Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q1 FY2006 Earnings Presentation
28 slides from Hindalco Industries's earnings presentation, Jul 29, 2005
Slide 1: Hindalco Industries Limited: Performance Review Q1-FY06
Hindalco Industries Limited On a high growth path Performance Review : Q1-FY06 29th July 2005
Slide 2: Hindalco: Excellent Q1 Performance
Hindalco: Excellent Q1 Performance Net Sales & Operating Revenue Rs. 2,208 Crs 7% PBDIT Rs.638 Crs 25% Pre- tax profits Rs. 475 Crs 31% Net Profit Rs. 325 Crs 38% EPS Rs. 35.00 40% EBITDA Margin improved from 24.9% to 28.9% 2
Slide 3: Drivers of Performance: Q1
Drivers of Performance : Q1 Particulars Unit Q1 FY06 Q1 FY 05 Al LME $/t 1,790 1,678 Re. / $ Rs. 43.53 44.92 Basic Customs Duty (Al) % 10% 15% Domestic Al Metal Realisation Rs./t 92,391 87,642 Standard Alumina Price $/t 312 282 Copper Tc/Rc c/lb 18.20 10.67 Cu LME $/t 3,394 2,792 Cu Duty Differentia
Slide 4: Hindalco: Financial Results First Quarter FY 2006
Hindalco: Financial Results First Quarter FY 2006 (In Rs. Crores) Q1FY06 Q1FY05 Chg % Net Sales & Operating Revenues 2,207.8 2,061.6 7.1% Other Income 33.6 51.5 -35.0% PBDIT 638.0 512.5 24.5% Interest & Finance Charges 46.1 44.0 4.7% Depreciation 116.9 105.7 10.6% Profit Before Tax 475.0 362.8 30.9%
Slide 5: Other Income
Other Income Other Income Lower other income compared to last (Rs. Crs) year mainly due to : 52 Crystallization of gains during Q1’ FY05 on Investments held in Income 34 fund with long term view. Annualised Yield on Treasury investments Pre Tax : 4.96% vs. 4.10% last year Post Tax : 4.64%
Slide 6: Interest & Financing Charges
Interest & Financing Charges Gross interest higher mainly because of 59 increase in Interest cost for copper division 51 46 resulting from increased working capital 44 and project spending Despite first draw down of Rs.495 crores made in Mar 2005 against term loan, interest cost for aluminium bu
Slide 7: Taxes
Taxes Taxes Current FBT Deferred Total tax rate has decreased from (Rs. Crs.) 35.1% to 31.3% on account of decrease 21 in corporate income tax rate. 1.4 Current Tax has remained flat at 31 26.8% vis-à-vis 26.4% Taxable profit has increased 96 128 Timing differences have reduced – leading to
Slide 8: Segment Analysis: Business Mix – Q1 FY06
Segment Analysis Business Mix – Q1 FY06 Revenue EBIT Capital Employed Aluminium Aluminium 61% Aluminium 89% 57% Copper Copper 43% 39% Copper 11% Q1 FY06 Q1 FY05 Al Cu Particulars Aluminium Copper Aluminium Copper Chg % Chg % Net Sales & Operating Revenue 1,341 868 1,160 903 15.5% -3.9% EBIT 438 53 3
Slide 9: Aluminium
ALUMINIUM
Slide 10: Aluminium Business: Q1 Highlights
Aluminium Business: Q1 Highlights Primary Metal production crosses 100,000 MT to reach 106,081 MT reflecting an impressive 10.4% rise over 96,095 in Q1 FY05 Value Added Products (VAP) share of Metal products • Increased to 50% from 47% last year in volume terms. • Increased to 57% from 54% last
Slide 11: Aluminium: Production Performance
Aluminium: Production Performance Production Unit Q1 FY06 Q1 FY05 % Chg Alumina MT 300,055 285,023 5.3% Primary Metal MT 106,081 96,095 10.4% Wire Rod MT 16,614 16,008 3.8% Rolled Products MT 47,110 42,181 11.7% Extrusions MT 7,627 7,130 7.0% Foils MT 6,084 6,523 -6.7% Alloy Wheels Nos. 31,087 19,12
Slide 12: Aluminium: Sales Volumes
Aluminium: Sales Volumes Sales Tonnage Unit Q1 FY06 Q1 FY05 % Chg Alumina MT 90,317 77,679 16.3% Primary Metal MT 34,353 35,666 -3.7% Wire Rod MT 16,043 16,039 0.0% Rolled Products MT 36,576 32,541 12.4% Extrusions MT 7,460 6,869 8.6% Foils MT 6,048 5,213 16.0% Wheels Nos 30,641 20,634 48.5% Share o
Slide 13: Aluminium: Sales Revenues
Aluminium: Sales Revenues (In Rs. Crores) Q1 FY06 Q1 FY05 % Chg Alumina 164.3 126.5 29.8% Primary Metal 318.5 312.7 1.9% Wire Rod 154.7 146.3 5.7% Rolled Products 435.7 361.6 20.5% Extrusions 92.8 79.1 17.3% Foils 111.4 108.8 2.4% Alloy Wheels 5.8 3.7 55.6% Others 35.3 6.7 426.2% Total Sales 1,318.5
Slide 14: Higher Share of Value Added Products
Higher Share of Value Added Products Sales (in MTs) MTs) Sales (in Rs. Crs) Crs) 640 50,084 550 44,623 Rolled Extrusion Foils 436 36,576 32,541 362 79 93 6,869 7,460 5,213 6,048 109 111 Q1 FY05 Q1 FY06 Q1 FY05 Q1 FY06 Growth vs Q1 FY05 Qty Turnover Extrusions 8.6% 17.3% Rolled 12.4% 20.5% 14
