Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY24 Earnings Presentation
37 slides from Hindalco Industries's earnings presentation, Aug 8, 2023
Slide 1: Stock exchange intimation of board meeting investor presentation
August 8, 2023 BSE Limited National Stock Exchange of India Limited Luxembourg Stock Exchange Scrip Code: 500440 Scrip Code: HINDALCO Scrip Code: US4330641022 Sub: Investor Presentation of the Board Meeting of Hindalco Industries Limited (‘the Company’) Ref: a. Regulation 30 (read with schedule III-
Slide 2: Hindalco Industries Ltd Q1-FY24 Earnings Presentation
Hindalco Industries Ltd Q1-FY24 Earnings Presentation 08th Aug 2023
Slide 3: 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 4: Contents
Contents 1. Sustainability Updates 2. Financial performance at a glance 3. Economy & Industry Updates – Global & Domestic 4. Business Performance • Consolidated • Novelis • Aluminium : Upstream Business • Aluminium : Downstream Business • Copper 5. Summary – Key Takeaways 6. Annexures : • Consolidat
Slide 5: Sustainability Updates
LS a wan Sustainability juuselieleeemmeemeasti cca Updates
Slide 6: Hindalco India Business: Sustainability @Core
Hindalco India Business: Sustainability @Core Greenbelt and Biodiversity • All season BMP study completed for 12 mine sites Workforce Health & Safety and six units across Hindalco units till Q1 FY24. • Initiatives have been taken to • Study at additional 2 sites and 1 mine cluster develop contractor
Slide 7: Hindalco: ESG metrics in Waste, Water, GHG, LTIFR & Fatality
Hindalco : ESG metrices in Waste, Water, GHG, LTIFR & Fatality % Recycling of Bauxite Residue/ Red mud % Recycling of Ash Aluminium Specific GHG Emissions (except from Utkal Refinery) (t CO2e/t) 124 127 114 109 105 100 102 83 19.74 19.66 19.45 19.26 FY21 FY22 FY23 Q1FY24 FY21 FY22 FY23 Q1FY24 FY21 F
Slide 8: Financial Performance at a glance
Financial Performance at a glance
Slide 9: Quarterly Financial Performance at a Glance (Q1 FY24 Vs Q4 FY23)
Quarterly Financial Performance at a Glance (Q1 FY24 Vs Q4 FY23) Particulars UOM Q4 FY23 Q1 FY24 Change QoQ Revenue ₹ in Cr 55,857 52,991 -5% EBITDA ₹ in Cr 5,818 6,109 5% Consolidated PAT ₹ in Cr 2,411 2,454 2% Shipments Kt 936 879 -6% Revenue $ Billion 4.4 4.1 -7% EBITDA $ Million 403 421 4% Novel
Slide 10: Economy & Industry Updates
Economy & Industry Updates Global & Domestic
Slide 11: Economy Updates
Economy Updates Global GDP Growth (% YoY) 6.0 India GDP Growth (% YoY) 5.6 5.4 9.8 10.3 8.5 8.3 8.3 8.7 4.3 7.4 8.0 3.9 6.6 7.0 7.2 3.5 3.5 3.6 3.5 3.4 3.6 3.5 6.4 6.5 3.0 2.9 3.0 5.5 3.9 4.2 CY10 CY21 CY22F CY23F CY07 CY08 CY09 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 -0.1 Source: IMF Sour
Slide 12: Global Aluminium Industry
Global Aluminium Industry Global Demand & Supply Balance (Million Tons) Global Price of Aluminium (Cash -$/Ton) 3,280 Production Consumption Metal Balance 2% 1% -2% 2% 2,875 2,762 2,648 33.9 34.4 17.2 17.3 34.4 33.7 17.4 17.7 (0.5) 0.7 (0.2) (0.4) 2,400 2,395 2,354 2,324 2,258 2,096 19.6 20.1 19.6 2
Slide 13: Domestic Aluminium Industry
