Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY19 Earnings Presentation
30 slides from Hindalco Industries's earnings presentation, Aug 10, 2018
Slide 1: Hindalco Industries Limited Q1 FY19 Earnings Presentation
Hindalco Industries Limited Q1 FY19 Earnings Presentation 10th August, 2018
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 FY19 04 • Aluminium Economy & Industry Updates – Global & Domestic 07 Result Highlights : Operational Performance - Q1 FY19 12 • Copper Result Highlights : Financial Performance - Q1 FY19 19 Appendix 26 • Novelis Inc. Hindalco Industries Limited EXCELLENCE BY DES
Slide 4: Key Highlights – Q1 FY19
Key Highlights – Q1 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 4
Slide 5: Key Highlights – Q1 FY19
Key Highlights – Q1 FY19 Hindalco Standalone Plus Utkal Alumina ▪ Highest ever quarterly EBITDA of Rs. 1,951 crore vs Rs. 1,661 crore in Q1 FY18 and Rs. 1,807 crore in Q4 FY18, on the back of supporting macros and higher by-products realisations in Copper Business, partially offset by increase in co
Slide 6: Key Highlights – Q1 FY19 .. Contd.
Key Highlights – Q1 FY19 ..Contd. Copper ▪ EBITDA at Rs. 335 crore this quarter vs Rs. 322 crore in Q1 FY18, up by 4% due to supporting macros and improved realizations of by- products ▪ Copper Cathode production was down at 81 Kt in Q1 FY19 vs 109 Kt in Q1 FY18, due to planned maintenance shutdown
Slide 7: Economy & Industry : Global & Domestic
Economy & Industry : Global & Domestic Hindalco Industries Limited EXCELLENCE BY DESIGN 7
Slide 8: Economy Updates
Economy Updates Global Economy ▪ Global economy continues to expand amid divergent growth trajectories of major economies ▪ Amongst DM- US growth accelerates while Japan and Euro areas slow down ▪ Amongst EM- Chinese growth decelerates, India continues to expand while ASEAN expected to stabilize ▪ I
Slide 9: Aluminium Industry Overview - Global
Aluminium Industry Overview - Global Market Balance (KT) ▪ Demand is expected to grow by 4-5% and production 597 is likely to grow around 1-2% in CY18. 427 263 ▪ Global market deficit (including China) is expected in 12 97 47 CY18. -185 -282 ▪ China announced winter cuts in 2018 also. Recently, -415
Slide 10: Domestic Aluminium Industry Drivers
Domestic Aluminium Industry Drivers • Demand in domestic market continues to improve - grew by 10% YoY to 924 kt this quarter • Increase in low cost imports of fake semis and wire rods from China and ASEAN countries impacted domestic demand for primary metal • Increase in coal, furnace oil and anode
Slide 11: Copper Industry – Overview and Drivers
Copper Industry – Overview and Drivers • Global consumption of refined copper to touch 23.6 MnT and production is expected reach 23.3 MnT in CY18 - indicating a marginal deficit in 2018. • Domestic demand for refined copper grew by 12% YoY to 178 kt in Q1FY19. • Market share of imports touched 40% i
Slide 12: Result Highlights: Operational Performance – Q1 FY19
Result Highlights : Operational Performance – Q1 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 12
Slide 13: Operational Performance : Aluminium
Operational Performance : Aluminium Hindalco Industries Limited EXCELLENCE BY DESIGN 13
Slide 14: Production – Alumina, Aluminium Metal & VAP
Production – Alumina, Aluminium Metal & VAP Alumina (Inc. Utkal Alumina) KT Aluminium Metal (KT) VAP incl. Wire Rod (KT) 116 123 724 710 695 321 320 323 113 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 • Alumina production marginally • Stable Aluminium Metal • Value Added
Slide 15: Operational Performance : Copper
Operational Performance : Copper Hindalco Industries Limited EXCELLENCE BY DESIGN 15
Slide 16: Production – Copper
Production – Copper Cathode (KT) CC Rod (KT) DAP (KT) 61 70 109 67 105 81 39 41 30 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 • Cathode production was lower due to • CC Rod production up by 56% on planned maintenance shutdown in account of ramping up of the new one of th
Slide 17: Operational Performance : Novelis Inc
Operational Performance : Novelis Inc Hindalco Industries Limited EXCELLENCE BY DESIGN 17
Slide 18: Operational Performance - Novelis Inc.
