Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q2 FY22 Earnings Presentation
63 slides from Hindalco Industries's earnings presentation, Nov 12, 2021
Slide 1: Outcome of Board Meeting cover letter
12th November, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street Plot No. C/1, G Block Mumbai: 400 001 Bandra Kurla Complex Scrip Code: 500440 Bandra (East) Mumbai – 400 051 Scrip Code: HINDALCO Mr. Daniel Schammo Banque Intern
Slide 2: Enclosed documents list
Pursuant to Regulation 33 of Listing Regulations, enclosed are the following documents : 1. Press Release 2. Investor Presentation 3. Unaudited standalone and Consolidated Financial Results for the quarter and six months ended 30th September, 2021 and Limited Review Report The same is also available
Slide 3: Media Release: Hindalco Reports Consolidated Q2 FY22 Results
Media Release Hindalco Reports Consolidated Q2 FY22 Results Integrated portfolio strategy supported by stable operations and strong macros delivers another record-breaking performance Net Profit at all-time high of ₹3,417 crore, up 8.8x Key Highlights of Q2 FY22 ▪ All-time high Consolidated EBITDA a
Slide 4: Consolidated Financial Highlights for the Quarter ended September 30, 2021
Table: Consolidated Financial Highlights for the Quarter ended September 30, 2021 (₹ Crore) Particulars Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1 FY22 Revenue from Operations 31,237 41,358 47,665 56,520 89,023 Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,392 4,090 4,100 5,31
Slide 5: Business Segment Performance in Q2 FY22
Business Segment Performance in Q2 FY22 (vs Q2 FY21) Novelis Novelis recorded quarterly adjusted EBITDA of $553 million (vs $455 million), up 22% YoY, on the back of higher volumes, favourable product mix and metal benefits. Novelis achieved an Adjusted EBITDA per ton of $571 in Q2 FY22, compared to
Slide 6: Consolidated Results and Business Updates
Consolidated Results Hindalco reported another record quarterly financial performance in Q2 FY22 with EBITDA at ₹8,048 crore (vs ₹5,171 crore), up 56% YoY. The record results were driven by an outstanding performance by Novelis as well as India business, supported by a sharp recovery in all relevant
Slide 7: Copper facility and global footprint; disclaimer
Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, and a captive jetty. The copper smelter is among the world’s largest custom smelters at a single location. Hindalco’s global footprint spans 48 manufacturing units across 10 countries. Registered Offic
Slide 8: Hindalco Industries Limited Q2 FY22
Hindalco Industries Limited Q2 FY22 Earnings Presentation 12th November, 2021
Slide 9: 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 10: Table of Content
Table of Content 1. Sustainability Updates 2. Key Highlights – Q2 FY22 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial – Q2 FY22 - Novelis - Aluminium (India) - Copper • Aluminium - Consolidated (India) 5. Annexures : - Consolidated - Key
Slide 11: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 12: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Total Bauxite Residue Environment (% Recycled from 3/4 Refineries) • 84% of waste recycled and reused in H1 FY22 100% • 90% of Red Mud from three out of four Alumina Refiners reused majorly in 90% Waste Recycling Cement Industries in H1 FY
Slide 13: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewable Energy Aluminium Sp. Energy (%) (Indexed to FY12 Base) Total Potential – 246 MW; Target to reach 200 MW by FY25 FY22 (Target 100 MW) – 56 MW of Solar projects already completed 83.9% 83.2% Status of 42 MW under implementation in FY22 82.5% 82.7% • 35
Slide 14: Business Performance Key Highlights - Q2 FY22
Business Performance Key Highlights - Q2 FY22 Hindalco Industries Limited 7
Slide 15: Key Highlights: Q2 FY22
Key Highlights : Q2 FY22 ▪ Shipments of 968Kt (923Kt), up 5% YoY driven by strong demand across all business segments ▪ Adjusted EBITDA at $553 million ($455 million), up 22% YoY on the back of higher volumes and favorable metal cost ▪ Record Adjusted EBITDA per ton at $571 ($493/t) up 16% YoY ▪ Net
Slide 16: Key Highlights: Q2 FY22 Contd.
