10 February, 2021
ShareStandout performance across businesses by leveraging market demand, strong operational efficiencies and improved macros
Consolidated Business EBITDA up 40 per cent YoY and 12 per cent sequentially
Consolidated PAT at ₹1,877 crore, up 77 per cent YoY and nearly 5 times sequentially
*As per US GAAP; Novelis FY21 numbers include those of Aleris.
1Tax-effected special items include purchase price accounting adjustments, restructuring & impairment costs and metal price lag in Novelis.
Mumbai: Hindalco Industries Limited, the Aditya Birla Group metals flagship, today announced consolidated results for the quarter ended December 31, 2020. The Company reported a consolidated PAT of ₹1,877 crore, up 77 per cent YoY, and a nearly five-fold sequential increase. The results were driven by a strong performance by Novelis and India Aluminium Business, supported by higher volumes and better product mix, lower input costs, stability in operations and cost saving actions. The Copper Business maintained its performance sequentially in Q3 FY21 versus Q2 FY21. Novelis reported an all-time high EBITDA as well as EBITDA per ton, as a result of continued demand for innovative, sustainable aluminium solutions and outstanding operational performance across its expanded business.
Consolidated Financial Highlights for the Quarter Ended December 31, 2020
Particulars | Q3 FY20 | Q2 FY21 | Q3 FY21 | 9M FY20 | 9M FY21 |
---|---|---|---|---|---|
Revenue from Operations | 29,197 | 31,237 | 34,958 | 88,826 | 91,478 |
Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) | |||||
Novelis* | 2,446 | 3,392 | 3,711 | 7,662 | 9,022 |
Aluminium | 1,045 | 1,066 | 1,323 | 2,707 | 3,245 |
Copper | 256 | 208 | 202 | 870 | 447 |
All Other Segments | (14) | 6 | 6 | (32) | 13 |
Business EBITDA | 3,733 | 4,672 | 5,242 | 11,207 | 12,727 |
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments | (57) | 499 | 279 | 156 | 324 |
EBITDA | 3,676 | 5,171 | 5,521 | 11,363 | 13,051 |
Finance Costs | 889 | 982 | 861 | 2,768 | 2,835 |
PBDT | 2,787 | 4,189 | 4,660 | 8,595 | 10,216 |
Depreciation & Amortisation (including impairment) | 1,302 | 1,838 | 1,655 | 3,786 | 5,044 |
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax) | 2 | - | 2 | 4 | 5 |
PBT before Exceptional Items and Tax | 1,487 | 2,351 | 3,007 | 4,813 | 5,177 |
Exceptional Income/ (Expenses) (Net) | (6) | 71 | (178) | (284) | (526) |
Profit Before Tax (After Exceptional Item) | 1,481 | 2,422 | 2,829 | 4,529 | 4,651 |
Tax | 419 | 637 | 808 | 1,430 | 1,414 |
Profit/ (Loss) from Continuing Operations | 1,062 | 1,785 | 2,021 | 3,099 | 3,237 |
Profit/ (Loss) from Discontinued Operations | - | (1,398) | (144) | - | (1,682) |
Profit/ (Loss) After Tax | 1,062 | 387 | 1,877 | 3,099 | 1,555 |
*As per US GAAP FY21 Hindalco consolidated financial statements include Aleris |
Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries Ltd., said, "Our Q3 results flag a return to business at pre-COVID levels with resurgent demand globally. Novelis achieved record shipments, driven by strong demand across product end markets. The India Business delivered an excellent performance with Aluminium value-added products continuing to record higher volumes. Along with market performance, we have strengthened our balance sheet which shows in a significant improvement in the consolidated net debt to EBITDA ratio. The inclusion of the Aleris business has positively impacted the overall top line and EBITDA, with realisation of synergies at $54 million on a run-rate basis in Q3.
Our performance is a reflection of our sustainability-led approach to business. Hindalco has been recognised as the world's most sustainable aluminium company in the 2020 DJSI CSA ranking."
