Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY19 Earnings Presentation
29 slides from Hindalco Industries's earnings presentation, Nov 2, 2018
Slide 1: Hindalco Industries Limited Q2 FY19 Earnings Presentation
Hindalco Industries Limited Q2 FY19 Earnings Presentation 02nd November, 2018
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 Key Highlights – Q2 FY19 04 • Aluminium Economy & Industry Updates – Global & Domestic 07 Result Highlights : Operational Performance – Q2 & H1 FY19 11 • Copper Result Highlights : Financial Performance – Q2 & H1 FY19 18 Appendix 25 • Novelis Inc. Hindalco Industries Limited EXCELLE
Slide 4: Key Highlights – Q2 FY19
Key Highlights – Q2 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 4
Slide 5: Key Highlights – Q2 FY19
Key Highlights – Q2 FY19 EBITDA of Rs. 1,922 crore vs Rs. 1,825 crore in Q2 FY18, up 5%, despite rising input costs, mainly coal and furnace oil Hindalco Profit Before Tax at Rs. 968 crore vs Rs. 792 crore in Q2 FY18 (before exceptional items), up 22%, due to lower interest cost and higher EBITD
Slide 6: Key Highlights – Q2 FY19 ..Contd.
Key Highlights – Q2 FY19 ..Contd. EBITDA at Rs. 388 crore vs Rs. 467 crore in Q2 FY18, down 17%, on account of planned maintenance shutdown in July 2018 and lower copper realizations. Copper Cathode production was down at 72 Kt in Q2 FY19 vs 96 Kt in Q2 FY18, due to planned maintenance shutdown
Slide 7: Economy & Industry : Global & Domestic
Economy & Industry : Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7
Slide 8: Economy Updates
Economy Updates Global Economy IMF Marginally Moderated the Global Growth (% YoY) US continues to grow at 3.5% in Q3-CY18 vs 2.8% Q3-CY17 3.7 3.7 3.7 o Driven by strong consumption, investment and Govt 3.6 spending 3.5 Euro Area economic activities remains subdued 3.3 o In Q3 CY18 economy grew b
Slide 9: Aluminium Industry
Aluminium Industry Global Market Scenario ( MnT) Movement of LME and Domestic Premium 27.4 27.1 25.7 26.9 2,259 2,300 140 20.3 20.6 21.8 22.4 2,159 2,102 2,057 2,100 2,012 117 100 102 -1.6 -1.7 1.7 0.2 1,900 90 95 84 60 Production Demand Market Production Demand Market 1,700 Balance Balance 1,500 20
Slide 10: Copper Industry
Copper Industry Global Market Scenario (MnT) LME Price of Copper (USD/t) 10.6 10.8 8.8 8.9 6,808 6,961 6,872 8.1 8.4 6,349 6,105 6.3 6.9 5,831 5,660 1.8 1.8 -1.8 -1.6 Production Consumption Balance Production Consumption Balance Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 World Ex. China
Slide 11: Result Highlights: Operational Performance – Q2 FY19
Result Highlights : Operational Performance – Q2 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 11
Slide 12: Operational Performance : Aluminium
Operational Performance : Aluminium Hindalco Industries Limited EXCELLENCE BY DESIGN 12
Slide 13: Production – Alumina, Aluminium Metal & VAP
Production – Alumina, Aluminium Metal & VAP Alumina (Inc. Utkal Alumina) KT Aluminium Metal (KT) VAP incl. Wire Rod (KT) 1,437 1,396 647 649 239 240 712 695 701 326 323 326 119 117 123 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1
Slide 14: Operational Performance : Copper
Operational Performance : Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 14
Slide 15: Production – Copper
Production – Copper Cathode (KT) CC Rod (KT) DAP (KT) 110 158 204 79 118 153 61 88 49 70 96 39 81 72 51 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 • Cathode production was lower due to • CCR – 3 is ramping up as per • DAP P
Slide 16: Operational Performance : Novelis Inc
Operational Performance : Novelis Inc Hindalco Industries Limited EXCELLENCE BY DESIGN 16
Slide 17: Operational Performance - Novelis Inc.
Operational Performance - Novelis Inc. Strong quarterly performance on the back of increased asset optimization, better product mix and favorable market conditions. Overall Shipments (KT) Global demand for aluminum Flat Rolled Product (FRP) remains high 1587 1604 Total FRP shipments grew 1% at
Slide 18: Result Highlights : Financial Performance – Q2 FY19
Result Highlights : Financial Performance – Q2 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 18
Slide 19: Hindalco Standalone plus Utkal Alumina
Hindalco Standalone plus Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 20,727 21,503 3,873 3,486 10,313 10,670 10,833 1,951 1,922 1,825 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore) 1,975
Slide 20: Hindalco Aluminium plus Utkal Alumina
Hindalco Aluminium plus Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 11,803 2,895 10,233 2,337 5,668 6,135 1,531 5,218 1,204 1,364 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 • EBITDA up 13% YoY in Q2 FY18 on account of better macros and stable operations,
Slide 21: Copper Business
Copper Business Revenue (Rs. Crore) EBITDA (Rs. Crore) 10,500 789 9,715 723 467 5,097 5,006 388 4,710 335 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 • Revenues were lower due lower volumes on account of planned maintenance shutdown in Q2 FY19 in one of the smelte
Slide 22: Novelis Inc.
Novelis Inc. Revenue (USD billion) Adjusted EBITDA (USD million) Adjusted EBITDA* per tonne 689 6.1 419 440 429 5.4 591 377 372 334 355 3.1 3.1 302 2.8 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 • Revenues up by 11% to US$
Slide 23: In Summary
In Summary Sustainable Business Balance Sheet Performance • Consolidated Net Debt to EBITDA at 2.84x at the end of September Strong business performance, 2018. despite rising costs • Deleveraging continues at Strong growth in profitability Hindalco – Prepaid project loans aided by reduction in f
Slide 24: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 25: Appendix
Appendix Hindalco Industries Limited EXCELLENCE BY DESIGN 25
Slide 26: Sales Volumes – Aluminium & Copper
Sales Volumes – Aluminium & Copper Aluminium Metal Sales in all forms (KT) Copper Sales (KT) 628 626 198 160 329 300 326 93 82 79 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 26
Slide 27: Financial Key Figures – Hindalco Standalone plus Utkal Alumina
Financial Key Figures – Hindalco Standalone plus Utkal Alumina (Rs. Crore) YOY YOY Particulars Q2 FY18 Q1 FY19 Q2 FY19 Change H1 FY18 H1 FY19 Change % % Revenue from Operations 10,313 10,670 10,833 5% 20,727 21,503 Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium (includes Utkal) 1,2
Slide 28: Financial Key Figures – Hindalco Standalone
Financial Key Figures – Hindalco Standalone (Rs. Crore) YOY YOY Particulars Q2 FY18 Q1 FY19 Q2 FY19 H1 FY18 H1 FY19 Change % Change % Revenue from Operations 10,313 10,593 10,833 5% 20,726 21,426 Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium 962 1,011 744 -23% 1,842 1,755 -5% Copp
Slide 29: 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