Key Highlights : Q2 FY22 ...Contd. ▪ Both Smelters ran optimally despite Q2 being a monsoon quarter ▪ Cathode production was at 100Kt (73Kt) up 38% YoY ; CC Rods production was maintained YoY at 65Kt ▪ Metal sales volume at 110Kt (75Kt) up 47% YoY; CC Rods sales at 70kt (64Kt), up 10% YoY with the m
Slide 17: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 18: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 5.6 5.9 5.4 9.8 10.3 9.5 4.3 8.5 8.0 8.3 8.3 3.9 7.4 7.0 3.5 3.5 3.6 3.5 3.4 3.6 6.6 6.4 3.0 2.9 5.5 3.9 4.2 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E CY08 CY07 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY1
Slide 19: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 4% 12% 5% 2,647 5% 2,400 48.0 50.6 16.3 17.0 46.0 51.5 16.4 17.2 2.0 (0.9) (0.0) (0.3) 2,096 1,916 27.1 29.0 30.1 1,690 1,704 27.8 1,497 9.3 9.6 10.2 1
Slide 20: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 574 747 1018 1073 908 943 195 237 188 172 122 442 415 375 116 262 380 272 363 382 422 340 396 186 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q2 FY22 the Domestic demand is likely to record 943 K
Slide 21: 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 Specialities CY21E Growth in Market Demand 3-6% CY21E Growth in Market Demand 20-25% CY21E Gr
Slide 22: Copper Industry (Global)
Copper Industry (Global) Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 5.7% 6.9% 17.3 18.2 17.7 16.6 7.0 7.6 6.4% 8.9 9.3 4.3% 5.9 6.2 5.8 6.1 10.3 10.6 2.5 2.6 3.3 7.7 8.4 3.3 3.4 3.6 2.5 2.8 Q1-Q3 Q1-Q3 Q3 Q3 Q1-Q3 Q1-Q3 Q3 Q3 CY20 CY21 CY20 CY21 CY20 CY21 CY20 CY21 Produ
Slide 23: Copper Industry (Domestic)
Copper Industry (Domestic) Domestic Demand (KT) 165 161 160 150 59 42 43 37 118 91 44 40 113 119 117 106 74 51 Q1FY21 Q2 FY21 Q3FY21 Q4FY21 Q1FY22 Q2 FY22 Domestic Supply Import ▪ Domestic market demand grew by 7% YoY at 160 KT in Q2 FY22 vs 150 KT in Q2 FY21. ▪ Refined Copper demand improved by 36%
Slide 24: Business Performance: Q2 FY22
Business Performance : Q2 FY22 Hindalco Industries Limited 17
Slide 25: Novelis
Novelis Hindalco Industries Limited 18
Slide 26: Operational Performance – Novelis
Operational Performance – Novelis ▪ Continued exceptional quarterly financial performance backed by favorable markets and Overall Shipments (KT) operational excellence in Q2 FY22 1,941 ▪ Beverage packaging and specialty product shipments benefited from continuing strong market 1,697 demand across al
Slide 27: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 8.0 1,108 570 571 571 493 417 5.4 708 4.1 555 553 3.9 455 3.0 Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 ▪ Net sales in Q2 FY22 stan
Slide 28: Aluminium (India)
Aluminium (India) Hindalco Industries Limited 21
Slide 29: 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 5% 170 YoY and 1% QoQ 641 598 ▪ Aluminum VAP production was 96 307 319 322 86 84 higher by 36% YoY in Q2 FY22 62 ▪ Alumina production in Q2 FY22 was a
Slide 30: Financial Performance - Aluminium (India)
Financial Performance - Aluminium (India) Revenue (₹ Crore) EBITDA (₹ Crore) 14,079 5,599 9,232 7,812 3,247 6,267 2,352 2,161 4,796 1,188 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1FY22 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1FY22 ▪ Aluminium revenues were up 63% YoY, with ▪ Record EBITDA at ₹3,247 crore, up 173% Yo
Slide 31: Copper
Copper Hindalco Industries Limited 24
Slide 32: 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 163 109 higher by 38% YoY in Q2 92 114 FY22 whereas Copper Rods 100 65 65 73 Production was maintained 63 44 YoY Q2FY21 Q1FY22 Q2FY22 H1 FY21 H1 FY22 Q2FY21 Q1FY22 Q2FY2
Slide 33: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 16,681 613 9,587 352 7,805 307 7,094 261 242 4,774 Q2FY21 Q1FY22 Q2FY22 H1 FY21 H1 FY22 Q2FY21 Q1FY22 Q2FY22 H1 FY21 H1 FY22 ▪ Revenues were up by 101% YoY in Q2 FY22, on ▪ EBITDA at ₹352 crore in Q2 FY22 compared to account
