Hindalco Result Updated

8/3/2019 Hindalco Result Updated

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Please refer to important disclosures at the end of this report 1

Standalone (` cr) Novelis (US $mn)Particulars 3QFY12 3QFY11 yoy % 3QFY12 3QFY11 yoy %Net sales 6,590 5,918 11.4 2,880 2,560 12.5EBITDA* 716 740 (3.3) 213 225 (5.3)

% margin 10.9 12.5 (165)bp 7.4 8.8 (139)bp

Adj. PAT 452 460 (1.9) (12) (46) -Source: Company, Angel Research; Note: *Adjusted EBITDA for Novelis

For 3QFY2012, Hindalcos standalone profit declined by 1.9% yoy while Novelis

reported a net loss of US$12mn. We recommend Neutral on the stock.Aluminium segment drags standalone profits: Hindalcos standalone net salesincreased by 11.4% yoy to `6,590cr mainly on account of higher volumes in

both, aluminium and copper segments. However, aluminium segment EBIT

decreased by 33.4% yoy to `310cr due to increase in input costs (mainly coal and

crude derivatives). Nevertheless, copper segment EBIT rose by 51.1% yoy to

`216cr due to higher treatment and refining charges and by-product credits.

Overall, Hindalcos EBITDA decreased by 3.3% yoy to `716cr. Net profit

decreased by 1.9% yoy to `452cr.

Low demand in Europe dents Novelis performance: Novelis net sales decreasedby 4.0% yoy to US$2.5bn due to decrease in volumes as well as aluminium

price. Shipments of aluminum rolled products decreased 9.2% yoy to 682ktprimarily due to destocking in Europe. Adjusted EBITDA decreased by 10.5% yoy to

US$213mn on account of higher costs and lower volumes. Novelis reported a net

loss of US$12mn during 3QFY2012 compared to a loss of US$46mn in 3QFY2011.

Outlook and valuation: Hindalco is expanding its capacity three-fold over the nextfour years. However, there is lack of clarity over production from Mahan coal

block on account of environmental issues. Without captive coal block, the

upcoming Mahan smelter (expected to commission in 1QFY2013) is expected to

face cost pressures. Further, lower aluminium prices and higher costs are

expected to result in decline in FY2013 PAT by 3.8%. Hence, we recommendNeutral on the stock.Key financials (Consolidated)Y/E March (` cr) FY2010 FY2011 FY2012E FY2013ENet sales 60,563 71,801 78,421 81,515% chg (7.4) 18.6 9.2 3.9

Net profit 3,925 2,456 3,133 3,015% chg 708.9 (37.4) 27.6 (3.8)

EPS (`) 20.4 12.8 16.4 15.8EBITDA margin (%) 16.1 11.1 10.0 9.9

P/E (x) 7.8 12.4 9.7 10.1

P/BV (x) 1.4 1.0 1.0 0.9

RoE (%) 20.9 9.7 10.3 9.1

RoCE (%) 14.0 9.2 7.4 6.8

EV/Sales (x) 0.7 0.6 0.6 0.6

EV/EBITDA (x) 4.2 5.6 5.9 6.1

Source: Company, Angel Research

NEUTRALCMP `159

Target Price -

Investment Period -

Stock Info

Sector

Bloomberg Code HNDL@IN

Shareholding Pattern (%)

Promoters 32.1

MF / Banks / Indian Fls 15.5

FII / NRIs / OCBs 34.7

Indian Public / Others 17.8

Abs. (%) 3m 1yr 3yr

Sensex 2.7 1.4 86.0

Hindalco 18.0 (27.7) 246.2

1

17,831

5,412

HALC.BO

30,393

1.4

225/111

1,253,457

Base Metals

Avg. Daily Volume

Market Cap (` cr)

Beta

52 Week High / Low

Face Value (`)

BSE Sensex

Nifty

Reuters Code

Bhavesh ChauhanTel: 022- 3935 7800 Ext: [email protected]

HindalcoPerformance highlights

3QFY2012 Result Update | Base Metals

February 9, 2012


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Hindalco | 3QFY2012 Result Update

February 9, 2012 2

Exhibit 1:3QFY2012 performance (Standalone)

(` cr) 3QFY12 3QFY11 yoy % 2QFY12 qoq %Net sales 6,590 5,918 11.4 6,220 5.9Raw material 4,397 3,989 10.2 4,103 7.2% of net sales 66.7 67.4 66.0

Power and fuel 738 551 34.1 753 (1.9)

% of net sales 11.2 9.3 12.1

Staff cost 304 251 20.9 292 4.3

% of net sales 4.6 4.2 4.7

Other expenses 493 443 11.3 455 8.3

% of net sales 7.5 7.5 7.3

Total expenditure 5,932 5,234 13.3 5,603 5.9% of net sales 90.0 88.5 90.1

Operating Income 57 57 58.3 51 10.4

EBITDA 716 740 (3.3) 669 7.0% of net sales 10.9 12.5 10.8

Interest 79 52 53.8 68 17.5

Depreciation 175 171 2.4 174 0.4

Other income 90 61 48.6 176 (48.9)

