA of ₹8,640 crore (vs ₹6,790 crore) in Q1 FY23, up 27% YoY. The excellent results were driven by better macros, robust performance of Aluminium Downstream and Copper businesses along with better operating efficiencies. Consolidated revenue
Slide 5: Business Updates & Recognition
Business Updates & Recognition • Additional 350 Kt expansion via debottlenecking at Utkal Alumina in progress. • Novelis’ ~$3.4 billion of strategic capital investment projects have commenced. • Hindalco signed an MoU with Phinergy, a leading Israel-based pioneer in metal-air battery technology, and
Slide 6: Hindalco Industries Limited Q1 FY23
Hindalco Industries Limited Q1 FY23 Earnings Presentation 10th August, 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 – Q1 FY23 2. Key Highlights – Q1 FY23 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial - Novelis - Aluminium : Upstream Business - Aluminium : Downstream Business • Aluminium - Copper - Consolidat
Slide 9: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 10: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Environment Total Bauxite Residue except from Utkal Refinery Zero waste to landfill by 2030 136.5% • 96% of total waste got recycled and reused (w/w of generation) in Q1 FY23 . • 136% of Bauxite Residue from three out of four Alumina Refin
Slide 11: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewables Aluminium Specific GHG Emissions (t CO2e/t) • FY25 Target – 300 MW (200 MW w/o Storage; 100 MW w/storage) ; Of this 100 MW already installed 19.8 19.7 19.6 till FY22 • Plan for FY23 - 109 MW 18.90 • 4 MW Power with Biomass boiler at Belagavi –Commis
Slide 12: Business Performance Key Highlights - Q1 FY23
Business Performance Key Highlights - Q1 FY23 Hindalco Industries Limited 7
Slide 13: Key Highlights: Q1 FY23
Key Highlights : Q1 FY23 ▪ Record quarterly financial performance supported by thrust on operational efficiencies, and robust performance of copper and downstream businesses, despite rising input costs and inflationary pressures ▪ Record Quarterly EBITDA at ₹8,640 crore (₹6,790 crore), up 27% YoY Co
Slide 14: Key Highlights: Q1 FY23 ...Contd.
Key Highlights : Q1 FY23 ...Contd. ▪ EBITDA at ₹3,272 crore (vs ₹2,317 crore) up 41% YoY on account of favorable macros, higher volumes and better operational efficiencies, offset by rising input costs ▪ EBITDA per ton at $1,274 in Q1FY23 (vs $966/ton); up 32% YoY. Aluminium ▪ EBITDA margin of 38% (
Slide 15: Economy & Industry Updates
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 16: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 9.8 10.3 6.1 8.5 8.7 5.6 5.4 8.0 8.3 8.3 7.4 7.0 7.2 4.3 6.6 6.4 3.5 3.5 3.6 3.5 3.9 3.6 5.5 3.4 3.2 3.0 2.9 2.9 4.2 3.9 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22F CY23F -0.1 FY08 FY09 FY10 FY11
Slide 17: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 3,280 1% 2% 0% -2% 2,882 33.6 34.1 16.9 17.3 34.1 34.3 17.7 17.3 (0.5) (0.2) (0.8) 0.0 2,762 2,648 2,400 19.4 19.7 19.8 19.5 2,096 0.2 0.0 0.2 (0.1) 0.
