Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY2015 Earnings Presentation
25 slides from Hindalco Industries's earnings presentation, Nov 14, 2014
Slide 1: Hindalco Industries Ltd Q2 FY 2015
HINDALCO INDUSTRIES LTD Q2 FY 2015
Slide 2: Contents
Contents Highlights Aluminium Business Review Copper Business Review 2
Slide 3: Aluminium Prices: Premium continues to provide support
Aluminium Prices: Premium continues to provide support Recent rise in aluminium prices further supported by rising regional premiums (US$/t) 2500 LME prices (US$/t) 600 Regional premium trends (US$/t) US Mid-West 513 US Japan 500 427 2300 Europe (Rotterdam Primary Al) Europe 420 Japan LME 3M AL 2,16
Slide 4: Copper TC/RC trend
Cu – TC/RC .. Supportive 30 C/lb Spot TC/RC trend 25 20 15 10 5 0 June'… June'… Feb'13 Feb'14 Aug'13 Aug'14 Q2'12 Q4'12 Apr'13 Apr'14 Dec'13 Oct'13 Favourable TC/RC Higher mine supply and lower Chinese demand expected to keep TC/Rc strong Source: Industry 4
Slide 5: Highlights: Q2 FY15
Highlights: Q2 FY15 (yoy %) 36% Driven by higher volumes and Net Sales realizations Contributed by both Al and Cu EBITDA 66% segments Led by operational improvements PBITDA 37% even as other income fell 20% Robust result, despite more than PBT (before 22% doubling of financing charges exceptional it
Slide 6: Financial Performance: Standalone
Financial Performance: Standalone Change % Change (`) Cr Q2 FY15 Q2 FY14 Q1 FY15 YoY %QOQ Net Sales 8,554 6,305 36 7,996 7 Other Income 223 280 (20) 216 3 PBITDA 1,120 820 36.6 965 16 Depreciation (196) (196) … (187) 5 Interest (386) (183) 111 (338) 14 PBT before 539 440 22 440 22 exceptional Except
Slide 7: Exceptional items eroded profitability in Q2 FY15
Exceptional items eroded profitability in Q2 FY15 Rs 431 Cr Adverse ` Crore impact of one timers Exchange Financing fluctuation on charges return of capital and write back 386 Depreciation 390 Diminution 196 563 in carrying 1120 value of investment in ABML Provision for 539 coal levy 258 107 PBITDA
Slide 8: EBITDA Trend
EBITDA Trend EBITDA (` Crore) 897 844 748 629 540 478 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Driven by larger Aluminium volumes and record performance by Copper business 8
Slide 9: Aluminium Business
ADITYA BIRLA HINDALCO Aluminium Business 9
Slide 10: Al: Key Industry Drivers
Al: Key Industry Drivers LME and Premium strong, Stronger Rupee negated some gains Q2FY15 Q2FY14 LME ($/t) 1,989 1,781 INRUSD 60.6 62.25 Premium (MJP) 404 252 $/T E auction Coal costs spiked up 10
Slide 11: Al: Volumes growth continued, despite some setbacks
Al: Volumes growth continued, despite some setbacks (Figures in Kt = ‘000 t) Alumina Al Metal (incl. Utkal) • Alumina: Higher volumes from 41% 531 34% 187 Utkal led to production gains 140 49 • Aluminium: Greenfield projects 376 240 led to volume growth despite set 41 backs – Hirakud: Output loss du
Slide 12: Al: Financial Performance
Al: Financial Performance Q2 Performance H1 Performance 42% Net Sales (` Cr) Net Sales (` Crore) 3,316 H1 4554 2,343 3,010 39% FY14 H1 6327 Q2 Q1 Q2 FY15 FY14 FY15 FY15 EBIT (` Crore) 104% EBIT (` Cr) 320 339 59% 166 H1 415 FY14 H1 659 Q2 Q1 Q2 FY15 FY14 FY15 FY15 12
Slide 13: Mahan: Scaling up
Mahan: Scaling up Mahan – Ramping Up Metal Production (kt) 43 37 29 18 7 Q2 Q3 Q4 Q1 Q2 FY14 FY14 FY14 FY15 FY15 13
Slide 14: Aditya Smelter
Aditya Smelter • Plant has been ramping up well after the July grid failure incident • Two CPP units in operation • Baked anode production facility for Hirakud smelter gearing up to start 14
Slide 15: Utkal Alumina
Utkal Alumina… Alumina Production (kt) 240 208 147 87 41 Q2 Q3 Q4 Q1 Q2 Utkal Alumina- Already in the FY14 FY14 FY14 FY15 FY15 lowest quartile on the cost curve 15
Slide 16: Novelis - Q2 FY15 Key Updates
Novelis - Q2 FY15 Key Updates Shipments up 7% YoY to 765 kilotonnes Sales up 17% to $2.8 billion Adjusted EBITDA up 1% to $230 million Net income of $38 million, up 65%; net income excluding certain items of $42 million, up 14% Free cash flow before CapEx $18 million Liquidity of $734 mi
Slide 17: Novelis - Robust Business Model
Novelis - Robust Business Model 17
Slide 18: Copper Business
Copper Business… 18
Slide 19: Cu: Mixed Industry Trends
Cu: Mixed Industry Trends… Q2 FY15 vs. Impact Q2 FY14 (YoY) TCRC Higher LME ($/t) Stable Exch. Rate (`/$) Unfavourable Acid Price Higher Imported coal Stable 19
Slide 20: Cu: Robust Production Performance
Cu: Robust Production Performance KT Cathode CCR DAP 25% 5% 13% 96 35.7 37.6 74 77 65 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 20
Slide 21: Cu: Strong Financial Performance
Cu: Strong Financial Performance Q2 Performance H1 Performance Net Sales (` Crore) 4,990 5,247 Net Sales (` Cr) 3,974 H1 7610 FY14 Q2 Q1 Q2 H1 10237 FY14 FY15 FY15 FY15 EBIT (` Crore) EBIT (` Cr) 414 239 317 73% H1 320 FY14 128% H1 730 Q2 Q1 Q2 FY15 FY14 FY15 FY15 Another quarter of record profitabi
Slide 22: ABML: Updates
ABML: Updates • Nifty mines operations re-started in mid-July after lifting of the prohibition notice by the Department of Mines and Petroleum (DMP) following the Sink hole incident. • Mine activity and processing plant being ramped up gradually; 241 kt of ore mined and 2.7 kt of copper in concentra
Slide 23: Company Outlook
Company Outlook Greenfield projects are stabilizing well; Volumes and COP expected to be on an improving trajectory Aluminium sector environment gradually improving Strong Pricing & Demand outlook Copper business expected to continue to contribute significantly with favourable trend in TCRC Novelis’
Slide 24: 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 24
Slide 25: 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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