Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY15 Earnings Presentation
23 slides from Hindalco Industries's earnings presentation, Aug 14, 2014
Slide 1: Investor Presentation Q1 FY15 Performance and Financial Review
INVESTOR PRESENTATION Q1 FY15 Performance and Financial Review Aug 14, 2014
Slide 2: Contents
Contents Highlights Aluminium Business Review Copper Business Review 2
Slide 3: Highlights
HIGHLIGHTS 33
Slide 4: Aluminium Industry: on recovery path
Aluminium Industry: on recovery path.. Improving LME Physical premium remained strong Globally…. Outside China, around 3 Mn tonnes capacity closure as cost inflation makes them unviable… Global Demand continues to remain strong… Indian Demand expected to recover….
Slide 5: Strong Realisations
STRONG REALISATIONS 2,200 LME – Al Two pillars of recent uptrend 2,000 ($/t) 1,945 1,800 Improving fundamentals 1,600 1,400 Gradual, yet continued recovery 1,200 underway in most economies 1,000 Mar-13 May-13 Nov-13 Mar-14 May-14 Jul-14 Jul-13 Sep-13 Jan-13 Jan-14 Market balance negative outsi
Slide 6: Highlights: Q1 FY15
HIGHLIGHTS: Q1 FY15 (yoy, %) Al metal sales up 37% as new Net Sales 37% factories ramped up, Cu volumes increased EBITDA 56% Strong gains in both Aluminium and Copper segments High base of other income – one-off PBITDA 6% item of `103 crore in Q1 FY14; without this PBITDA up 20% 31% Sharp increase i
Slide 7: Financial Performance: Standalone
Financial Performance: Standalone Change % Change (`) Cr Q1 FY15 Q1 FY14 Q4 FY14 YoY %QOQ Net Sales 7,996 5,838 37.0 8,435 (5.2) EBITDA 748 478 56.4 844 (11.3) Other Income 216 428 (49.5) 212 (1.8) PBITDA 965 906 6.4 1,057 (8.7) Depreciation (187) (183) 2.2 (244) (23.3) Interest (338) (149) 127.0 (2
Slide 8: Aluminium Business
ALUMINIUM BUSINESS Aditya Aluminium, Lapanga, Odisha 8
Slide 9: Al: Volumes Improved Across Business
AL: VOLUMES IMPROVED ACROSS BUSINESS (FIGURES IN KT = ‘000 T) Alumina Al Metal FRP Extrusions (incl. Utkal) 43% 499 37% 190 12% 6% 139 45 208 63.2 56.4 9.2 9.7 349 137 145 291 Q1 FY14 Q1 FY15 Q1 FY14 Q1 FY15 Q1 FY14 Q1 FY15 Q1 FY14 Q1 FY15 Volume from Greenfield Projects Alumina production suffere
Slide 10: Al: Key Industry Drivers
Al: Key Industry Drivers LME fell but impact offset by higher premium & lower Rupee Q1FY14 Q1FY15 LME ($/t) 1,834 1,798 INRUSD 55.94 59.35 Premium 247 367 Energy/carbon cost pressures have continued
Slide 11: Al: Financial Performance
AL: FINANCIAL PERFORMANCE YOY Sales zoomed up on YOY ..Though profitability the back of higher volumes improved , ramp up related & realization costs.. affected margins EBIT (` crore) Net Sales (` crore) 3025 YOY 3011 350 320 Sales EBIT 2211 249 36% 28% Q1 FY14 Q4 FY 14 Q1 FY15 Q1 FY14 Q4 FY 14 Q1 F
Slide 12: Utkal: Gaining momentum
Utkal: Gaining momentum Alumina Production* (kt) 199 147 87 41 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 12
Slide 13: Novelis: Highlights
NOVELIS : HIGHLIGHTS Leader in Auto & Can FRP 13
Slide 14: Novelis: Strategic Goals on track
Novelis: Strategic Goals on track … Invested $2 Bn in last Auto Share in Product Sustainability : Goal of 3 years to solidify Portfolio to lead the 80% recycling content Global Leadership Light-weighting trend by 2020 Auto Share in Portfolio (%) FY10 4% FY14 9% FY17 (P) 20% 570 kt of high quality
Slide 15: Novelis: Q1 FY Highlights
Novelis: Q1 FY 15 Highlights.. Q1 FY 15 vs Q1 FY 14
Slide 16: Novelis: Shipment in every region increased vs prior year
Novelis: Shipment in every region increased vs prior year Sales - $ Bn , Shipments - KT
Slide 17: Copper Business
ADITYA BIRLA COPPER BUSINESS
Slide 18: Cu: Mixed Industry Trends
Cu: Mixed Industry Trends… Q1 FY15 vs. Impact Q1 FY14 (YoY) TCRC Higher LME ($/t) Lower Exch. Rate Favourable (`/$) Acid Price Lower DAP Stable Realization
Slide 19: Cu: Strong Volumes
Cu: Strong Volumes Higher production Improved Cu-III performance post last year’s shutdown Cathode (kt) DAP (kt) 56 96 36 68 Q1FY 14 Q1 FY15 Q1 FY 14 Q1 FY 15 DAP production fell owing to annual and expansion related shutdown
Slide 20: Cu: Financial Performance
Cu: Financial Performance Net Sales (` Cr) EBIT (` Cr) 5,422 318 317 4,990 3,636 Planned s/d 81 Q1 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q4 FY14 Q1 FY15 Robust Financial performance
Slide 21: Summing Up
SUMMING UP Greenfield factories progressing towards realizing their potential… Encouraging trend in metal realization .. Strong LME+Premium … augurs well Robust performance in Copper business expected to continue Novelis capacities ramping up… FY 15.. A year of Consolidation…
Slide 22: Thank you
Thank you REGISTERED OFFICE Century Bhavan, 3rd Floor, Dr. Annie Besant Road, Worli, Mumbai 400 030 Telephone- +91 22 6662 6666 Website www.hindalco.com E mail hindalco@adityabirla.com 22 Corporate Identity No. L27020MH1958PLC011238
Slide 23: Forward Looking & Cautionary Statement
Forward Looking & Cautionary Statement 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