Domestic Aluminium Industry Domestic Demand (Kt) 908 939 1030 1038 1000 1178 1163 1130 1141 218 196 213 206 161 221 164 188 162 453 477 410 427 450 394 418 381 380 419 422 418 502 490 506 508 340 396 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24E Domestic Sales Scrap Import
Slide 14: Aluminium Flat Rolled Products (FRP) Industry
Aluminium Flat Rolled Products (FRP) Industry ▪ Global FRP Demand is estimated to grow by ~1% in CY23 (vs CY22 growth of 3%). Beverage Packaging Automotive Speciality Aerospace ▪ Recent inventory reduction adjustments largely complete ▪ Pent-up demand increasing ▪ Inflation & interest rate pressure
Slide 15: Global Copper Industry
Global Copper Industry Global Demand & Supply Balance (in Mt) Production (MT) Consumption (MT) Balance (MT) 4.0% 4.0% 0.1 0.1 12.0 12.5 11.9 12.4 6.2% -0.4 -0.5 3.4% 1.3 1.1 7.1 5.7 5.8 0.5 0.6 6.9 6.7 6.0 6.2 6.3 2.9 2.9 -1.0 -0.9 -1.1 3.4 3.5 -1.2 5.4 6.2 6.6 5.2 3.8 2.6 2.7 3.4 H1 CY22 H1 CY23 Q2
Slide 16: Domestic Copper Industry
Domestic Copper Industry Market Demand (kT) 192 199 190 188 186 173 45 45 54 52 33 99 140 143 141 145 138 93 Q3 FY20 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Domestic Supply Import ▪ In Q1 FY24, market demand increased by ~10% YoY at 190 kt vs 173 KT in Q1 FY23. ▪ On a sequential basis, In Q1 FY24, m
Slide 17: Consolidated Financial Performance
Consolidated Financial Performance
Slide 18: Consolidated Financial Performance
Consolidated Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) 58,018 8,640 55,857 52,991 5,818 6,109 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 PBT after Exceptional Items (₹ Crore) PAT from Continuing Operations (₹ Crore) 6,088 4,119 3,317 2,411 2,454 2,839 Q1 FY23 Q4 FY23 Q1 FY24 Q1 F
Slide 19: Consolidated Debt and leverage
Consolidated Debt and leverage (₹ Crores) Particulars As on As on As on As on As on (Consolidated) 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 Gross Debt 64,023 61,536 59,720 58,337 57,382 Cash & Cash Equivalents 21,830 19,473 18,004 24,378 18,919 Net Debt 42,193 42,063 41,716 33,959 38,463 TT
Slide 20: Novelis
Novelis
Slide 21: Novelis: An Overview
Novelis : An Overview Overall Shipments (Kt) ▪ Sequential improvement in Adjusted EBITDA and EBITDA per ton in Q1 FY24 on account of better cost control, favorable product mix and record automotive 962 936 shipments 879 ▪ Subdued shipments in Q1 FY24 as compared to Q4 FY23 due to lower beverage can
Slide 22: Novelis Financial Performance
Novelis Financial Performance Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne) 5.1 561 4.4 583 4.1 403 421 479 431 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 ▪ Net sales in Q1 FY24 stands at $4.1 ▪ Adjusted EBITDA at $421 million in ▪ Adjusted EB
Slide 23: Aluminium Upstream Performance
Aluminium Upstream Performance
Slide 24: Aluminium Upstream Business
Aluminium Upstream Business Production (Kt) Shipments (Kt) ▪ Production and shipments were 331 kt 329 323 341 327 328 331 86 and 341 kt, higher by 1% and 5% QoQ 84 72 ▪ Revenues were nearly flat in QoQ due 245 251 255 to lower metal prices, offset by higher Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1
Slide 25: Aluminium Downstream Performance
Aluminium Downstream Performance
Slide 26: Aluminium Downstream Business
