Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q3 FY19 Earnings Presentation
30 slides from Hindalco Industries's earnings presentation, Feb 12, 2019
Slide 1: Hindalco Industries Limited Q3 FY19 Earnings Presentation
Hindalco Industries Limited Q3 FY19 Earnings Presentation 12th February, 2019
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 – Q3 FY19 04 • Aluminium Economy & Industry Updates – Global & Domestic 07 Result Highlights : Operational Performance – Q3 & 9M FY19 11 • Copper Result Highlights : Financial Performance – Q3 & 9M FY19 20 Appendix 27 • Novelis Inc. Hindalco Industries Limited EXCELLE
Slide 4: Key Highlights – Q3 FY19
Key Highlights – Q3 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 4
Slide 5: Key Highlights – Q3 FY19
Key Highlights – Q3 FY19 EBITDA at Rs. 1,926 crore vs Rs. 1,861 crore in Q3 FY18, up 4% reflecting strong performance, on account of supporting macros and better realization, despite rising input costs Hindalco Significant reduction in Interest Cost, 12% YoY, on account of prepayment of loan P
Slide 6: Key Highlights – Q3 FY19 ..Contd.
Key Highlights – Q3 FY19 ..Contd. EBITDA at Rs. 431 crore vs Rs. 421 crore in Q3 FY18, marginally up, on the back of better by-product realization and volume. Copper Cathode production at 105 Kt in Q3 FY19 vs 101 Kt in Q3 FY18 Copper CC Rod production, up 59% at 66 Kt vs. 41 Kt in Q3 last year
Slide 7: Economy & Industry : Global & Domestic
Economy & Industry : Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7
Slide 8: Economy Updates
Economy Updates A Weakening Global Expansion India - Fastest Growing Economy in the World 8.0 8.2 7.4 7.2 7.2 6.4 3.8 3.7 3.6 3.5 3.5 3.3 CY14 CY15 CY16 CY17 CY18 E CY19 F FY14 FY15 FY16 FY17 FY18 FY19 F • IMF marginally moderated the global growth due to uncertainties and softening of demand. Trade
Slide 9: Aluminium Industry
Aluminium Industry Global Scenario (MnT) Movement of LME (USD/t) 36 36 34 36 2,259 2,102 2,159 27 28 29 30 2,057 1,968 -2 -2.2 2 0.3 Production Demand Market Production Demand Market Balance Balance World ex. China China CY17 CY18 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Movement of Domestic Premium (USD/
Slide 10: Copper Industry
Copper Industry Global Market Scenario (MnT) LME Price of Copper (USD/t) 14 14 12 12 11 12 9 9 6,808 6,961 6,872 2.6 2.5 6,172 6,105 -2.4 -2.3 Production Demand Balance Production Demand Balance World Ex. China China CY17 CY18 Q4 CY17 Q1 CY18 Q2 CY18 Q3 CY18 Q4 CY18 Domestic Market Recorded Signific
Slide 11: Result Highlights : Operational Performance – Q3 FY19
Result Highlights : Operational Performance – Q3 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) 356 352 2,170 2,145 971 973 734 701 749 123 119 120 323 326 324 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M
Slide 14: Sales Volume – Aluminium Metal & VAP
Sales Volume – Aluminium Metal & VAP Aluminium Metal Sales in all forms (KT) Al. VAP Sales (incl. Wire Rod) - KT 953 949 342 328 325 326 323 120 113 115 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 • Aluminium VAP (including wire rods) sales in Q3 FY19 was 35% of t
Slide 15: Operational Performance : Copper
Operational Performance : Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 15
Slide 16: Production – Copper & VAP
Production – Copper & VAP Cathode (KT) CC Rod (KT) DAP (KT) 183 234 305 258 125 174 66 88 76 101 105 53 57 72 41 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 • Cathode production higher with optimal • CCR – 3 ramping up as pe
Slide 17: Sales Volume – Copper & VAP
Sales Volume – Copper & VAP Copper Metal Sales in All Forms (KT) CC Rods (KT) 299 173 259 119 102 99 55 57 79 41 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 • CC Rods sales volumes were higher by 40% in Q3 FY19 on account of ramp up CCR -3 vs. corresponding period
Slide 18: Operational Performance : Novelis Inc
Operational Performance : Novelis Inc Hindalco Industries Limited EXCELLENCE BY DESIGN 18
Slide 19: Operational Performance - Novelis Inc.
Operational Performance - Novelis Inc. Overall Shipments (KT) Record Q3 performance on the back of : o Solid operational performance 2,383 2,404 o Strong customer demand for sustainable, lightweight aluminum o Optimized product mix 796 807 800 o Continued cost focus Shipments increased 1% to 800
Slide 20: Result Highlights : Financial Performance – Q3 & 9M FY19
Result Highlights : Financial Performance – Q3 & 9M FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 20
Slide 21: Hindalco Standalone plus Utkal Alumina
Hindalco Standalone plus Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 33,441 5,799 31,771 5,347 11,044 10,833 11,938 1,861 1,922 1,926 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore) 2,919
Slide 22: Hindalco Aluminium plus Utkal Alumina
Hindalco Aluminium plus Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 17,822 4,159 15,580 3,525 5,346 6,135 6,018 1,349 1,188 1,286 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 • EBITDA up 8% YoY in Q3 FY18 on account of better macros and stable operations,
Slide 23: Copper Business
Copper Business Revenue (Rs. Crore) EBITDA (Rs. Crore) 16,201 15,640 1,210 1,154 5,701 5,925 421 388 431 4,710 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 • Revenues were higher on account of better by-product realization and volume • EBITDA was marginally higher
Slide 24: Novelis Inc.
Novelis Inc. Revenue (USD Billion) Adjusted EBITDA (USD Million) Adjusted EBITDA (USD/tonne) 9.2 8.4 440 421 1,011 403 896 383 376 2.9 3.1 3.0 305 355 322 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 • Revenues at US$ 3.0 bil
Slide 25: In Summary
In Summary Sustainable Business Performance Strengthened Balance Sheet Robust quarterly performance, despite • Consolidated Net Debt to EBITDA at headwinds in business environment 2.65x at the end of December 2018. Profitable growth, aided by significant • Deleveraging continues at Hindalco – re
Slide 26: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 27: Appendix
Appendix Hindalco Industries Limited EXCELLENCE BY DESIGN 27
Slide 28: Financial Key Figures – Hindalco Standalone plus Utkal Alumina
Financial Key Figures – Hindalco Standalone plus Utkal Alumina (Rs. Crore) YOY YOY Particulars Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Change % Change % Revenue from Operations 11,044 10,833 11,938 8% 31,771 33,441 5% Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium (includes Utkal)
Slide 29: Financial Key Figures – Hindalco Standalone
Financial Key Figures – Hindalco Standalone (Rs. Crore) YOY YOY Particulars Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Change % Change % Revenue from Operations 11,028 10,833 11,938 8% 31,754 33,364 5% Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium 945 744 515 -46% 2,788 2,270 -19% Co
Slide 30: For Further Queries Please Contact: Subir Sen, Investor Relations
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