HINDALCO INDUSTRIES LTD. - 500440 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Pursuant to Regulation 30 of Listing Regulations, herewith is the intimation and below is the list of investor meetings (group and one-on-one) at the Kotak Securities Investor Conference 2022 (virtual) to be attended by the Company representatives.
Hindalco: Favourable LME prices buoy Q3 operating performance, robust demand outlook for FY23
While ferrous metal makers like Tata Steel and JSW Steel generated negative returns in the past three months, Hindalco’s stock witnessed a different trajectory altogether. This non-ferrous metal maker generated stock returns of 11.8% driven by buoyant LME aluminium prices. The company’s strong performance in Q3FY22 is kind of an Icing on the cake beating brokerage Jefferies’ expectations. Interestingly, aluminium is a key input for electric vehicles and solar photo-voltaic modules. So, has the time finally come for ‘clean energy’ metals? Favourable pricing environment works wonders for Hindalco in Q3FY22 LME (London Metal Exchange) aluminium prices corrected nearly 22% to US$ 2,500 levels between mid-October and mid-November 2021. However, they climbed back steadily to US$ 3,200 levels in January 2022 given multiple supply-side bottlenecks. Chinese sanctions on metal production led by its decarbonization drive, geopolitical concerns and energy crises in Europe were instrumental in creating limited aluminium supply. China accounted for nearly 44% of the world's aluminium production in Q3FY22. Aluminium smelting, an upstream activity for a metal maker, is an energy intensive process with power and fuel costs constituting one-third of the total operating costs. Higher power prices in Europe due to costly natural gas and coal led to many smelters shutting down operations. Lower natural gas exports from Russia amplified the energy crisis in European nations. Russia wasn’t able to provide for its domestic power requirements leading to the export sanctions. Aluminium supplies might be further constrained should sanctions be imposed on Russia if it attacks Ukraine. Russia accounted for over 6% of the world's aluminium production in Q3FY22. To put it simply, the interplay of limited supplies and decent demand is leading to a surge in global aluminium prices. Hindalco’s Q3FY22 revenues rose 44% YoY to Rs 50,272 crore led by robust sales realisations in both its aluminium (India) business and foreign subsidiary Novelis. Net profits jumped 2X to Rs 3,675 crore in Q3 led by the stellar show of the aluminium (India) segment. Aluminium (India) segment’s EBITDA grew not only on an YoY basis but also rose 4% sequentially to Rs 3,376 crore despite challenges on the input cost front. However, Novelis’ EBITDA fell 7.5% sequentially to Rs 3,792 crore due to inflationary pressures felt especially in the North American and European regions. Hindalco’s copper segment’s EBITDA, while contributing just 5% to the overall profit pie, grew over 60% YoY to Rs 390 crore in Q3 led by higher sales volumes of copper metal and improved realisations. Novelis puts forth a resilient performance despite supply-chain bottlenecks Novelis is one of the largest recyclers of aluminium metal globally and around 60% of its production inputs consist of aluminium scrap. It earns a spread between the price of recycled goods and LME quotes (including local premium). This basically means the difference between the price for recycled aluminium (secondary) and the LME primary aluminium price. Hence, the company’s quarterly revenues grew 33% YoY to US$4.3 billion in Q3 led by a 40% YoY jump in aluminium prices and rising scrap spreads. On the other hand, Novelis’ sales volumes remained flat YoY at 933 kilo tonnes (kt) in Q3. Before we dissect Novelis’ performance region-wise and product-wise, it is worth noting that global consumption of aluminium grew by only 1% YoY to 17 million tonnes on account of lower demand from China. Novelis’ sales volumes also suffered owing to lower shipments to Asia (down 7.2% YoY). A 26-day production shutdown at its South Korean factory, as well as its goods getting stuck at ports due to container shortages, were the key supply chain bottlenecks which affected sales in Asia. Novelis derives nearly 58% of its volumes from recycled beverage cans and the other 40% from automotive and specialty products. Sales to beverage can makers softened in Q3 while the shipments for automotive products improved despite semiconductor shortages. Interestingly, the company got a better price for its shipments in South America owing to a larger shift from glass based to aluminium can based products (beverage can segment). This helped Novelis’ EBITDA from South America rise 38% YoY to US$ 178 million. The company also derived higher pricing for its specialty products owing to improved demand from the building and construction sector as well the consumer durables space. Novelis’ realisations improved