Aluminium Downstream# Business ▪ In Q1 FY24 production was flat whereas Production (Kt) Shipments (Kt)* shipments was lower by 9% QoQ due to 86 90 81 sluggish start in the month of April. 84 84 78 ▪ In Q1 FY24 Revenue was ₹2,435 crore, Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 lower by 11% QoQ
Slide 27: Copper
Copper
Slide 28: Copper Metal & VAP: Production and Sales
Copper Metal & VAP : Production and Sales Production : Copper Cathode (Kt) Production : CC Rod (Kt) ▪ Cathode production was 71Kt, down 91 95 106 79 32% QoQ impacted by scheduled 92 71 maintenance shutdown. ▪ Copper Rods production was 95Kt, Q1 FY23 Q4FY23 Q1 FY24 Q1 FY23 Q4FY23 Q1 FY24 up 5% QoQ Sh
Slide 29: Financial Performance: Copper Business
Financial Performance : Copper Business Revenue (₹ Crore) EBITDA (₹ Crore) 11,206 11,502 10,529 565 598 531 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 ▪ Revenues were up by 3% QoQ in Q1 ▪ EBITDA in Q1 FY24 down 11% QoQ, FY24, on account of higher shipments impacted by lower cathode production a
Slide 30: Summary
Summary
Slide 31: Key Takeaways
Key Takeaways Resilient India Business Outperformance by Copper Novelis is recovering • Strong balance sheet at India • Copper Business delivered a • Sequential Recovery in Q1 FY24 Business, an enabler for organic consistent performance despite vs Q4 FY23 growth planned maintenance shutdown • Factor
Slide 32: Thank You
Thank You 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 21st Floor, One International Centre, Tower 4, Near Prabhadevi Railway Station, Senapati Bapat Marg, Prabhadevi, Mu
Slide 33: Consolidated: Key Financials
Consolidated : Key Financials Change QoQ Particulars (₹ Crore) Q1 FY23 Q4 FY23 Q1 FY24 YoY % Change % Revenue from Operations 58,018 55,857 52,991 -9% -5% Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) Novelis* 4,334 3,314 3,456 -20% 4% Aluminium Upstream 3,272 2,192 1,935 -41% -
Slide 34: Hindalco (India) Business: Key Financials
Hindalco (India) Business : Key Financials YOY QoQ Particulars (₹ Crore) Q1 FY23 Q4 FY23 Q1 FY24 Change % Change% Revenue from Operations 19,734 20,443 20,230 3% -1% EBITDA Aluminium - Upstream 3,272 2,192 1,935 -41% -12% Aluminium - Downstream 158 112 147 -7% 31% Copper 565 598 531 -6% -11% Busines
Slide 35: Aluminium (India) Business: EBITDA and Sales Reconciliation
Aluminium (India) Business : EBITDA and Sales Reconciliation Aluminium Business EBITDA Particulars (in Rs Cr) Q1 FY23 Q4 FY23 Q1 FY24 EBITDA - Upstream 3,272 2,192 1,935 EBITDA - Downstream 158 112 147 Intersegment Profit /(Loss) Elimination (Net) (66) (58) (10) Metal Price Lag* (43) (17) (51) Alumi
Slide 36: Production: Alumina (India)
Production : Alumina (India) Alumina* (KT) 878 861 855 Q1 FY23 Q4 FY23 Q1 FY24 ▪ Total Alumina production was down 1% YoY ▪ Of this production at Utkal Alumina refinery at 575 Kt in Q1 FY24, up 3% QoQ *Hydrate as Alumina 35
Slide 37: Q1FY24: Earnings Concall
Q1FY24 : Earnings Concall Earnings Conference Call is scheduled at 4:00 PM (IST) on August 8, 2023. The dial in numbers for the call are given below Location: ACCESS NUMBER Universal Access (India) Primary Number (+) 91 22 6280 1303 Secondary Number (+) 91 22 7115 8204 International TollFree Numbers