Slide 18: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand of Aluminium (in Kt) 908 939 1030 1038 1006 161 221 171 188 162 450 394 419 381 380 340 396 419 422 416 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q1 FY23, the domestic demand is likely to reach 1006 Kt (11%
Slide 19: 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%). 1. Beverage Cans ~5% 2. Automotive ~10% 3. Specialities ~4% 4. Aerospace ~30% CY22E Growth CY22E Growth CY22E Growth CY22E Growth • Stable, strong demand for • High levels
Slide 20: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 1.6% 1.3% 12.2 12.4 12.0 12.1 -2.5% 1.6% 6.9 7.2 5.6 5.7 6.3 6.1 6.3 6.4 3.5 3.6 2.8 2.9 5.3 5.2 6.4 6.4 2.7 2.5 3.5 3.5 H1 CY21 H1 CY22 Q2 CY21 Q2 CY22 H1 CY21 H1 CY22 Q2 CY21 Q2 CY22 Production Consumpti
Slide 21: Domestic Copper Industry
Domestic Copper Industry Domestic Demand (kT) 192 172 173 160 162 33 33 99 118 43 38 44 139 140 117 124 93 74 Q4 FY20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Domestic Supply Import ▪ In Q1 FY23, market demand increased by ~47% YoY at 173 kT vs 118 KT in Q1 FY22 while Imports have declined by ~25%, Y
Slide 22: Business Performance: Q1 FY23
Business Performance : Q1 FY23 Hindalco Industries Limited 17
Slide 23: Novelis
Novelis Hindalco Industries Limited 18
Slide 24: Operational Performance – Novelis
Operational Performance – Novelis ▪ Diversified product portfolio and capitalizing on solid demand across end markets helped to deliver Overall Shipments (KT) a strong performance; Mitigating rising operating and energy costs through favorable pricing environment, hedging, and higher recycling benef
Slide 25: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 5.1 4.8 555 561 583 570 3.9 431 437 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 ▪ Net sales in Q1FY23 stands at $5.1 ▪ Record adjusted EBITDA at $561 million in ▪ Record Adjus
Slide 26: Aluminium: Upstream Performance
Aluminium : Upstream Performance Hindalco Industries Limited 21
Slide 27: Aluminium Upstream Business
Aluminium Upstream Business Production (Kt) ▪ Production up 3% YoY and Shipments Shipments (Kt)* 341 333 were up 2% YoY. 325 326 327 319 ▪ Revenue was up 41% YoY, with higher global prices of aluminium and higher volumes in Q1 FY23 vs Q1 FY22 ▪ EBITDA at ₹3,272 crore, up 41% YoY in Q1 FY22 Q4 FY22 Q
Slide 28: Aluminium: Downstream Performance
Aluminium : Downstream Performance Hindalco Industries Limited 23
Slide 29: Aluminium Downstream Business
Aluminium Downstream# Business Sales (Kt) ▪ Production in Q1 FY23 was lower by Production (Kt) 2% YoY and Sales were lower by 5% YoY. 93 86 92 84 82 78 ▪ Revenues were up 19% YoY, with higher global prices of aluminium in Q1 Q1 FY22 Q4 FY22 Q1 FY23 FY23 vs Q1 FY22 Q1 FY22 Q4 FY22 Q1 FY23 ▪ EBITDA at
Slide 30: Copper
Copper Hindalco Industries Limited 25
Slide 31: 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 94 92 was 92Kt whereas Copper Rods 79 69 Production was 79Kt in 63 44 Q1FY23. Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 ▪ Quarterly Metal sales in Sales : Copper M
Slide 32: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 10,529 565 9,787 7,094 387 261 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 ▪ Revenues were up by 48% YoY in Q1 FY23, ▪ Record EBITDA at ₹565 crore in Q1 FY23 on account of higher global prices of copper compared to ₹261 crore i
Slide 33: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 28
Slide 34: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 55,764 58,018 8,640 7,597 41,358 6,790 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore) 6,088 4,553 4,781 3,860 4,119 3,254 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY
Slide 35: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 Gross Debt 67,836 66,831 65,817 63,237 64,023 Cash & Cash Equivalents 15,923 18,820 22,084 24,141 21,830 Net Debt 51,913 48,011 43,733 39,096 42,193 TTM Adjusted EBITDA
Slide 36: Our Strategic Priorities
Our Strategic Priorities Robust Capital Structure Value Enhancing Growth ESG Commitments Portfolio Enrichment Our Approach Our Approach Our Approach Our Approach • Robust approach to • Strong focus on • Focus on ESG by • Advancing from Capital Allocation expanding capacities taking sustainability ma
Slide 37: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 38: Annexures
Annexures Hindalco Industries Limited 33
Slide 39: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Particulars (₹ Crore) Q1 FY22 Q4 FY22 Q1 FY23 YoY % Change % Revenue from Operations 41,358 55,764 58,018 40% 4% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 4,090 3,247 4,334 6% 33% Aluminium Upstream 2,317 3,742 3,272 41% -13%
Slide 40: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials YOY QoQ Particulars (₹ Crore) Q1 FY22 Q4 FY22 Q1 FY23 Change % Change% Revenue from Operations 13,349 19,628 19,733 48% 1% EBITDA Aluminium - Upstream 2,325 3,738 3,272 41% -12% Aluminium - Downstream 39 140 158 305% 13% Copper 261 387 565 116% 46% Business
Slide 41: Aluminium (India) Business EBITDA and Sales Reconciliation