on account of favourable pricing environment and better product mix. However, higher energy and transshipment costs due to supply chain disruptions caused its EBITDA/tonne to be flat YoY and fall 5% QoQ to US$ 544/tonne. India operations see higher value-added sales, margins at all-time highs Aluminium (India) business saw 8% YoY sales volume growth in its value-added segment, which consists of downstream products like extrusions, flat rolled products and foils. Value-added segment now contributes around 27% to total Indian metal sales (aluminium) as against 25% in Q3FY21. The upstream segment’s sales trajectory remained lacklustre. Overall, volumes grew marginally by 4% to 411 KT as strong demand from packaging, consumer durables and building and construction sectors got offset by subdued demand from the auto sector. Notably, the copper segment contributes nearly 20% to Hindalco’s overall topline. Although copper volumes remained flat sequentially, robust YoY sales volume growth of 30%+ proved to be a surprise element for investors. Understandably, this segment saw its revenues and EBITDA jump by over 60% YoY to Rs 10,255 crore and Rs 390 crore respectively in Q3. Interestingly, the aluminium (India) business sustained its EBITDA margins at 40%+ levels in Q3FY22 as well. According to the Q3FY22 earnings call, the company witnessed material cost inflation only for carbon and caustic soda and not for coal as it had reasonable inventories of the same. Overall, the operating costs rose by 7.5% QoQ which were offset by a 9% QoQ rise in sales realisations. Hindalco expects costs to rise by 9.5% QoQ in Q4FY22 as it had to resort to expensive e-auctions to secure coal supplies. Another key development in Q3FY22 was the reduction in Hindalco’s net debt by nearly Rs 4,300 crore. Riding the wave of a favourable aluminium upcycle, the company reduced its net debt to EBITDA ratio to 1.62X in Q3FY22 from 1.93X in Q2FY22. With net debt now at tolerable levels, the management looks to a new capex cycle in the next 3-4 years. Hindalco to announce additional capex projects in FY23 on robust demand outlook With the completion of the Utkal expansion (alumina plant), another US$ 900 million worth of downstream projects are on the anvil for the India operations. The company aims to double its downstream annual capacity to 600 KT from 320 KT currently in the next 3-4 years. The company sold 100 KT of alumina, which is an input for aluminium smelting, in Q3FY22 and expects to increase this figure to 150 KT in Q4FY22 after the full ramp-up of the Utkal plant. Apart from this, the company is set to announce a couple of new capex projects including a possible brownfield expansion in the upstream segment in the coming fiscal given the positive outlook on LME aluminium prices for next 5 years. Hindalco sees robust demand coming in from consumer durables space, packaging (for pharma sector) and construction space (rails, metros and airports). Novelis announced $870 million expansion and upgradation projects at its plants based in China, New York and Kentucky after October 2021. Most of these projects involve upgradation of recycling and automotive sheet capabilities. The company expects nearly 20% rise in aluminium demand from the automotive sector in 2022 given the higher adoption of electric vehicles, SUVs and trucks. Most brokerages like Axis Securities and Motilal Oswal believe that LME aluminium prices are likely to sustain at the current high levels in the near-term given the supply-side constraints. The longer-term demand story for both aluminium and copper looks even more promising given the gradual shift towards vehicle electrification and sustainable packaging. HINDALCO INDUSTRIES LTD. - 500440 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Dear Sir/ Madam, Pursuant to Regulation 30 of Listing Regulations, herewith is the intimation and below is the list of investor meetings (group and one-on-one) at the Axis Capital India Conference 2022 (virtual) to be attended by the Company representatives. HINDALCO INDUSTRIES LTD. - 500440 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Pursuant to Regulation 30 of Listing Regulations, please find below the details of the scheduled Investor Meeting which will be attended by the representatives of the Company. Date of Meeting Name of the Fund/Investor 14th February, 2022 T. Rowe Price, Singapore Note: The schedule of the aforesaid meeting may undergo change due to exigencies on the part of Investor/Company. This is to further inform that the copy of latest investor presentation of Q3-FY22 earnings to be made before the Fund House/Investors, can be accessed on the website of the company www.hindalco.com/investor-centre/reports-and-presentations
Earnings Call for Q3FY22 of Hindalco Industries
Conference Call with Hindalco Industries Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript. Q3FY22 Quarterly Result Announced for Hindalco Industries Ltd.
