Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY22 Earnings Presentation
53 slides from Hindalco Industries's earnings presentation, Aug 6, 2021
Slide 1: Media Release: Hindalco Reports Stellar Consolidated Q1 FY22 Results
Media Release HINDALCO REPORTS STELLAR CONSOLIDATED Q1 FY22 RESULTS Novelis and Aluminium India Business drive highest-ever quarterly net profits Key Highlights of Q1 FY22 ▪ All-time high Consolidated EBITDA at ₹6,790 crore, up 188% YoY and 16% QoQ ▪ All-time high Consolidated PAT at ₹2,787 crore, u
Slide 2: Consolidated Financial Highlights for the Quarter ended June 30, 2021
Table: Consolidated Financial Highlights for the Quarter ended June 30, 2021 (₹ Crore) Particulars Q1 FY21 Q4 FY21 Q1 FY22 Revenue from Operations 25,283 40,507 41,358 Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 1,919 3,705 4,090 Aluminium 973 1,820 2,352 Copper 66 32
Slide 3: Business Segment Performance in Q1 FY22
Business Segment Performance in Q1 FY22 (vs Q1 FY21) Novelis Novelis recorded its best-ever quarterly Adjusted EBITDA of $555 million (vs $253 million), up 119% YoY, on the back of higher volumes, favourable product mix and metal benefits, and a $47 million gain related to a favourable decision in a
Slide 4: Consolidated Results
Consolidated Results Hindalco reported another best-ever quarterly financial performance in Q1 FY22 with EBITDA at ₹6,790 crore (vs ₹2,359 crore), up 188% YoY. The record results were driven by an outstanding performance by Novelis as well as India business, supported by a sharp recovery in all rele
Slide 5: Credit Rating Upgrades and About Hindalco
• Credit Rating upgrade by CRISIL from ‘AA’ to ‘AA+’ with ‘Stable’ outlook, in July 2021, for bonds of Hindalco. • CARE Ratings affirmed ‘AA+’ Credit Rating with Outlook upgraded from ‘Negative’ to ‘Stable’ in June 2021 for long-term loans and bonds of Hindalco. • Hindalco received highest Short-Ter
Slide 6: Hindalco Industries Limited Q1 FY22
Hindalco Industries Limited Q1 FY22 Earnings Presentation 06th August, 2021
Slide 7: 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 8: Table of Content
Table of Content 1. Hindalco Sustainability Updates 2. Key Highlights – Q1 FY22 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial – Q1 FY22 - Novelis - Aluminium (India) - Copper • Aluminium - Consolidated (India) 5. Annexures : - Consolida
Slide 9: Hindalco (India) Sustainability Updates
Hindalco (India) Sustainability Updates Hindalco Industries Limited 4
Slide 10: Focus on Conservation: Waste, Water, Biodiversity
Focus on Conservation: Waste, Water, Biodiversity Environment Bauxite Residue (% Recycled) • 82.7% of waste recycled and reused in Q1 FY22 62.3% • 100% of Red Mud from three out of four Alumina Refiners reused in Cement 53.2% Waste Recycling Industries. Utkal refinery is conducting pilot projects fo
Slide 11: Focus on Renewables & Safety
Focus on Renewables & Safety Renewable Energy Aluminium Sp. Energy (%) (Indexed to FY15 Base) Onsite Renewable (Primarily solar) Renewables (MW) 86.1% • Potential ̴ 246 MW. 250 • FY22 - 52 MW implementation across 5 locations are on 200 85.4% track (49 MW already implemented) 200 170 84.7% 84.6% • F
Slide 12: Business Performance Key Highlights - Q1 FY22
Business Performance Key Highlights - Q1 FY22 Hindalco Industries Limited 7
Slide 13: Key Highlights: Q1 FY22
Key Highlights : Q1 FY22 ▪ Shipments of 973Kt (774Kt), up 26% YoY driven by strong demand across all business segments ▪ Record adjusted EBITDA at $555 million ($253 million), up 119% YoY on the back of higher volumes and favorable product mix, favorable metal benefits and a $47 million gain related
Slide 14: Key Highlights: Q1 FY22 ...Contd.