Aluminium (India) Business EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars Q1 FY22 Q4 FY22 Q1 FY23 EBITDA - Upstream 2,325 3,738 3,272 EBITDA - Downstream 39 140 158 Intersegment (Profit) /Loss Elimination (Net) (83) (19) (66) Metal Price Lag* 71 191 (43) Aluminium Business EBI
Slide 42: Production – Alumina
Production – Alumina Alumina* (KT) 866 878 718 Q1 FY22 Q4 FY22 Q1 FY23 ▪ Total Alumina production was up 22% YoY and 1% sequentially in Q1 FY23 ▪ Record Quarterly production at Utkal Alumina refinery at 586 Kt in Q1 FY23 *Hydrate as Alumina Hindalco Industries Limited 37
Slide 43: 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 44: Statement of Consolidated Unaudited Financial Results
ITYA BIRLA HINDALCO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093 Website: www. dalco.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958PLC011238 Statement of Consolidated Unaudited Financial Results for th
Slide 45: Segmentwise Consolidated Revenue, Results, Assets and Liabilities
Segmentwise Consolidated Revenue, Results, Assets and Liabilities for the Quarter ended June 30, 2022 (® in Crore) Quarter ended Year ended cul 30/06/2022 | 31/03/2022 | 30/06/2021 | 31/03/2022 Particulars (Unaudited) | (Unaudited) | (Unaudited) | (Audited) (Refer Note 5)|(Refer Note 5)|(Refer Note
Slide 46: Notes to Consolidated Results
ADITYA BIRLA Notes: 1. The statement of consolidated unaudited financial results (the “consolidated financial results”) of Hindalco Industries Limited 2. Ss. (“the Company”) and its Subsidiaries {collectively “the Group”) and its interest in Associates and Joint Ventures have been reviewed by the Au
Slide 47: Notes to Consolidated Results (continued)
ADITYA BIRLA The figures of the quarter ended March 31, 2022 are balancing figures between audited figures in respect of the full financial year and published year to date figures up to the third quarter of the financial year ended March 31, 2022. Figures of previous periods have been regrouped/ rec
Slide 48: Statement of Standalone Unaudited Financial Results
ADITYA BIRLA 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 Standalone Unaudited Financia! Results for
Slide 49: Notes to Standalone Results
ADITYA BIRLA Notes: pb The statement of standalone unaudited financial results (the “standalone financial results”) of the Company includes the financial information of 2 Joint Operations and 2 Trusts, have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in
Slide 50: Notes to Standalone Results (continued)
ADITYA BIRLA 5. During the quarter ended June 30, 2022 the company has repaid its Non-Convertible Debentures on their respective redemption dates as below — (in Crore) Amount Redemption Date 30,000 9.55% Redeemable Non-Convertible Debentures of % 10 lakhs each 3,000 25/04/2022 15,000 9.55% Redeemabl
Slide 51: Auditor Review Report - Consolidated
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, tst 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”) which inc
Slide 52: Auditor Review Report - Consolidated (page 2)
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 of 2 6. We did not review the interim financial statements/financial information of three subsidiaries and consolidated interim financial information of one subsidiary included in the consolidat
Slide 53: List of Subsidiaries, Joint Operations and Joint Ventures
Price Waterhouse & Co Chartered Accountants LLP Name Subsidiaries Novelis Inc. (Refer Note below for its downstream entities) Utkal Alumina International Limited AV Minerals (Netherlands) N.V. AV Metals Inc. Minerals & Minerals Limited Suvas Holdings Limited Dahej Harbour & Infrastructure Limited. H
Slide 54: Downstream entities of Novelis Inc.
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 2 of 3 Note- Downstream entities of Novelis Inc. Subsidiaries Novelis do Brasil Ltda Brecha Energetica Ltda 4260848 Canada Inc. 4260856 Canada Inc. 8018227 Canada Inc. Novelis (China) Aluminum Products Co. Ltd. Novelis
Slide 55: Downstream entities of Novelis Inc. (continued)
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 3 of 3 40. Aleris Aluminum UK Limited 41. Aleris Holding Canada ULC 42. Novelis ALR Aluminum Holdings Corporation 43. Novelis ALR International, Inc. 44. Novelis ALR Rolled Products, LLC 45. Novelis ALR Rolled Products,
Slide 56: Auditor Review Report - Standalone
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, 1% 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”) which inc
Slide 57: Auditor Review Report - Standalone (page 2)
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 of 3 6. The standalone unaudited financial results includes the interim financial information of two joint operations and two trusts which have not been reviewed by their auditors, whose interim
Slide 58: Annexure 1: Trusts and Joint Operations
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 3 of 3 Annexure -1 Sl. No. | Name of the Trust 1 Trident Trust 2. Hindaleo Employee Welfare Trust Sl. No. | Name of Joint Operation 1. Tubed Coal Mines Limited 2. Mahan Coal Limited