Hindalco Industries Ltd Investor Presentation Standalone FY12

Transcription

1 Hindalco Industries Ltd Investor Presentation Standalone FY12

2 Presentation Structure Highlights Performance Review Projects Progress 2

3 3 Highlights and Financial Performance

4 FY12: Highlights Strong performance despite severe cost pressures Portfolio strategy depicted its benefits as upstream business witnessed margin squeeze Aluminium Record production, efficiency gains Copper Strong all-round performance Financing strengthened Largest NCD offering in the recent times (Rs 3,000 Crore) Long Tenor, Attractive pricing Preferential warrant allotment to promoter (~ Rs 2,160 Crore) ) 4 Projects - In advanced stages

5 Financial Performance (Standalone, FY 12) ` Cr FY11 FY12 (Unaudited) Change (%) Net Sales 23,859 26, PBITDA 3,502 3, PBT 2,595 2, PAT 2,137 2, EPS (`)

6 Financial Performance (Standalone, Q4) (Unaudited) ` Cr Q4 FY11 Q4 FY12 Change (%) Net Sales 6,846 7, PBITDA 1,019 1, PBT (1.0) PAT (9.7) EPS (`) (9.7) Q4 PBITDA maintained despite lower rupee LME and input cost surge 6

7 Robust Financial Performance LME ($/t) 2700 PBITDA (` cr) Improved quarterly performance through Higher volumes & VAP Better efficiencies Q1 Q2 Q3 Q FY

8 8 Business Environment

9 FY12: A Challenging Year Year started on an optimistic note with strong LME pricing amidst strong investor appetite During the year LME rally fizzled out as global macro economic concerns reemerged Cost push however continued, especially energy push due to geo-political concerns & India specific coal issues Physical demand continued to remain strong even as inventory overhang continued Of late, slowdown in China has clouded the demand outlook 9

10 Al. LME: Softened again , Apr r-11 May y-11 Jun n-11 Ju ul-11 Aug g-11 Sep p-11 Oct t-11 LME Al ($/t) 2,047 Nov v-11 Dec c-11 Jan n-12 Feb b-12 Mar r-12 Cost curve supports current LME level Apr r-12 World aluminium market had a 750+kt surplus in Q1, 2012 Consumption growth only 3.3% in Q1 vs. 9.6% in 2011 Macro-risks holding back LME when 25-30% of global capacity has cost above ruling LME Global inventory at 12.7 mn tonne (102 days); return on warehousing deals positive at present 10

11 Al: Cost pressures way ahead of LME Relative Increase (FY12 over FY11) >40% ~20% >25% >30% 8% Rupee LME Coal Caustic Crude derivatives FO 11

12 12 Performance Review

13 Key External Drivers Aluminium LME ($/t) 2,500 Other Drivers (vis-à-vis year-ago period) 2,257 2,317 Q4 FY12 FY12 2,177 Coal Q4 F11 Q4 FY12 FY11 FY12 FO and carbon costs Exchange Rate (`/$ ) Copper TCRC Sulphuric Acid realization Significant Cost pressure continues Q4 FY11 Q4 FY12 FY11 FY12 13

14 Al: Mitigating cost pressures Higher production through asset sweating and continuous improvement in efficiencies i i Domestic sales up 5% to 489 kt Overall metal sales up 6% to 568 kt 8% increase in special alumina /hydrate sale, even as standard alumina sale declined on higher captive use Strong operational performance helped us tide over the rough external environment 14

15 Al: Physical Performance - Annual Alumina Output (kt) Metal Output (kt) 7% FY11 1,353 FY FY12 1,355 FY Ever highest FY11 FY12 Rolled Product Sales (Tonne) 195, ,254 3% Extrusion Sales (Tonne) FY11 FY12 35,033 30,023 14% Alupuram plant under lockout till Q3 15

16 Al: Physical Performance Quarter Alumina Output (kt) Metal Output (kt) Q4 FY Q4 FY % Q4 FY Q4 FY Rolled Sales (Tonne) Extrusions Sales (Tonne) Q4 FY11 49,766 12% Q4 FY11 7,518 16% Q4 FY12 55,689 Q4 FY12 8,744 16

17 Al: Revenue break up (Rs Crore) Metal Chemicals FRP and Foils 19% 4, % 3,209 3,409 2,924 FY11 FY12 FY11 FY12 FY11 FY12 Extrusions Others FY11 FY12 FY11 FY12 Strong top line growth Primarily driven by higher h volumes & improved mix 17

18 Aluminium Financials ` Cr FY11 FY12 Change (%) Net Sales 7,965 9, EBIT 2,004 1,822 (9.1) ` Cr Q4 FY11 Q4 FY12 Change (%) Net Sales 2, , EBIT (14.0) 18

19 Copper Performance 19

20 Cu: Performance Drivers Output was affected by inferior concentrate grade & planned shutdown Cathode output (kt) But performance lifted through various initiatives More VAP: Higher proportion of CCR production FY Optimization of the marketing mix FY Greater value from selenium and waste-to-wealth initiatives Increased usage of external scrap Improved recovery and efficiencies

21 Cu: Revenue Drivers (Rs Crore) Cathode CCR 7,488 7,239 5,683 10% 6,261 FY11 FY12 FY11 FY12 Fertilizers & Acids Precious Metals & others 3,047 31% 1,028 1,949 56% 782 FY11 FY12 FY11 FY12 Robust business model delivered strong numbers 21

22 Copper Financials `Cr FY11 FY12 Change (%) Net Sales 15,902 17, EBIT ` Cr Q4 FY11 Q4 FY12 Change (%) Net Sl Sales 4,637 5, EBIT

23 23 Projects Progress

24 Utkal Refinery Heat Exchanger erected Turbine alignment in progress CHP Stacker and Reclaimer Erection of Rod Mill 24

25 Mahan Smelter & CPP Pot Line Inside view Fume Treatment Centre Turbine Power Plant View 25

26 Aditya Smelter & CPP Pot Room Switch Yard Cooling Tower Power Plant Chimney 26

27 Hirakud FRP Hot Mill Cold Mill 27

28 Summary. India-specific cost pressures continue especially relating to coal Operational excellence helped us tide over these challenging times Robust business model delivering results 28

29 Thank you