Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — FY2005 Earnings Presentation
32 slides from Hindalco Industries's earnings presentation, Apr 30, 2005
Slide 1: Hindalco Industries Limited: Fourth Quarter and Full Year 2004-05 Performance
Hindalco Industries Limited An emerging regional metals powerhouse Fourth Quarter and Full Year 2004-05 Performance Presentation to Investors 30th April 2005
Slide 2: Financial Results Fourth Quarter FY 2005
Hindalco: Financial Results Fourth Quarter FY 2005 (In Rs. Crores) Q4FY05 Q4FY04 Restated* Change Q4FY04 % Net Sales & Operating Revenues 2,515.7 1,889.4 2,330.9 7.9% Other Income 75.0 67.9 70.0 7.1% PBDIT 703.5 466.5 553.1 27.2% Interest & Finance Charges 38.0 52.7 57.5 -33.9% Depreciation 139.6 87
Slide 3: Financial Results Full Year FY 2005
Hindalco: Financial Results Full Year FY 2005 (In Rs. Crores) FY05 FY04 Restated* Change FY04 % Net Sales & Operating Revenues 9,523.3 6,208.4 7,651.0 24.5% Other Income 270.0 240.0 261.5 3.3% PBDIT 2,546.6 1,740.3 2,016.2 26.3% Interest & Finance Charges 170.0 177.2 195.4 -13.0% Depreciation 463.3
Slide 4: Other Income
Other Income ! Higher investible surplus Other Income (Rs. Crs) 270 " Average Investment: Rs.2,380 252 240 Crs " Annualised Yield o Pre Tax: 4.94% o Post Tax: 4.52% ! Higher interest on Income Tax Refund: Rs. 24.24 Crs FY04 FY04 FY05 ! Profit on sale of long term (Restated*) investments ____________
Slide 5: Interest & Financing Charges
Interest & Financing Charges " Gross interest reduced due 217 204 198 195 to repayment of 170 177 debentures and foreign currency loan. " Lower net interest cost due to higher capitalisation. Gross Net of Capitalisation FY04 FY04 (Restated*) FY05 _____________________________________________________
Slide 6: Taxes
Taxes " Total tax rate has decreased 571 Taxes (Rs. Crs.) from 32.8% to 30.2%. FY04 FY05 " However, Current Tax has increased # Increase in PBT by 53% 261 # Lower tax depreciation 146 # Removal of 80HHC benefit 76 " Consequently, effective current tax has increased from 21.0% to Current Deferred 29.
Slide 7: Segment Analysis
Segment Analysis Business Mix - FY 05 Revenue EBIT Capital Employed Aluminium 55% Aluminium 87% Aluminium Copper 59% 41% Copper 45% Copper 13% Aluminium Aluminium Copper Copper Q4 Q4FY05 FY05 FY05 FY05 Q4 Q4FY05 FY05 FY05 FY05 Net NetSales OperatingRevenue Sales&&Operating RevenueRs.Cr Rs.Cr 1457 14
Slide 8: Aluminium
ALUMINIUM
Slide 9: Aluminium: Production Performance
Aluminium: Production Performance Hindalco Restated* Production Unit FY05 FY04 FY04 % Chg Alumina MT 1,159,664 591,297 1,083,672 7.0% Primary Metal MT 411,831 323,184 392,719 4.9% Wire Rod MT 62,392 58,233 59,658 4.6% Rolled Products MT 178,496 77,069 154,938 15.2% Extrusions MT 26,599 17,469 26,927
Slide 10: Aluminium: Sales Volumes
Aluminium: Sales Volumes Aluminium Restated* Unit FY05 FY04 FY04 % Chg Alumina MT 322,828 - 379,616 -15.0% Primary Metal MT 162,233 171,433 167,360 -3.1% Wire Rod MT 62,841 58,778 60,284 4.2% Rolled Products MT 142,361 58,175 121,190 17.5% Extrusions MT 28,453 18,352 27,871 2.1% Foils MT 26,004 18,8
Slide 11: Aluminium: Sales Revenues
