Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY2015 Earnings Presentation
23 slides from Hindalco Industries's earnings presentation, Feb 20, 2015
Slide 1: Hindalco Industries Ltd Q3 FY 2015
HINDALCO INDUSTRIES LTD Q3 FY 2015
Slide 2: Contents
Contents… Highlights and Financial Performance Review – Aluminium Business Review – Copper Business 2
Slide 3: World Economy: Divergence persists
World Economy: Divergence persists Financial markets showing increased volatility – Mixed signals: US recovering, While Europe staring at possible deflation… – ECB and BOJ announced QE that resulted in stock market rise – Weakness in Euro and commodities , Specter of Rising interest rates in the US
Slide 4: Al – Premium continues to provide support
Al – Premium continues to provide support LME prices (US$/t) 600 2300 US Mid-West US 500 Japan LME 3M AL Europe (Rotterdam Primary Al) Japan 2100 400 Europe 300 1900 200 1,796 174 1700 100 118 Regional Premium Sharp fall in Al LME 112 though are strong 0 Jan-12 Oct-12 Jul-13 Apr-14 1500 Apr-14 Jul-1
Slide 5: Q3 FY15: Highlights
Q3 FY15: Highlights… Aluminium and Alumina volumes jumped by over 37% Aluminium Strong Operational Performance (India) YOY EBIT jumped 127% Record shipments in seasonally weak quarter; Up 18% YOY Novelis Strong Operational Performance- strategic rolling expansions driving higher shipments,
Slide 6: Financial Highlights: Q3 FY15
Financial Highlights: Q3 FY15 (yoy, %) 18% Net Sales Driven by higher volumes and Al realizations, even as Cu LME fell 47% EBITDA Contributed by both Al and Cu segments 36% PBITDA Primarily led by operational improvements PBT 1% Robust result, despite over 171% increase in financing charges 8% Net P
Slide 7: Financial Performance – Standalone
Financial Performance – Standalone Q3 FY15 Change % Change (`) Cr Q3 FY15 Q3 FY14 Q2 FY15 YoY %QOQ Net Sales 8,603 7,273 18 8,554 1 Other Income 212 204 4 223 (5) PBITDA 1136 834 36 1,120 1 Depreciation (216) (200) 8 (196) 10 Interest (447) (165) 171 (386) 16 PBT before 472 469 2 539 (12) exceptiona
Slide 8: Aluminium Business
Aluminium Business 8
Slide 9: Al: Key Industry Drivers
Al: Key Industry Drivers LME and strong Premium boosted realisations Q3FY14 Q3FY15 LME ($/t) 1,767 1,968 INR-USD 62.05 61.93 Premium (MJP) 225 420 $/T Coal costs remained at elevated levels Smelter ramp up got affected due to coal availability on account of infrastructure bottlenecks
Slide 10: Al: Volume growth primarily from the new plants
Al: Volume growth primarily from the new plants (Figures in Kt = ‘000 t) Alumina Al Metal (incl. Utkal) 593 217 37% 38% 158 70 429 274 87 18 140 147 342 319 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Volume from Greenfield Projects 10
Slide 11: New Smelters: ramping Up
New Smelters: ramping Up Mahan Metal Production (kt) 48 43 37 29 18 7 Q2 Q3 Q4 Q1 Q2 Q3 FY FY14 FY14 FY14 FY15 FY15 15 Aditya Metal Production (kt) 22 6 Q2 FY15 Q3 FY15
Slide 12: Al: Financial Performance
Al: Financial Performance Q3 Performance 9M Performance Net Sales (` Crore) Net Sales (` Cr) 3,636 47% 2,471 9M 7025 42% FY14 9M 9963 Q3 FY14 Q3 FY15 FY15 EBIT (` Crore) 385 EBIT (` Cr) 170 9M 585 127% FY14 9M 1051 80% Q3 FY14 Q3 FY15 FY15 All round Improvement on the back of higher realisations and
Slide 13: Utkal: Efficiency gains kicking in
Utkal: Efficiency gains kicking in… Utkal Alumina Production* (‘000 t) Produced 293 KT calcined Alumina 274.4 240 Progressive reduction in Cash COP … in 208 lowest quartile … expected to improve further after commissioning of conveyor 147 belt 87 41 Reclaimer in Operation Q2 Q3 Q4 Q1 Q2 Q3 FY14
Slide 14: Novelis
Novelis ee NOVELIS
Slide 15: Novelis: Q3 FY15 – Highlights
Novelis: Q3 FY 15 – Highlights… Adjusted EBITDA $ 236 Million, up 16% YoY. Record third quarter Shipments at 757 kt, up 5% YoY, on the back of ongoing rolling expansions in Korea and Brazil. Expanding low cost recycling capabilities Higher shipments, improving EBIDTA 15
Slide 16: Novelis: Business Model
Novelis: Business Model Strong Global Presence Premium Product Portfolio 16
Slide 17: Copper Business
ADITYA BIRLA Copper Business 7 |
Slide 18: Cu: Robust Production Performance
Cu: Robust Production Performance Volumes in Kt = ’000 t Cathode CCR DAP 7% 6% 22% 95 82 89 34 36 67 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Strong Production growth 18
Slide 19: Cu: Favourable Industry Trends
Cu: Favourable Industry Trends… Q3 FY15 vs. Impact Q3FY14 (YoY) TCRC Higher LME ($/t) Lower Exch. Rate (`/$) Acid Price Higher DAP Realization Higher
Slide 20: Cu: Financial Performance
Cu: Financial Performance Q3 Performance 9M Performance Net Sales (` Crore) Net Sales (` Cr) 4,817 4,976 3% 9M 12427 FY14 9M 15213 22% Q3 FY14 Q3 FY15 FY15 EBIT (` Crore) 396 EBIT (` Cr) 300 9M 620 32% FY14 9M 1127 82% FY15 Q3 FY14 Q3 FY15 All round Improvement leveraging favourable industry trends…
Slide 21: Company Outlook
Company Outlook Greenfield projects are ramping well; Volumes and COP expected to be on an improving trajectory Aluminium sector environment hazy on account of China slow down and global growth uncertainty Copper business expected to continue to contribute significantly with favourable trend in TCRC
Slide 22: Thank you
Thank you REGISTERED OFFICE Century Bhavan, 3rd Floor, Dr. Annie Besant Road, Worli, Mumbai 400 030 Telephone- +91 22 6662 6666 Website www.hindalco.com E mail hindalco@adityabirla.com Corporate Identity No. L27020MH1958PLC011238
Slide 23: 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
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