Slide 15: Profitability Improved Further
Profitability Improved Further Op. Expenses Op. Profit Operating profit increased by 1340 134 7% yoy. 1 1160 1160 Operating Margin at 39% is 523 398 4.7% higher than 34.3% in Q1 FY2005 Despite higher raw material 762 817 and power costs. Helped by improved Q1 FY05 Q1 FY06 realisations 15
Slide 16: Copper
COPPER
Slide 17: Copper Business: Q1 Highlights
Copper Business: Q1 Highlights Brownfield expansion at Copper plant from 250,000 tpa to 500,000 tpa commissioned in July 2005. Copper Cathode Production dipped by 11% from 48,218 MT to 42,894 MT on account of planned and preventive shutdowns of Smelters. The output of value added Continuous Ca
Slide 18: Copper: Production Performance
Copper : Production Performance Production Unit Q1 FY06 Q1 FY05 % Chg Copper Cathodes MT 42,894 48,218 -11.0% CC Rods MT 20,317 21,200 -4.2% DAP/NPK MT 65,908 67,844 -2.9% Sulphuric Acid MT 123,211 149,081 -17.4% Gold Kg 1,228 1,201 2.2% Silver Kg 8,031 8,024 0.1% Copper production suffered due to a
Slide 19: Copper: Sales Volumes
Copper : Sales Volumes Sales Volumes Unit Q1 FY06 Q1 FY05 % Chg Copper Cathodes & Others MT 21,996 27,015 -18.6% CC Rods MT 18,848 21,053 -10.5% DAP/NPK MT 61,566 71,873 -14.3% Sulphuric Acid MT 36,145 67,102 -46.1% Gold Kg 1,373 1,292 6.3% Silver Kg 7,856 8,024 -2.1% 19
Slide 20: Copper: Sales Revenues
Copper: Sales Revenues Product Q1 FY 06 Q1 FY 05 % Chg Copper Cathodes 334.01 370.21 -9.8% CC Rods 340.11 334.97 1.5% DAP/NPK 87.39 95.17 -8.2% Sulphuric Acid 6.57 9.52 -31.0% Gold 81.46 75.00 8.6% Silver 7.80 7.75 0.6% Others 10.31 10.64 -3.1% Total Sales 867.66 903.26 -3.9% of which Exports 327.90
Slide 21: Summary
Summary Strong performance amidst significant macro economic challenges Aluminium business at a new high Copper profitability improved despite lower volumes and reduction in duty and export incentives. Business outlook positive Domestic demand strong; promising export prospects for downstr
Slide 22: Thank You
Thank You
Slide 23: Press Release: Delivers Outstanding Performance
PRESS RELEASE Date: 29.07.2005 Q1 FY 2005-06 HINDALCO THE ADITYA BIRLA GROUP'S FLAGSHIP COMPANY Delivers Outstanding Performance Turnover Rs. 2,208 Crores 7.1% PBDIT Rs. 638 Crores 24.5% Net Profit Rs. 325 Crores 37.9% EPS (for the Quarter) Rs. 35 Quarter ended Quarter ended Change Financial Highlig
Slide 24: Press Release: Q1 FY06 Results
July 29, 2005 Press Release: Q1 FY06 Results Hindalco Industries Limited Hindalco, the emerging metals major and a flagship Company of the Aditya Birla Group, has posted a stellar performance for the 1st Quarter ended on June 30th, 2005. The Company’s Net Profit surged to Rs. 324.9 Crores from Rs. 2
Slide 25: Press Release: Operational Review
July 29, 2005 Press Release: Q1 FY06 Results Hindalco Industries Limited ramped up, it will position Birla Copper as the World’s largest single location custom smelter. Operational Review Aluminium Aluminium production rose considerably, driven by de-bottlenecking of the expanded capacities at Renuk
Slide 26: Press Release: Copper Operations
July 29, 2005 Press Release: Q1 FY06 Results Hindalco Industries Limited • Sulphuric Acid production at 115,852 MT against 149,081 MT moved in line with the smelter output. • The production of DAP & Complexes stood at 65,838 MT as compared to 67,844 MT in Q1’ FY05. • The output of Gold registered a
Slide 27: Press Release: Outlook
July 29, 2005 Press Release: Q1 FY06 Results Hindalco Industries Limited In so far as it relates to India, the growth prospects seem bright. The economy is on an upswing; and the Company expects the end-use segments like housing, construction, transportation and electrical sectors to provide the pus
Slide 28: Unaudited Financial Results, Quarter Ended 30 June 2005
HINDALCO INDUSTRIES LIMITED Regd. Office: "Century Bhavan",3rd Floor, Dr. Annie Besant Road, Worli, Mumbai-400 025 UNAUDITED (PROVISIONAL) FINANCIAL RESULTS FOR THE SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED QUARTER ENDED 30TH JUNE,2005 UNDER CLAUSE 41 OF THE LISTING AGREEMENT (Rupees in Mil
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