Aluminium: Sales Revenues (In Rs. Crores) Hindalco Restated* FY05 FY04 FY04 % Chg Alumina 581.93 - 474.91 22.5% Primary Metal 1,464.88 1,365.31 1,336.00 9.6% Wire Rod 590.80 499.06 512.56 15.3% Rolled Products 1,647.62 584.32 1,247.41 32.1% Extrusions 338.25 192.17 303.35 11.5% Foils 455.38 265.49 4
Slide 12: Higher Share of Value Added Products
Higher Share of Value Added Products Sales (in MTs) MTs) Sales (in Rs. Crs) Crs) 196,818 2,441 172,553 Rolled 1,952 Extrusion Foils 1,648 142,361 121,190 95,346 1,247 1,042 58,175 584 338 303 27,871 28,453 18,352 192 402 455 18,819 23,492 26,004 265 FY04 FY04 FY05 FY04 FY04 FY05 (Restated* ) (Restat
Slide 13: Aluminium Financial Results: 4th Quarter FY05
Aluminium Financial Results: 4th Quarter FY05 Hindalco Restated* (In Rs. Crores) Q4FY05 Q4FY04 Q4FY04 % Chg Net Sales & Operating Revenue 1,456.50 875.30 1,316.90 10.6% EBITDA 526.40 327.20 406.70 29.4% EBITDA Margin % 36.9% 38.6% 31.5% Depreciation 104.70 63.30 81.50 28.5% EBIT 421.70 263.90 325.20
Slide 14: Aluminium Financial Results: Full Year FY 2005
Aluminium Financial Results: Full Year FY 2005 Hindalco Restated* (In Rs. Crores) FY05 FY04 FY04 % Chg Net Sales & Operating Revenue 5,252.10 3,004.10 4,446.80 18.1% EBITDA 1,945.10 1,117.00 1,360.60 43.0% EBITDA Margin % 37.6% 37.8% 30.9% Depreciation 349.40 226.40 297.90 17.3% EBIT 1,595.70 890.60
Slide 15: Copper
COPPER
Slide 16: Copper: Production Performance
Copper : Production Performance Particulars Unit Q4 FY 05 Q4 FY 04 % Change Copper Cathodes MT 56,414 50,994 10.6 CC Copper Rods MT 21,371 24,211 (11.7) DAP/NPK MT 72,888 55,284 31.8 Gold Kg 877 2,273 (61.4) Silver Kg 8,853 9,403 (5.9) Particulars Unit FY 05 FY 04 % Change Copper Cathodes MT 217,136
Slide 17: Copper: Sales Volumes and Revenues
Copper: Sales Volumes and Revenues % % Particular Q4 FY05 Q4 FY04 FY05 FY04 Change Change Sales Volume (MT) Domestic 24134 29242 (17.5) 106395 98404 8.1 Physical Exports 29682 22683 30.9 112001 96726 15.8 Total 53816 51925 3.6 218396 195130 11.9 Revenues (Rs. Crs.) -Copper 865.5 778.4 11.2 3419.5 24
Slide 18: Operating Profitability
Operating Profitability Major reasons of Variance 400.8 367.7 4th Quarter * Higher TCRC * Higher DAP sales * Better Operating Efficiencies 99.6 75.5 Full Year * Impact Of Tariff Changes * Higher Coal & Fuel Prices Fourth Quarter Financial Year * Rupee Appreciation * Higher Production FY 04 FY 05 * B
Slide 19: Copper: Financial Results
Copper : Financial Results Q4 FY 05 Q4 FY 04 Change FY 05 FY 04 Change Particulars (Rs. Cr.) Actual Actual (%) Actual Actual (%) Sales Volume (MT) 53816 51925 3.6 218396 195130 11.9 Net Sales 1062.6 1014.1 4.8 4271.2 3212.6 32.9 EBITDA 99.6 75.5 31.9 367.7 400.8 (8.3) EBITDA MARGIN % 9.4% 7.4% 25.9
Slide 20: Hindalco: Balance Sheet Highlights
Hindalco: Balance Sheet Highlights (In Rs. Crs) FY-05 FY-04 Net Fixed Assets 6,927 5,208 Net Current Assets 1,494 1,519 Strategic Investments 1,046 2,134 Cash & Cash Equivalent 3,120 1,556 12,587 10,418 Shareholders Equity 7,657 6,858 Total Borrowings 3,800 2,565 Deferred Tax Balance 1,130 995 12,58
Slide 21: Thank You
Thank You
Slide 22: Annexures
ANITYA RIRIA BROAIP Annexures
Slide 23: Production Performance: Fourth Quarter FY 2005
Production Performance: Fourth Quarter FY 2005 Hindalco Restated* Production Unit Q4FY05 Q4FY04 Q4FY04 % Chg Alumina MT 291,019 148,612 268,912 8.2% Primary Metal MT 106,800 83,282 100,796 6.0% Wire Rod MT 16,121 15,471 15,471 4.2% Rolled Products MT 47,007 22,328 41,763 12.6% Extrusions MT 8,225 4,