Slide 34: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 27
Slide 35: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 89,023 14,838 56,520 47,665 8,048 7,530 41,358 6,790 31,237 5,171 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1 FY22 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1 FY22 PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore) 9,595 6,
Slide 36: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 Gross Debt 78,266 71,996 65,994 67,836 66,831 Cash & Cash Equivalents 20,265 18,194 18,575 15,923 18,820 Net Debt 58,001 53,802 47,419 51,913 48,011 TTM Adjusted EBITDA
Slide 37: In Summary
In Summary Hindalco Industries Limited 30
Slide 38: 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 39: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 40: Annexures
Annexures Hindalco Industries Limited 33
Slide 41: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Change Particulars (₹ Crore) Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1 FY22 YoY % Change % YoY % Revenue from Operations 31,237 41,358 47,665 53% 15% 56,520 89,023 58% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 3,392 4,090 4,100 21% 0
Slide 42: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials (₹ Crore) YOY QoQ Particulars Q2 FY21 Q1 FY22 Q2 FY22 H1 FY21 H1 FY22 Change % Change % Change% Revenue from Operations 9,565 13,349 17,393 82% 30% 17,029 30,742 81% EBITDA Aluminium 1,188 2,352 3,247 173% 38% 2,161 5,599 159% Copper 242 261 352 45% 35% 307
Slide 43: Production – Alumina
Production – Alumina Alumina* (KT) 1,511 1,327 705 718 793 Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1FY22 ▪ Total Alumina production was up 13% YoY and 10% sequentially in Q2 FY22 ▪ Record Quarterly production at Utkal Alumina refinery at 504 Kt in Q2 FY22 *Hydrate as Alumina Hindalco Industries Limited 36
Slide 44: 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 45: Auditor's Limited Review Report – Standalone
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai - 400093 1. We have reviewed the standalone unaudited financial results of Hindalco Industries Limited (the “Company”) for the
Slide 46: Auditor's Limited 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”), its subs
Slide 47: Auditor's Review Report (page 2)
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 2 of 3 4. The Statement includes the results of the entities listed in Annexure -1. 5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consid
Slide 48: Auditor's Review Report (page 3)
Price Waterhouse & Co Chartered Accountants LLP The Board of Directors Hindalco Industries Limited Page 3 of 3 7. The consolidated unaudited financial results includes the interim financial information of ten subsidiaries which have not been reviewed by their auditors, whose interim financial inform
Slide 49: Annexure 1: Subsidiaries
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 1 of 3 Annexure 1 Sr. No. | Name Subsidiaries Utkal Alumina International Limited Minerals & Minerals Limited AV Minerals (Netherlands) N.V. Dahej Harbour & Infrastructure Limited Hindalco Almex Aerospace Limited East C
Slide 50: Annexure 1: Subsidiaries (continued)
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 2 of 3 Annexure 1 Sr. No. | Name 39 Novelis Europe Holdings Limited 40 Novelis UK Ltd. 41 Novelis Services Limited 42 Novelis Corporation 43 Novelis South America Holdings LLC 44 Novelis Holdings Inc. 45 Novelis Service
Slide 51: Annexure 1: Joint Ventures and Associates
