Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY20 Earnings Presentation
30 slides from Hindalco Industries's earnings presentation, Aug 9, 2019
Slide 1: Hindalco Industries Limited Q1 FY20 Earnings Presentation
Hindalco Industries Limited Q1 FY20 Earnings Presentation 09th August, 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 – Q1 FY20 04 • Novelis Economy & Industry Updates – Global & Domestic 07 Business Performance Highlights : Operational & Financial – Q1 FY20 12 • Aluminium Appendix 27 (India) • Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 3
Slide 4: Key Highlights – Q1 FY20
Key Highlights – Q1 FY20 Hindalco Industries Limited EXCELLENCE BY DESIGN 4
Slide 5: Key Highlights: Q1 FY20 vs. Q1 FY19
Key Highlights : Q1 FY20 vs. Q1 FY19 Record Adjusted EBITDA at US$ 372 million, up 11% YoY Record Adjusted EBITDA per ton of US $448, up 7% YoY Record Net Income (excluding special items#) at US$ 145 million (vs US$ 115 million in Q1 FY19) up 26% YoY Novelis* Total shipments stood at 830 Kt,
Slide 6: Key Highlights: Q1 FY20 vs. Q1 FY19 ..Contd.
Key Highlights : Q1 FY20 vs. Q1 FY19 ..Contd. Domestic Copper market grew 9% YoY Highest ever quarterly VAP production (CC Rod) at 66 Kt, up 2% (vs. 65 Kt in Q1 FY19) Copper VAP Sales (CC Rods) were up by 3% at 63kt (vs. 61 Kt in Q1 FY19) Smooth ramp-up of smelter-3 post planned maintenance
Slide 7: Economy & Industry: Global & Domestic
Economy & Industry : Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7
Slide 8: Economy Updates
Economy Updates Global Economic Activities Expected to Remain Sluggish in 2019 India GDP Growth Witnessed Moderation 8.1 8.0 4.8 4.7 7.0 4.5 6.6 4.1 5.8 3.8 3.6 3.5 3.2 2.4 2.2 1.9 1.7 2017 2018 2019 F 2020 F Q4 FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 World Output Advanced Economies Emerging Market and Dev
Slide 9: Aluminium Industry
Aluminium Industry Global Demand & Supply Balance (Mt) Domestic Demand (Kt) 63 63 64 65 65 66 931 1016 998 555 552 585 0.1 376 463 413 -1.5 -1.3 Q1FY19 Q4 FY19 Q1 FY20 2017 2018 2019 World production World consumption Market Balance Domestic Sales Imports inc Scrap Total Demand The US-China trade
Slide 10: FRP Industry
FRP Industry In CY19, the Global FRP demand continued to grow at a steady pace of around 3% In CY19, Global Can Stock market has started to show growth with demand from continuous shift from glass to the Cans, new can sizes, new end-use segments like energy drinks, sparkling water & crafted beer
Slide 11: Copper Industry
Copper Industry Global Demand & Supply Balance (in Mt) Strong Domestic Demand (Kt) 23.0 22.8 23.6 23.6 23.7 23.8 194 188 173 71 73 79 0.2 0.1 102 121 109 -0.1 Q1 FY19 Q4 FY19 Q1 FY20 2017 2018 2019 Refined copper production Refined copper consumption Market balance Domestic Sales Imports Total Glo
Slide 12: Business Performance Highlights: Q1 FY20
Business Performance Highlights : Q1 FY20 Hindalco Industries Limited EXCELLENCE BY DESIGN 12
Slide 13: Novelis
Novelis Hindalco Industries Limited EXCELLENCE BY DESIGN 13
Slide 14: Operational Performance - Novelis
Operational Performance - Novelis Overall Shipments (KT) Strong operating performance with favorable market conditions driving financial growth Global demand for Aluminium Flat Rolled Product (FRP) was strong with 870 830 797 overall shipments up 4% YoY : Organic Expansion projects in US, Chin
Slide 15: Financial Performance - Novelis
Financial Performance - Novelis Revenue (USD Billion) Adjusted EBITDA (USD Million) Adjusted EBITDA (USD/tonne) 357 372 448 3.1 3.1 334 419 410 2.9 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Revenues at US$ 2.9 billion, down Record quarterly adjusted EBITDA up Reco
Slide 16: Aluminium Business (Hindalco Aluminium including Utkal)