Slide 24: Sales Volumes: Fourth Quarter FY 2005
Sales Volumes: Fourth Quarter FY 2005 Hindalco Restated* Unit Q4FY05 Q4FY04 Q4FY04 % Chg Alumina MT 74,582 - 108,241 -31.1% Primary Metal MT 48,948 43,980 44,970 8.8% Wire Rod MT 16,560 16,050 16,058 3.1% Rolled Products MT 42,090 18,957 37,040 13.6% Extrusions MT 8,540 5,475 7,929 7.7% Foils MT 6,5
Slide 25: Sales Revenues: Fourth Quarter FY 2005
Sales Revenues: Fourth Quarter FY 2005 (In Rs. Crores) Hindalco Restated* Q4FY05 Q4FY04 Q4FY04 % Chg Alumina 144.26 - 143.20 0.7% Primary Metal 385.82 372.43 380.17 1.5% Wire Rod 157.89 142.15 142.25 11.0% Rolled Products 485.78 193.33 386.97 25.5% Extrusions 104.00 57.71 86.69 20.0% Foils 120.42 73
Slide 26: Press Release: FY 2004-05 Results Reach a New Peak
PRESS RELEASE Date: 30.04.2005 HINDALCO THE ADITYA BIRLA GROUP'S FLAGSHIP COMPANY FY 2004-05 RESULTS REACHES A NEW PEAK NET PROFIT FOR FY 2005 at Rs. 1,329 Crores Expansion of Copper Smelter to 500,000 TPA completed Onto a High Growth Trajectory DIVIDEND Rs. 20 per Share Payout Increased by 23% Q4 F
Slide 27: Sales & Operating Revenue, Profits, Financial Performance
Sales & Operating Revenue Net Sales and operating revenue of Hindalco in the 4th Quarter stand at Rs. 2,516 Crores, vis-à-vis Rs. 1,889 Crores of last year. Of this, the Aluminium business has recorded sales of Rs. 1,457 Crores (boosted by inclusion of Indal’s sales) vis –a- vis Rs. 875 Crores last
Slide 28: Dividend, Fund Raising, Operational Review
On a proforma basis, if the profits for last year are restated after incorporating the profits of the business transferred from Indal, the net profit in FY 2005 has shown an impressive growth of 36% on a comparable base. Dividend The Directors have recommended a dividend of Rs. 20 per equity share (
Slide 29: Copper Production
Copper Q4 FY % % Particulars Unit Q4 FY 05 FY 05 FY 04 04 Change Change Copper Cathodes MT 56414 50994 10.6 217136 186611 16.4 CC Copper Rods MT 21371 24211 (11.7) 88298 91380 (3.4) DAP/NPK MT 72888 55284 31.8 286264 231903 23.4 Gold Kg 877 2273 (61.4) 5155 6907 (25.4) Silver Kg 8853 9403 (5.9) 3659
Slide 30: Outlook
Aluminium expansion cum modernisation at Hirakud on track Concurrent to the Alumina expansion, Hindalco is also augmenting it’s smelter and captive power generation capacity at Hirakud. Metal capacity is being enhanced from 65,000 TPA to 146,000 TPA. The smelter modernization through conversion from
Slide 31: Outlook: Hindalco
Outlook : Hindalco The company remains confident of reaping a rich harvest from it’s three- pronged strategy of growth with vertical integration, thrust on branding and a continued focus on value added products. Hindalco foresees an encouraging business outlook and remains committed to pursuing valu
Slide 32: Audited Financial Results and Segment-wise Revenue, Quarter Ended 31 March 2005
HINDALCO INDUSTRIES LIMITED Regd. Office: "Century Bhavan",3rd Floor, Dr. Annie Besant Road, Worli, Mumbai-400 025 AUDITED FINANCIAL RESULTS FOR THE SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED QUARTER ENDED 31ST MARCH,2005 UNDER CLAUSE 41 OF THE LISTING AGREEMENT (Rupees in Million) (Rupees i