Key Highlights : Q1 FY22 ...Contd. ▪ Successful ramp-up of Smelter-3 post shutdown in Q1 FY22. ▪ Cathode production was at 63Kt (41Kt) up 52% YoY ; CC Rods production was at 44Kt (26Kt) up 67% YoY Copper ▪ Metal sales volumes at 80Kt (58Kt) up 36% YoY; CC Rods sales at 46 kt (31Kt), up 50% YoY with
Slide 15: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 16: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.6 6.0 5.4 9.8 10.3 9.5 4.3 8.5 8.3 8.3 3.9 7.4 8.0 3.5 3.5 3.6 3.5 3.4 3.6 7.0 3.0 6.6 6.4 2.9 5.5 3.9 4.2 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21E FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY1
Slide 17: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Mt) Global Price of Aluminium (Cash -$/T) Production Consumption Metal Balance 6% 7% 14% 12% 2,399 31.6 33.7 15.8 16.9 29.6 33.8 15.6 17.5 2.1 (0.1) 0.1 (0.6) 2,096 1,916 17.7 19.4 19.7 1,690 1,704 17.6 0.1 1,497 8.9 9.7 10.4 10.6 13.9 14.3 1
Slide 18: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 574 747 1018 1073 884 195 237 173 122 442 415 116 262 371 272 363 382 422 340 186 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q1 FY22, domestic demand is estimated to record 884 Kt (54% growth YoY) due t
Slide 19: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ The global FRP Demand is estimated to grow by ~9% in CY21 (vs CY20 contraction of ~4%) on account of demand recovery and base effect. Beverage Cans Automotive Aerospace CY21E Growth in Market Demand 3-6% CY21E Growth in Market Demand 20-25% CY21E Growt
Slide 20: Copper Industry (Global)
Copper Industry (Global) Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 5% 9% 11.5 12.0 11.7 10.7 4.6 5.0 6% 6.0 5% 5.5 6.1 5.8 6.1 5.7 2.3 2.5 3.3 3.5 6.9 7.0 5.2 5.7 3.4 3.6 2.8 2.3 H1 CY20 H1CY21 Q2 CY20 Q2 CY21 H1 CY20 H1CY21 Q2 CY20 Q2 CY21 Production Consumption World
Slide 21: Copper Industry (Domestic)
Copper Industry (Domestic) Domestic Demand (KT) 165 161 150 59 42 37 118 91 44 40 113 106 119 74 51 Q1FY21 Q2 FY21 Q3FY21 Q4FY21 Q1FY22 Domestic Supply Import Q1 FY22 vs Q1 FY21 ▪ Domestic market demand grew by 30% YoY at 118 KT in Q1 FY22 vs 91 KT in Q1 FY21. In Q1FY22. ▪ Domestic refined copper de
Slide 22: Business Performance: Q1 FY22
Business Performance : Q1 FY22 Hindalco Industries Limited 17
Slide 23: Novelis
Novelis Hindalco Industries Limited 18
Slide 24: Operational Performance – Novelis
Operational Performance – Novelis ▪ Record quarterly financial performance backed by favorable markets and operational Overall Shipments (KT) excellence in Q1 FY22 983 973 ▪ Shipments at 973 Kt in Q1FY22 up 26% YoY 774 ▪ Automotive shipments are more than double the prior year despite some headwinds
Slide 25: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 3.9 555 570 3.6 505 514 2.4 327 253 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 ▪ Net sales in Q1 FY22 stands at $3.9 ▪ All time high adjusted EBITDA at $555 ▪ Adjusted EBITDA
Slide 26: Aluminium (India)
Aluminium (India) Hindalco Industries Limited 21
Slide 27: Aluminium Metal & VAP - Production and Sales in Kt
Aluminium Metal & VAP - Production and Sales in Kt Production : Aluminium Metal (Kt) Production : Aluminium VAP# (Kt) ▪ Aluminium Metal Production up 9% YoY and 1% QoQ 89 291 316 319 86 ▪ Aluminum VAP production was higher by 150% YoY in Q1 FY22 34 ▪ Alumina production in Q1 FY22 was at 718 Kt up 15
Slide 28: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 6,267 2,352 5,969 1,820 4,436 973 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 ▪ Aluminium revenues were up 41% YoY, with ▪ Record EBITDA at ₹2,352 crore, up 142% YoY in Q1 FY22 higher global prices of aluminium in Q1 FY
Slide 29: Copper
Copper Hindalco Industries Limited 24
Slide 30: Copper Metal & VAP - Production and Sales in Kt
Copper Metal & VAP - Production and Sales in Kt Production : Copper Cathode (Kt) Production : CC Rod (Kt) ▪ Cathode Production was 76 low due to maintenance 97 shutdown in Smelter-3 63 44 41 26 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Sales : CC Rods (Kt) ▪ Metal and CC Rod sales were Sales : Coppe
Slide 31: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 8,508 7,094 322 261 3,031 66 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 ▪ Revenues were up by 134% YoY in Q1 FY22, on ▪ EBITDA at ₹261 crore in Q1 FY22 compared to ₹66 account of higher global prices of copper compared crore i
Slide 32: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 27
Slide 33: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 40,507 41,358 6,790 5,845 25,283 2,359 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore) 4,553 3,254 3,254 1,945 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q
Slide 34: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 Gross Debt 84,181 78,266 71,996 65,994 67,836 Cash & Cash Equivalents 21,879 20,265 18,194 18,575 15,923 Net Debt 62,302 58,001 53,802 47,419 51,913 TTM Adjusted EBITDA
Slide 35: In Summary
In Summary Hindalco Industries Limited 30