Novelis recorded its best-ever quarterly adjusted EBITDA of $501 million (vs $343 million), up 46 per cent YoY, on the back of higher volumes and improved margins. Adjusted EBITDA per ton was at an all-time high of $537 in Q3 FY21 (vs $430/ton), up 25 per cent YoY. Novelis' Net Income (excluding tax-effected special items1) was at a record high of $209 million, up 58 per cent YoY, partially offset by higher depreciation and amortization associated with the acquisition of Aleris. Revenue was $3.2 billion (vs $2.7 billion), up 19 per cent YoY, due to higher shipments, global aluminium prices and market premiums. Total shipments of flat rolled products (FRPs) were at an all-time high of 933 Kt (vs 797Kt), up 17 per cent YoY, with the addition of the acquired Aleris business and strong demand across end-product markets.
EBITDA stood at ₹1,323 crore in Q3 FY21, compared with ₹1,045 crore for Q3 FY20, an increase of 27 per cent YoY, primarily due to favourable macros and lower input costs. EBITDA margin of 25 per cent was one of the best in the industry. Revenue was ₹5,294 crore in Q3 FY21 vs ₹5,483 crore in the prior year period. Aluminium India Business recorded metal production of 315 Kt (vs 328 Kt last year). Aluminium metal sales were at 315 Kt (vs 328 Kt in Q3 FY20). Aluminium VAP (excluding wire rods) sales volumes at 80 Kt (vs 75 Kt), up 7 per cent YoY, were driven by a sharp recovery in the domestic market. VAP sales as a percentage of total metal sales have risen to 25 per cent this quarter vs 21 per cent in the same quarter last year.
Copper Cathode production at 51 Kt in Q3 FY21 (vs 87 Kt in Q3 FY20), was lower YoY mainly due to planned maintenance shutdown in one of the smelters. While overall copper metal sales were lower at 73Kt (vs 84 Kt in Q3 FY20), Copper Continuous Cast Rod (CCR) sales in Q3 FY21 were up 12 per cent YoY at 65 Kt. DAP (fertiliser) sales volume was at an all-time high at 156 Kt, up 135 per cent YoY, on the back of continuous robust demand. EBITDA for the Business stood at ₹202 crore compared to ₹256 crore in Q3 FY20. Revenue from the Copper Business was ₹6,133 crore this quarter, up 28 per cent YoY, primarily due to higher LME.
Hindalco reported an excellent quarterly consolidated operational and financial performance in Q3 FY21. Business EBITDA stood at ₹5,242 crore (vs ₹3,733 crore), up 40 per cent YoY, driven by the best-ever quarterly performance by Novelis and a sharp recovery in all relevant markets in India Aluminium business. Consolidated Revenue for the third quarter stood at ₹34,958 crore (vs ₹29,197 crore), up 20 per cent YoY. Consolidated PAT was ₹1,877 crore, compared to ₹1,062 crore in Q3 FY20, a jump of 77 per cent YoY. The consolidated net debt to EBITDA ratio has improved significantly to 3.09x on December 31, 2020, from a peak of 3.83x on June 30, 2020.
Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. A $16.7 billion metals powerhouse, Hindalco is the world's largest aluminium company by revenues, and a major player in copper. It is also one of Asia's largest producers of primary aluminium.
Guided by its purpose of building a greener, stronger, smarter world, Hindalco provides innovative solutions for a sustainable planet. Its wholly-owned subsidiary Novelis Inc. is the world's largest producer of aluminium beverage can stock and the largest recycler of used beverage cans (UBCs).
Hindalco's copper facility in India comprises a world-class copper smelter, downstream facilities, a fertiliser plant and a captive jetty. The copper smelter is among the world's largest custom smelters at a single location. Hindalco's global footprint spans 47 manufacturing units across 10 countries.
Registered Office:
Ahura Centre,
1st Floor, B Wing,
Mahakali Caves Road Andheri (East),
Mumbai 400 093
Website: www.hindalco.com; E mail: hindalco@adityabirla.com;
Corporate Identity No. L27020MH1958PLC011238
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