Aluminium Business (Hindalco Aluminium including Utkal) Hindalco Industries Limited EXCELLENCE BY DESIGN 16
Slide 17: Production – Alumina, Aluminium Metal & VAP
Production – Alumina, Aluminium Metal & VAP Alumina* (Inc. Utkal Alumina) KT Aluminium Metal (KT) Aluminium VAP# (KT) 78 82 79 749 323 321 326 695 686 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Impact of Muri plant closure partially Stable aluminium metal production
Slide 18: Sales Volume – Aluminium Metal & VAP
Sales Volume – Aluminium Metal & VAP Aluminium Metal Sales in all forms (KT) Aluminium VAP# (KT) 325 320 83 300 77 68 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Aluminium Metal Sales higher by 7% YoY Aluminium VAP shipments has grown 13% YoY Aluminium VAP was 24% of total metal sales (Vs
Slide 19: Financial Performance - Hindalco Aluminium including Utkal Alumina
Financial Performance - Hindalco Aluminium including Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 5,668 5,953 1,532 5,472 1,057 889 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Aluminium revenue down due to lower EBITDA margins at 16%, one of the best realisations amongst global peers
Slide 20: Copper Business
Copper Business Hindalco Industries Limited EXCELLENCE BY DESIGN 20
Slide 21: Production – Copper & VAP
Production – Copper & VAP Cathode (KT) CC Rod (KT) DAP (KT) 65 66 62 70 69 89 81 76 36 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Cathode production impacted due to Highest ever CC Rod production in DAP production down due to the planned maintenance shutdown in Q1
Slide 22: Sales Volume – Copper & VAP
Sales Volume – Copper & VAP Copper Metal Sales in All Forms (KT) CC Rods (KT) 100 70 61 63 82 82 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Copper Continuous Cast Rods sales volumes were higher by 3% YoY Hindalco Industries Limited EXCELLENCE BY DESIGN 22
Slide 23: Copper Business – Financial Performance
Copper Business – Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) 6,513 347 325 5,012 4,593 267 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Revenues were marginally lower YoY on EBITDA was down YoY due to lower by- account of lower realizations and impact of product volumes and
Slide 24: Quarterly Financial Trend - Consolidated
Quarterly Financial Trend - Consolidated Revenue (Rs. Crore) EBITDA (Rs. Crore) 33,746 4,334 31,078 29,972 3,938 3,769 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore) 2,275 1,475 1,725 1,578 1,178 1,063 Q1 FY19 Q4 FY19 Q1 FY20 Q
Slide 25: To Summarise
To Summarise Balanced Product Portfolio (LME v/s Non LME linked) 79% EBITDA (Rs. 2,995 crore) of the total business is non- LME linked in Q1 FY20 Strong Balance Sheet Consolidated Net Debt A Sustainable Resource Security to EBITDA at 2.69x as on Business Model Fully integrated aluminium busine
Slide 26: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 27: Appendix
Appendix Hindalco Industries Limited EXCELLENCE BY DESIGN 27
Slide 28: Quarterly Financials – Hindalco Consolidated
Quarterly Financials – Hindalco Consolidated (Rs. Crore) YOY Particulars Q1 FY19 Q4 FY19 Q1 FY20 Change % Revenue from Operations 31,078 33,746 29,972 -4% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Aluminium (including Utkal) 1,532 1,057 889 -42% Copper 347 325 267 -23% Novel
Slide 29: Financial Key Figures – Hindalco Standalone including Utkal Alumina
Financial Key Figures – Hindalco Standalone including Utkal Alumina (Rs. Crore) YOY Particulars Q1 FY19 Q4 FY19 Q1 FY20 Change % Revenue from Operations 10,667 12,455 10,055 -6% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Aluminium (including Utkal) 1,532 1,057 889 -42% Copper
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