Slide 36: Key Focus Areas
Key Focus Areas Product Mix Diversification Profitable Growth / Enhancement Profitable growth through investments in recycling, debottlenecking and organic Enrich product mix through increasing the share expansions in more stable and predictable of high-end value-added products in the overall downst
Slide 37: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 38: Annexures
Annexures Hindalco Industries Limited 33
Slide 39: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Particulars (₹ Crore) Q1 FY21 Q4 FY21 Q1 FY22 YoY % Change % Revenue from Operations 25,283 40,507 41,358 64% 2% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 1,919 3,705 4,090 113% 10% Aluminium 973 1,820 2,352 142% 29% Copper 6
Slide 40: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ Particulars Q1 FY21 Q4 FY21 Q1 FY22 Change % Change% Revenue from Operations 7,464 14,471 13,349 79% -8% EBITDA Aluminium 973 1,820 2,352 142% 29% Copper 66 322 261 295% -19% Other Segments 1 7 1 0% -86% Business Segment EBITDA 1,040 2,149
Slide 41: Production – Alumina
Production – Alumina Alumina* (KT) 697 718 623 Q1 FY21 Q4 FY21 Q1 FY22 ▪ Total Alumina production was up 15% YoY and 3% sequentially in Q1 FY22 ▪ Production at Utkal Alumina refinery was 425 Kt in Q1 FY22 after the ramp up post maintenance shutdown taken in Q4 FY21 *Hydrate as Alumina Hindalco Indus
Slide 42: For Further Queries Please Contact
For Further 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.
Slide 43: Auditor Review Report – Standalone
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, 1%t Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai-400093 1, We have reviewed the unaudited financial results of Hindalco Industries Limited (the “Company”) for the quarter ended
Slide 44: Auditor Review Report – Consolidated
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, ist Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai-400093 1. We have reviewed the consolidated unaudited financial results of Hindalco Industries Limited (the “Parent Company”),
Slide 45: Auditor Review Report (Page 2)
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 of 2 6. We did not review the interim financial information of two subsidiaries and consolidated interim financial information of one subsidiary included in the consolidated unaudited financial
Slide 46: Annexure: List of Subsidiaries
Price Waterhouse & Co Chartered Accountants LLP Annexure 1 Sr. No. Name Subsidiaries 1 Utkal Alumina International Limited 2 Minerals & Minerals Limited 3 AV Minerals (Netherlands) N.V. 4 Dahej Harbour & Infrastructure Limited 5 Hindalco Almex Aerospace imited 6 East Coast Bauxite Mining Company 7 R
Slide 47: Annexure: List of Subsidiaries (continued)
Price Waterhouse & Co Chartered Accountants LLP Sr. No. Name 44 Novelis Holdings Inc. 45 Novelis Services (North America) Inc. 46 Novelis Global Employment Organization, Inc. 47 Novelis Services (Europe) Inc. 48 Saras Micro Devices, Inc. 49 Novelis Vietnam Company Limited 50 Aleris Asia Pacific Inte
Slide 48: Statement of Consolidated Unaudited Financial Results
Dr HI HINDALCO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093 Website: www.hindalco.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958PLC011238 Statement of Consolidated Unaudited Financial Results for the Q
Slide 49: Segmentwise Consolidated Revenue, Results, Assets and Liabilities
AD A Segmentwise Consolidated Revenue, Results, Assets and Liabilities for the Quarter ended June 30, 2021 (%in Crore}} Quarter ended Year ended Particulars 30/06/2021 | 31/03/2021 | 30/06/2020 | 31/03/2021 (Unaudited) | (Unaudited) | (Unaudited) (Audited) 1. Segment Revenue {a} Novelis 28,428) 26,5
Slide 50: Notes to Consolidated Results
AD! IRLA Notes: 1. These consolidated financial results of the Group have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in their meeting held on August 6, 2021. During the quarter, the Company has allotted 259,797 (includes 43,435 shares allotted through
Slide 51: Notes: Segment Results Reclassification
10 Due to above, segment results for “Aluminium Segment” and “Capper Segment” have increased with corresponding change In “Unailocable income/ (Expense) (Net)” as under: "Crore Particulars Qi Fy22 Q4 Fv2i Qi Fr2i Fv2i Aluminium Segment 12 210 117 586 Copper Segment 39 53 29 153 Unallocable income/ (
Slide 52: Statement of Standalone Unaudited Financial Results
HINDALCO INDUSTRIES LIMITED Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093 Website: www.hindaico.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958PLC011238 Statement of Standalone Unaudited Financial Results for the Quarter e
Slide 53: Notes to Standalone Results
The standalone financial results of the Company have been reviewed by the Audit Committee and approved by the Board of Directors of the Company In thelr meeting held on August 6, 2021. . During the quarter, the Company has allotted 259,797 (includes 43,435 shares allotted through Hindalco Employee W