Aluminum and Aluminium Products company Hindalco Industries declares Q3FY22 result: Net Profit up 96%, at a record-high of Rs 3,675 crore All-time high Consolidated PAT at Rs 3,675 crore, up 96% YoY Consolidated EBITDA at Rs 7,624 crore, up 38% YoY Novelis’ quarterly Adjusted EBITDA at $506* million and EBITDA per ton at $544*, both up by 1% YoY Novelis Net Income from continuing operations at $259* million, up 33% YoY All-time high quarterly Aluminium India EBITDA at Rs 3,376 crore, up 131% YoY; EBITDA margins of 41% Consolidated Net Debt to EBITDA at a strong 1.62x as of December 31, 2021 vs 2.59x as of March 31, 2021 Hindalco acquires Hydro’s high-end extrusions facility at Kuppam, Andhra Pradesh Hindalco retains position as the world’s most sustainable aluminium company in DJSI 2021 Hindalco achieves ‘S&P; Global Sustainability Yearbook 2022 - Gold Class’ distinction Hindalco named 'Sustainable Corporate of the Year Award - 1st Runner up' in the Frost & Sullivan and TERI Sustainability 4.0 Awards 2021 Hindalco certified as a Great Place to Work™ by the Great Place to Work™ Institute, India Result PDF HINDALCO INDUSTRIES LTD. - 500440 - Announcement under Regulation 30 (LODR)-Investor Presentation
This is to inform that the Board of Directors of the Company at their meeting held today i.e on 10th February, 2022 approved the following: i. Unaudited Standalone and Consolidated Financial Results for the Quarter ended 31st December, 2021. The meeting commenced at 12:00 noon and concluded at 1:40 p.m Pursuant to Regulation 33 of Listing Regulations, enclosed are the following documents : 1. Press Release 2. Investor Presentation 3. Unaudited standalone and Consolidated Financial Results for the quarter ended 31st December, 2021 and Limited Review Report The same is also available on our website www.hindalco.com. Further, the Trading Window for dealing in securities shall remain closed until 48 hours from this announcement. The same has been duly communicated to all the Designated Persons. HINDALCO INDUSTRIES LTD. - 500440 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
This is to inform that the Board of Directors of the Company at their meeting held today i.e on 10th February, 2022 approved the following: i. Unaudited Standalone and Consolidated Financial Results for the Quarter ended 31st December, 2021. The meeting commenced at 12:00 noon and concluded at 1:40 p.m Pursuant to Regulation 33 of Listing Regulations, enclosed are the following documents : 1. Press Release 2. Investor Presentation 3. Unaudited standalone and Consolidated Financial Results for the quarter ended 31st December, 2021 and Limited Review Report The same is also available on our website www.hindalco.com. Further, the Trading Window for dealing in securities shall remain closed until 48 hours from this announcement. The same has been duly communicated to all the Designated Persons. HINDALCO INDUSTRIES LTD. - 500440 - Outcome Of Board Meeting Of Hindalco Industries Limited ('The Company') Held On 10Th February, 2022
This is to inform that the Board of Directors of the Company at their meeting held today i.e on 10th February, 2022 approved the following: i. Unaudited Standalone and Consolidated Financial Results for the Quarter ended 31st December, 2021. The meeting commenced at 12:00 noon and concluded at 1:40 p.m Pursuant to Regulation 33 of Listing Regulations, enclosed are the following documents : 1. Press Release 2. Investor Presentation 3. Unaudited standalone and Consolidated Financial Results for the quarter ended 31st December, 2021 and Limited Review Report The same is also available on our website www.hindalco.com. Further, the Trading Window for dealing in securities shall remain closed until 48 hours from this announcement. The same has been duly communicated to all the Designated Persons.