Price Waterhouse & Co Chartered Accountants LLP Hindalco Industries Limited Page 3 of 3 Annexure 1 Sr. No. | Name Joint Ventures MNH Shakti Limited 2 Hydromine Global Minerals (GMBH) Limited Associates Aditya Birla Science & Technology Company Private Limited Aditya Birla Renewables Subsidiary Limit
Slide 52: Consolidated Unaudited Financial Results
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 Quarter
Slide 53: Segmentwise Consolidated Revenue, Results, Assets and Liabilities
Segmentwise Consolidated Revenue, Results, Assets and Liabilities for the Quarter and Six Months ended September 30, 2021 (Rin Crore! Quarter ended Six months ended Year ended Particulars 30/09/2021 | 30/06/2021 | 30/09/2020 | 30/09/2021 | 30/09/2020 | 31/03/2021 (Unaudited) | (Unaudited) | (Unaudit
Slide 54: Consolidated Assets and Liabilities
HINDALGO Notes: 1, Statement of Consolidated Assets and Liabilities are given below: (8 in Crore} 5 Asat Particulars 30/09/2021 | 31/03/2021 (Unaudited) | (Audited) ASSETS Non-Current Assets Property, Plant and Equipment (Including Right-of-Use Assets) 73,360 70,849 Capital Work-in-Progress 7,037 10
Slide 55: Consolidated Cash Flows
2. Statement of Consolidated Cash Flows are given below: (in Crore) Six months ended Particulars 30/09/2021 | 30/09/2020 (Unaudited) | (Unaudited) A. CASH FLOW FROM OPERATING ACTIVITIES Profit/ (Loss) Before Tax from Continuing Operations 9,595 1,822 Adjustment for: Finance Cost 2,111 1,974 Deprecia
Slide 56: Notes to consolidated financial results
Notes: 3. These statement of consolidated unaudited financial results (the “consolidated financial results”) of the Company and its subsidiaries (collectively “the Group”} and its interest in associates and joint ventures have been reviewed by the Audit Committee and approved by the Board of Directo
Slide 57: Additional disclosures per SEBI Listing Regulations
9. Additional disclosures as per Clause 52 (4) and 54 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015: |S. No, Particulars Quarter ended Six months ended Year ended 30/09/2021 (Unaudited) 30/06/2021 (Unaudited) 30/09/2020 (Unaudited) 30/0
Slide 58: Notes: Ryker Base acquisition
DITYA BIRL 11. On November 3, 2021 the Group has announced acquisition of 100% equity stake in Ryker Base Private Limited (100% subsidiary of Polycab India Limited) through its wholly owned subsidiary, Renuka Investments and Finance Limited, at a purchase consideration based on an Enterprise Value o
Slide 59: Standalone Unaudited Financial Results
HINDALCO INDUSTRIES LIMITED HINDALCG 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 Standalone Unaudited Financial Results for the
Slide 60: Standalone Assets and Liabilities
~HINDAL Notes: 1, Statement of Standalone Assets and Liabilities are given below: {Sin Crore) As at Particulars ‘30/09/2021 | 31/03/2021 (Unaudited) (Audited) Non-Current Assets Property, Plant and Equipment (including Right of Use Assets) 31,717 32,061 Capital Work In Progress 1,484 1,587 Investmen
Slide 61: Standalone Cash Flows
2. Statement of Standalone Cash Flows is given below: Rin Crore Six months ended Particulars 30/09/2021 30/09/2020 (Unaudited) (Unaudited) ICASH FLOW FROM OPERATING ACTIVITIES Profit before tax 3,842 252 690 786 Depreciation and amortization 866 852 Non-Cash Employee Share-Based payments 13 10 Impai
Slide 62: Notes to standalone financial results
ITY; A The statement of standalone unaudited financial 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 their meeting held on November 12, 2021. The Company has allotted 307,877 and 567,674
Slide 63: Notes to standalone results (continued)
ADITYA BI 8. Since the segment information as per Ind AS 108-Operating Segments is provided on the basis of consolidated financial results, the same is not provided separately for the standalone financial results. 9. Figures of previous periods have been regrouped/ reclassified wherever necessary to