Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY23 Earnings Presentation
38 slides from Hindalco Industries's earnings presentation, Aug 10, 2022
Slide 1: Hindalco Industries Limited Q1 FY23 Earnings Presentation
Hindalco Industries Limited Q1 FY23 Earnings Presentation 10th August, 2022
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 1. Sustainability Updates – Q1 FY23 2. Key Highlights – Q1 FY23 3. Economy & Industry Updates – Global & Domestic • Novelis 4. Business Performance : Operational & Financial - Novelis - Aluminium : Upstream Business - Aluminium : Downstream Business • Aluminium - Copper - Consolidat
Slide 4: Sustainability Updates
Sustainability Updates Hindalco Industries Limited 4
Slide 5: Hindalco: Focus on Conservation: Waste, Water, Biodiversity
Hindalco : Focus on Conservation: Waste, Water, Biodiversity Environment Total Bauxite Residue except from Utkal Refinery Zero waste to landfill by 2030 136.5% • 96% of total waste got recycled and reused (w/w of generation) in Q1 FY23 . • 136% of Bauxite Residue from three out of four Alumina Refin
Slide 6: Hindalco: Focus on Renewables & Safety
Hindalco : Focus on Renewables & Safety Renewables Aluminium Specific GHG Emissions (t CO2e/t) • FY25 Target – 300 MW (200 MW w/o Storage; 100 MW w/storage) ; Of this 100 MW already installed 19.8 19.7 19.6 till FY22 • Plan for FY23 - 109 MW 18.90 • 4 MW Power with Biomass boiler at Belagavi –Commis
Slide 7: Business Performance Key Highlights - Q1 FY23
Business Performance Key Highlights - Q1 FY23 Hindalco Industries Limited 7
Slide 8: Key Highlights: Q1 FY23
Key Highlights : Q1 FY23 ▪ Record quarterly financial performance supported by thrust on operational efficiencies, and robust performance of copper and downstream businesses, despite rising input costs and inflationary pressures ▪ Record Quarterly EBITDA at ₹8,640 crore (₹6,790 crore), up 27% YoY Co
Slide 9: Key Highlights: Q1 FY23 ...Contd.
Key Highlights : Q1 FY23 ...Contd. ▪ EBITDA at ₹3,272 crore (vs ₹2,317 crore) up 41% YoY on account of favorable macros, higher volumes and better operational efficiencies, offset by rising input costs ▪ EBITDA per ton at $1,274 in Q1FY23 (vs $966/ton); up 32% YoY. Aluminium ▪ EBITDA margin of 38% (
Slide 10: Economy & Industry Updates Global & Domestic
Economy & Industry Updates Global & Domestic Hindalco Industries Limited 10
Slide 11: Economy Updates
Economy Updates Global GDP Growth (% YoY) India GDP Growth (% YoY) 9.8 10.3 6.1 8.5 8.7 5.6 5.4 8.0 8.3 8.3 7.4 7.0 7.2 4.3 6.6 6.4 3.5 3.5 3.6 3.5 3.9 3.6 5.5 3.4 3.2 3.0 2.9 2.9 4.2 3.9 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22F CY23F -0.1 FY08 FY09 FY10 FY11
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) Production Consumption Metal Balance 3,280 1% 2% 0% -2% 2,882 33.6 34.1 16.9 17.3 34.1 34.3 17.7 17.3 (0.5) (0.2) (0.8) 0.0 2,762 2,648 2,400 19.4 19.7 19.8 19.5 2,096 0.2 0.0 0.2 (0.1) 0.
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand of Aluminium (in Kt) 908 939 1030 1038 1006 161 221 171 188 162 450 394 419 381 380 340 396 419 422 416 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23E Domestic Sales Scrap Imports Imports Ex Scrap ▪ In Q1 FY23, the domestic demand is likely to reach 1006 Kt (11%
Slide 14: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ Global FRP Demand is estimated to grow by ~6% in CY22 (vs CY21 growth of ~10%). 1. Beverage Cans ~5% 2. Automotive ~10% 3. Specialities ~4% 4. Aerospace ~30% CY22E Growth CY22E Growth CY22E Growth CY22E Growth • Stable, strong demand for • High levels
Slide 15: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) 1.6% 1.3% 12.2 12.4 12.0 12.1 -2.5% 1.6% 6.9 7.2 5.6 5.7 6.3 6.1 6.3 6.4 3.5 3.6 2.8 2.9 5.3 5.2 6.4 6.4 2.7 2.5 3.5 3.5 H1 CY21 H1 CY22 Q2 CY21 Q2 CY22 H1 CY21 H1 CY22 Q2 CY21 Q2 CY22 Production Consumpti
Slide 16: Domestic Copper Industry
Domestic Copper Industry Domestic Demand (kT) 192 172 173 160 162 33 33 99 118 43 38 44 139 140 117 124 93 74 Q4 FY20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Domestic Supply Import ▪ In Q1 FY23, market demand increased by ~47% YoY at 173 kT vs 118 KT in Q1 FY22 while Imports have declined by ~25%, Y
Slide 17: Business Performance: Q1 FY23
Business Performance : Q1 FY23 Hindalco Industries Limited 17
Slide 18: Novelis
Novelis Hindalco Industries Limited 18
Slide 19: Operational Performance – Novelis
Operational Performance – Novelis ▪ Diversified product portfolio and capitalizing on solid demand across end markets helped to deliver Overall Shipments (KT) a strong performance; Mitigating rising operating and energy costs through favorable pricing environment, hedging, and higher recycling benef
