Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY18 Earnings Presentation
27 slides from Hindalco Industries's earnings presentation, Feb 2, 2018
Slide 1: Investor Presentation – Q3 FY18
Hindalco Investor Presentation – Q3 FY18 February 2, 2018 Mumbai Excellence by Design
Slide 2: Forward Looking & Cautionary Statement
Forward Looking & Cautionary Statement 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
Slide 3: Agenda
Agenda 1 Key Highlights 2 Economy & Industry 3 Result Highlights 4 Operational and Financial Performance Aluminium (India) Copper Novelis Excellence by Design 3
Slide 4: Key Highlights
Key Highlights Excellence by Design
Slide 5: Key Highlights of Q3FY18 (1/2)
Key Highlights of Q3FY18 (1/2) Financial performance EBTIDA at Rs. 1,611 crore up by 15% Y-o-Y on account of better realization and robust financial performance across businesses. PAT of Rs. 376 crore up by 17% Y-o-Y on the back of prepayment and repricing of project loans leading to lower inter
Slide 6: Key Highlights of Q3FY18 (2/2)
Key Highlights of Q3FY18 (2/2) Copper Q3 FY18 EBITDA at Rs. 421 crore, up 28% Y-o-Y on account of favourable macro and higher by-product realization, partly offset by lower copper realization due to over supply in the domestic market Cathode and CC Rod production at 101 Kt and 38 Kt in Q3 FY18 v
Slide 7: Economy and Industry
Economy and Industry Excellence by Design
Slide 8: Global Economy is on Upward Trend
Global Economy is on Upward Trend Global Economy Global economy continued to move upwards in Q3CY17* - 120 countries in Q3CY17 witnessed pickup in economic growth on Y-o-Y terms. US, Japan, Germany and Korea among advanced economies and Brazil, South Africa and China in emerging markets posted b
Slide 9: Aluminium Industry
Aluminium Industry Demand and Supply Growth (%) Aluminium Price Trend (USD/t) 2,100 2,130 2,101 2,070 2016 2017 13.3 2,030 1,902 1,931 1,914 1,887 1,904 1,857 1,791 8.0 6.2 4.0 4.2 2.5 2.4 1.1 Dec-17 May-17 Oct-17 Feb-17 Sep-17 Jun-17 Nov-17 Mar-17 Jul-17 Jan-17 Aug-17 Apr-17 Demand in ROW Productio
Slide 10: Aluminium Macro Drivers
Aluminium Macro Drivers Average LME at its highest levels in the last few quarters. Stronger rupee and unprecedented surge in input costs adversely impacted profitability. Premiums recovered in Q4 FY18 from lows of Q3 FY18; expected to remain firm on strong demand. Over supply in domestic ma
Slide 11: Copper Industry
Copper Industry The concentrate market recorded marginal deficit of ~92 Kt in CY17, mainly on account of major disruptions at Escondida (Chile) & Grasberg (Indonesia) Chinese benchmark TC/RC for 2018 declined around 11% to USD 82.25/8.225 cents vs. USD 92.50/9.25 cents in 2017 LME during CY17
Slide 12: Operational Performance Aluminium (India)
Operational Performance Aluminium (India) Excellence by Design
Slide 13: Production Trend
Production Trend Alumina (Kt) including Utkal VAP incl. Wire Rod (Kt) 2,184 2,170 356 356 3% 744 712 734 123 119 116 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Metal (Kt) New plants continue to operate at designed capacities 949 971 VAP production up by 3% dr
Slide 14: Operational Performance Copper
Operational Performance Copper Excellence by Design
Slide 15: Production
Production Cathode (Kt) CC Rods (Kt) 112 115 305 8% 265 18% 15% 3% 94 96 101 32 38 38 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 DAP (Kt) Cathode production up by 8% Y-o- Y in Q3 FY18 239 (21)% CC rod production witnessed a 174 significant growth in Q3 FY18 a
Slide 16: Operational Performance Novelis
Operational Performance Novelis Excellence by Design
Slide 17: Key Highlights
Key Highlights Total Shipments (Kt) Total shipments grew 6% Y-o-Y to 796 Kt Aluminium Auto Sheet demand continued to be robust - shipments 2,278 2,383 grew Y-o-Y by 12% 6% Highest ever Adjusted EBITDA* per ton 5% at USD 383 due to favorable pricing, 750 802 796 higher volume, cost efficiencies
Slide 18: Financial Performance
Financial Performance Excellence by Design
Slide 19: Financial Highlights – Standalone
Financial Highlights – Standalone (Rs. crore) Description Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Revenue from Operations 9,915 10,308 11,023 27,636 31,738 Earnings Before Interest, Tax and Depreciation (EBITDA) Aluminium 876 957 940 2,555 2772 Copper 330 467 421 960 1210 Other Income 199 153 250 73
Slide 20: Aluminium Standalone
Aluminium Standalone Revenue (Rs. crore) EBITDA (Rs. crore) 15,544 2,772 14,438 2,555 7% 9% 5,213 5,323 876 957 940 4,917 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Higher EBITDA on the back of supportive macros, higher volume, stable operations, partly offset
Slide 21: Utkal
Utkal EBITDA (Rs. crore) 740 73% 407 82% 247 201 143 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Strong performance on back of stable operations 73%Y-o-Y growth in Q3 FY18,on the back of higher international alumina prices partly offset by higher input costs Net profit of Rs.118 crore in Q3 FY18 v
Slide 22: Copper
Copper Revenue (Rs. crore) EBITDA (Rs. crore) 16,201 1210 13,206 28% 960 26% 5,000 5,097 5,701 467 421 330 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 EBITDA up by 28% Y-o-Y, on the back of supportive macros, higher volumes and higher by-product realization Exce
Slide 23: Novelis
Novelis Revenue (USD million) Adjusted EBITDA* (USD million) 896 8,548 794 33% 6,970 20% 13% 23% 2,794 3,085 2,313 302 305 255 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Y-o-Y Revenue up due to higher volumes and Aluminium LME EBITDA grew by 20% Y-o-Y primari
Slide 24: Hindalco: Sustainable Performance
Hindalco: Sustainable Performance Robust Operational Robust performance on the back of stable aluminium plant Performance operations along with supportive macros Optimized Finance Costs Major interest cost savings due to Prepayment and re-pricing of project loans Post De-leveraging, Hindalco i
Slide 25: Thank You
Thank You REGISTERED OFFICE Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East), Mumbai 400 093 Telephone- +91 22 6691 7000 Website: www.hindalco.com E mail: hindalco@adityabirla.com Corporate Identity No. L27020MH1958PLC011238 Excellence by Design
Slide 26: Appendix
Appendix Excellence by Design
Slide 27: Sales Volume
Sales Volume Aluminium Metal sales in all Copper sales (Kt) form (Kt) 919 953 5% 299 5% 261 4% 15% 310 329 325 97 93 102 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Q3 FY17 Q2 FY18 Q3 FY18 9M FY17 9M FY18 Excellence by Design 27