Operational Performance - Novelis Inc. • Outstanding operating performance with increased asset optimization Overall Shipments (KT) and favorable market conditions drive strong results • Global demand for aluminum Flat Rolled Product (FRP) remains high 785 805 797 • Total FRP shipments grew 2% at 79
Slide 19: Result Highlights: Financial Performance – Q1 FY19
Result Highlights : Financial Performance – Q1 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 19
Slide 20: Hindalco Standalone plus Utkal Alumina
Hindalco Standalone plus Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 11,681 10,414 10,670 1,951 1,661 1,807 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 PBT (Before Exceptional Items) (Rs. Crore) Profit After Tax (Rs. Crore) 1,007 734 616 773 599 364 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY
Slide 21: Hindalco Aluminium plus Utkal Alumina
Hindalco Aluminium plus Utkal Alumina Revenue (Rs. Crore) EBITDA (Rs. Crore) 5,513 5,667 1,531 5,014 1,265 1,132 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 • EBITDA up 35% compared to Q1 FY18 on account of better macros and stable operations, despite pressure on raw material costs • EBITDA marg
Slide 22: Copper Business
Copper Business Revenue (Rs. Crore) EBITDA (Rs. Crore) 6,170 329 335 5,403 322 5,006 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 • Revenues were lower due lower volumes on account of planned maintenance shutdown in Q1 FY19 in one of the smelters • EBITDA was higher by 4% vs Q1 FY18 due to suppor
Slide 23: Novelis Inc.
Novelis Inc. Revenue (USD billion) Adjusted EBITDA* (USD million) Adjusted EBITDA* per tonne 332 396 417 3.1 3.1 319 368 289 2.7 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 * Adjusted EBITDA excludes metal price lag • Revenues up by 16% to US$ 3.1 billion in Q1FY19 vs US$
Slide 24: Sustainable Performance
Sustainable Performance Sustainable Business ○ Highest ever quarterly EBITDA on the back of excellent operating performance Performance ○ PAT doubled to Rs. 734 crore ○ Hindalco (including Utkal) Net Debt to EBITDA improves to 2.57x as on 30th June ‘18 from 2.67x at end of Stronger Balance Sheet Mar
Slide 25: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 26: Appendix
Appendix Hindalco Industries Limited EXCELLENCE BY DESIGN 26
Slide 27: Sales Volumes – Aluminium & Copper
Sales Volumes – Aluminium & Copper Aluminium Metal Sales in all forms (KT) Copper Sales (KT) 321 105 108 299 300 82 Q1 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q4 FY18 Q1 FY19 Hindalco Industries Limited EXCELLENCE BY DESIGN 27
Slide 28: Financial Key Figures – Hindalco Standalone plus Utkal Alumina
Financial Key Figures – Hindalco Standalone plus Utkal Alumina YOY Particulars Q1 FY18 Q4 FY18 Q1 FY19 (Rs. Crore) Change % Revenue from Operations 10,414 11,681 10,670 Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium (includes Utkal) 1,132 1,265 1,531 35% Copper 322 329 335 4% Other
Slide 29: Financial Key Figures – Hindalco Standalone
Financial Key Figures – Hindalco Standalone (Rs. Crore) YOY Change Particulars Q1 FY18 Q4 FY18 Q1 FY19 % Revenue from Operations 10,412 11,681 10,593 Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium 880 920 1,011 15% Copper 322 329 335 4% Others 207 213 85 Total EBITDA 1,409 1,463 1,
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