10 February 2021

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Standout 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

Key Highlights of Q3 FY21

• Consolidated Business EBITDA at ₹5,242 crore, up 40 per cent YoY; up 12 per cent QoQ
• Consolidated PAT at ₹1,877 crore, up 77 per cent YoY; up 385 per cent sequentially
• All-time high overall shipments by Novelis at 933 Kt, up 17 per cent YoY and 1 per cent QoQ
• All-time high Novelis Adjusted EBITDA¹ at $501* million, up 46 per cent YoY and 10 per cent QoQ
• All-time high Adjusted EBITDA per ton¹ at Novelis at $537, up 25 per cent YoY and 9 per cent QoQ
• Aluminium India Business EBITDA at ₹1,323 crore, up 27 per cent YoY; up 24 per cent QoQ
• EBITDA margin in Aluminium India Business at 25 per cent, up 593 bps YoY
• India Business PAT at ₹495 crore, up 90 per cent YoY; 51 per cent increase sequentially
• Consolidated Net Debt to EBITDA at 3.09x as on December 31, 2020 (vs. 3.83x as of June 30, 2020)
• Ranked the world’s most sustainable aluminium company in the Dow Jones Sustainability Indices 2020

^*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

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.”

Business segment performance in Q3 FY21 (vs. Q3 FY20)

Novelis (including Aleris)

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.

Aluminium India

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

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.

Consolidated Performance

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.

Business Updates & Recognition

• Aleris Integration work continues with $54 million run-rate acquisition cost synergies achieved  through end of Q3FY21.
• Novelis’ expansion in Brazil to support beverage can business continues to progress with commissioning expected in mid-FY22.
• Novelis entered Alumobility partnership with Constellium to drive a more efficient, sustainable and purposeful mobility future.
• A 34,000-tonne per annum state-of-the-art aluminium extrusion project in Silvassa, at an investment of ₹730 crore, was flagged-off.
• Utkal Alumina’s capacity expansion of 500 Kt is expected to be commissioned in Q1 FY22.
• Hindalco is the Dow Jones Sustainability Index (DJSI) Aluminium Industry Leader, globally, based on its S&P Global CSA Score for 2020.  Hindalco got a total score of 75 points against the industry average of 51.
• Mahan’s ‘Akshay Ghaat’ project in Madhya Pradesh, wins CII recognition for Excellence in Water Management. Project Akshay Ghaat helped over 10,000 farmers across 14 gram panchayats become self-sustainable in agriculture.

About Hindalco Industries Limited

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

Disclaimer: Statements in this “Media Release” describing the company’s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.