Slide 20: Financial Performance – Novelis
Financial Performance – Novelis Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 5.1 4.8 555 561 583 570 3.9 431 437 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 ▪ Net sales in Q1FY23 stands at $5.1 ▪ Record adjusted EBITDA at $561 million in ▪ Record Adjus
Slide 21: Aluminium: Upstream Performance
Aluminium : Upstream Performance Hindalco Industries Limited 21
Slide 22: Aluminium Upstream Business
Aluminium Upstream Business Production (Kt) ▪ Production up 3% YoY and Shipments Shipments (Kt)* 341 333 were up 2% YoY. 325 326 327 319 ▪ Revenue was up 41% YoY, with higher global prices of aluminium and higher volumes in Q1 FY23 vs Q1 FY22 ▪ EBITDA at ₹3,272 crore, up 41% YoY in Q1 FY22 Q4 FY22 Q
Slide 23: Aluminium: Downstream Performance
Aluminium : Downstream Performance Hindalco Industries Limited 23
Slide 24: Aluminium Downstream Business
Aluminium Downstream# Business Sales (Kt) ▪ Production in Q1 FY23 was lower by Production (Kt) 2% YoY and Sales were lower by 5% YoY. 93 86 92 84 82 78 ▪ Revenues were up 19% YoY, with higher global prices of aluminium in Q1 Q1 FY22 Q4 FY22 Q1 FY23 FY23 vs Q1 FY22 Q1 FY22 Q4 FY22 Q1 FY23 ▪ EBITDA at
Slide 25: Copper
Copper Hindalco Industries Limited 25
Slide 26: Copper Metal & VAP - Production and Sales in Kt
Copper Metal & VAP - Production and Sales in Kt Production : Copper Cathode (Kt) Production : CC Rod (Kt) ▪ Quarterly Cathode Production 94 92 was 92Kt whereas Copper Rods 79 69 Production was 79Kt in 63 44 Q1FY23. Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 ▪ Quarterly Metal sales in Sales : Copper M
Slide 27: Financial Performance – Copper Business
Financial Performance – Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 10,529 565 9,787 7,094 387 261 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 ▪ Revenues were up by 48% YoY in Q1 FY23, ▪ Record EBITDA at ₹565 crore in Q1 FY23 on account of higher global prices of copper compared to ₹261 crore i
Slide 28: Consolidated Financial Performance
Consolidated Financial Performance Hindalco Industries Limited 28
Slide 29: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 55,764 58,018 8,640 7,597 41,358 6,790 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore) 6,088 4,553 4,781 3,860 4,119 3,254 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY
Slide 30: Consolidated (Debt Position)
Consolidated (Debt Position) (₹ Crores) As on As on As on As on As on Particulars 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 Gross Debt 67,836 66,831 65,817 63,237 64,023 Cash & Cash Equivalents 15,923 18,820 22,084 24,141 21,830 Net Debt 51,913 48,011 43,733 39,096 42,193 TTM Adjusted EBITDA
Slide 31: Our Strategic Priorities
Our Strategic Priorities Robust Capital Structure Value Enhancing Growth ESG Commitments Portfolio Enrichment Our Approach Our Approach Our Approach Our Approach • Robust approach to • Strong focus on • Focus on ESG by • Advancing from Capital Allocation expanding capacities taking sustainability ma
Slide 32: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 33: Annexures
Annexures Hindalco Industries Limited 33
Slide 34: Consolidated – Key Financials
Consolidated – Key Financials Change QoQ Particulars (₹ Crore) Q1 FY22 Q4 FY22 Q1 FY23 YoY % Change % Revenue from Operations 41,358 55,764 58,018 40% 4% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 4,090 3,247 4,334 6% 33% Aluminium Upstream 2,317 3,742 3,272 41% -13%
Slide 35: Hindalco (India) Business – Key Financials
Hindalco (India) Business – Key Financials YOY QoQ Particulars (₹ Crore) Q1 FY22 Q4 FY22 Q1 FY23 Change % Change% Revenue from Operations 13,349 19,628 19,733 48% 1% EBITDA Aluminium - Upstream 2,325 3,738 3,272 41% -12% Aluminium - Downstream 39 140 158 305% 13% Copper 261 387 565 116% 46% Business
Slide 36: Aluminium (India) Business EBITDA and Sales Reconciliation
Aluminium (India) Business EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars Q1 FY22 Q4 FY22 Q1 FY23 EBITDA - Upstream 2,325 3,738 3,272 EBITDA - Downstream 39 140 158 Intersegment (Profit) /Loss Elimination (Net) (83) (19) (66) Metal Price Lag* 71 191 (43) Aluminium Business EBI
Slide 37: Production – Alumina
Production – Alumina Alumina* (KT) 866 878 718 Q1 FY22 Q4 FY22 Q1 FY23 ▪ Total Alumina production was up 22% YoY and 1% sequentially in Q1 FY23 ▪ Record Quarterly production at Utkal Alumina refinery at 586 Kt in Q1 FY23 *Hydrate as Alumina Hindalco Industries Limited 37
Slide 38: 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.