Hindalco Q3 FY 2022 Research Tear Sheet

Hindalco is a subsidiary of Aditya Birla Group. It is an Indian aluminum and copper manufacturing company. It was incorporated in the year 1958. The headquarter is located in Mumbai, Maharashtra India. As per data Hindalco is one of the world’s largest aluminum rolling companies and one of the biggest producers of primary aluminum in Asia.  Renukut unit was set up in 1962 and  the company began production of 20 thousand metric tons per year of aluminum metal and 40 thousand metric tons per year of alumina. In 1989 the company was restructured and renamed Hindalco.

Key Financial Highlights

(₹ Crore)	Q3 FY21	Q3 FY 22
Revenue from Operations	34,958	50,272
EBITDA	5,521	7,624
Profit/ (Loss) After Tax	1,877	3,675

 Consolidated PAT increased by 96% YOY to₹3,675 crore.

Consolidated EBITDA increased 38% YOY to ₹7,624 crore.

 Novelis Adjusted EBITDA at $506* million and EBITDA per ton at $544*, both up by 1% YoY.

Novelis Net Income from continuing operations increased 33% YoY to $259 million.

Aluminium India EBITDA at ₹3,376 crore, increased 131% YoY. EBITDA margins of 41%.

Novelis

Novelis quarterly adjusted EBITDA increased 1%YOY  to $506 million driven by strong product pricing and mix as well as favourable metal benefits. Adjusted EBITDA per ton is  $544 in Q3 FY22, increased by  1% YoY. Novelis’ Net Income increased by 33% YoY to $4.3 billion driven by higher global aluminium prices.

Aluminium India

EBITDA increased 131% YoY to ₹3,376 crore. EBITDA margins were at 41% and continue to be the best in the industry. Total Revenue from aluminium business is ₹8,243. Aluminium metal sales incr eased 3% YoY at 325 Kt. Aluminium VAP increased  by 8% Y-O-Y to 86 Kt. VAP sales, as a percentage of total metal sales, were 27% this quarter.

Copper

Copper Cathode production increased by 99% to 102 Kt in Q3 FY22. Copper Continuous Cast Rod (CCR) sales in Q3 FY22 were up 9% YoY, at 71 Kt. EBITDA for the business stood at ₹390 crore in Q3 FY22 increased 63% Y-O-Y.  Revenue from the Copper Business was ₹10,255 crore this quarter, increased by 67% Y-O-Y.

Conference Call Highlights:

Management Updates

The company has achieved 81% of total recycling and re-use of all waste generated in the 9M-FY22.

Novelis recorded quarterly shipments of 930 Kt in Q3 FY2022.

Hindalco has successfully renewed its 5.35 million tons of coal linkages with Coal India to ensure resource security.

Consolidated Net Debt to EBITDA was at a strong 1.62x on Q3 FY 2022.

$375 million investment made to expand its rolling and recycling capabilities in Zhenjiang, China.

Business Updates

Hindalco acquired Hydro’s 15 Kt high-end extrusions facility at Kuppam.

Hindalco retained its position as the world’s most sustainable aluminium company in the Dow Jones Sustainability Index 2021.

Hindalco retains position as the world’s most sustainable aluminium company in DJSI 2021.