Exceptional Items - - -

PBT 552 578 (4.6) 604 (8.6)% of net sales 8.4 9.8 9.7

Provision for tax 100 118 (15.2) 101 (0.9)

% of PBT 18.2 20.4 16.8

PAT 452 460 (1.9) 503 (10.1)Source: Company, Angel Research

Exhibit 2:Standalone 3QFY2012 Actual vs. Angel estimates

(` cr) Actual Estimate Variation (%)Net sales 6,590 5,909 11.5

EBITDA 716 642 11.4

EBITDA margin (%) 10.9 10.9 (1)bp

Adj. net income 452 480 (5.9)



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February 9, 2012 3

Hindalco (Standalone) Key result highlights

Hindalcos standalone net sales increased 11.4% yoy to `6,590cr (above our

estimate of `5,909cr) mainly on account of higher volumes in both, aluminium

and copper segments. However, aluminium segment EBIT decreased by 33.4% yoy

to `310cr due to increase in input costs (mainly coal and crude derivatives).

Nevertheless, copper segment EBIT rose by 51.1% yoy to `216cr due to higher

treatment and refining charges and by-product credits. Overall, Hindalcos EBITDA

decreased by 3.3% yoy to `716cr and EBITDA margin slipped by 165bp yoy to

10.9% during 3QFY2012. Interest expenses grew by 53.8% yoy to `79cr while

other income grew 48.6% yoy to `90cr. Consequently, net profit decreased by only

1.9% yoy to `452cr (below our estimate of `480cr).

The company has delayed commissioning of Mahan smelter by a quarter to1QFY2013. Hindalcos board has approved the issuance of ~15cr warrants to the

promoters on a preferential basis to partly fund its expansion projects.

Segmental performance

Copper cathode and CC rods production grew by 9.4% and 42.3% yoy to 88k and

38k, respectively.

Exhibit 3:Copper Quarterly production trend

(tonnes) 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 yoy % qoq %Copper cathodes 80,224 84,961 73,192 74,588 87,748 9.4 17.6

CC rods* 26,996 33,088 33,701 33,972 38,426 42.3 13.1

Source: Company, Angel Research; Note: *Own production

In aluminium segment alumina, aluminium, wire rods and flat products production

increased by 7.1%, 7.8%, 6.7% and 20.4% yoy to 343k, 146k, 25k and 56k,

respectively.

Exhibit 4:Aluminium Quarterly production trend

(tonnes) 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 yoy % qoq % Alumina 320,310 344,077 334,587 332,383 343,086 7.1 3.2

Aluminium metal 135,829 138,720 140,387 143,315 146,374 7.8 2.1

Wire rods 23,672 23,152 23,403 24,442 25,247 6.7 3.3

FRP/foil 46,188 48,218 49,544 52,439 55,598 20.4 6.0

Extrusions 9,292 7,319 7,321 7,154 7,190 (22.6) 0.5



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February 9, 2012 4

Exhibit 5:Segmental performance

(` cr) 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 yoy % qoq % Aluminium 1,977 2,211 2,093 2,213 2,23613.1 1.0

Copper 4,000 4,637 3,940 4,062 4,418 10.5 8.8Gross revenue 5,977 6,848 6,033 6,275 6,654 11.3 6.0

Less: Inter-seg. revenue (2) (2) (2) (3) (7) 272.2 134.0

Net sales 5,975 6,846 6,031 6,272 6,647 11.3 6.0 Aluminium 465 562 599 429 310(33.4) (27.7)

Copper 143 206 145 148 216 51.1 46.3

EBIT 608 768 744 576 526 (13.5) (8.8)EBIT margin (%)

Aluminium 23.5 25.4 28.6 19.4 13.9 - -

Copper 3.6 4.4 3.7 3.6 4.9 - -


The aluminium segments EBIT margin stood at 13.9% in 3QFY2012 compared to

23.5% in 3QFY2011. Aluminium segment EBIT decreased by 33.4% yoy to `310cr

due to increase in input costs (mainly coal and crude derivatives).

The copper segments EBIT margin stood at 4.9% in 3QFY2012 compared to 3.6%

in 3QFY2011. Copper segment EBIT rose by 51.1% yoy to `216cr due to higher

treatment and refining charges and by-product credits.


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February 9, 2012 5

Exhibit 6:Novelis 3QFY2012 performance

(US $mn) 3QFY12 3QFY11 % yoy 2QFY12 % qoqNet revenue 2,880 2,560 12.5 2,880 0.0Cost of goods sold 2,224 2,232 (0.4) 2,549 (12.8)(% of net sales) 77.2 87.2 88.5

Gross profit 238 328 (27.4) 331 (28.1)(% of net sales) 8.3 12.8 11.5

SG&A expenses 95 94 1.1 91 4.4

(% of net sales) 3.3 3.7 3.2

R&D expenses 10 9 11.1 12 (16.7)

(% of net sales) 0.3 0.4 0.4

EBITDA 213 225 (5.3) 228 (6.6)EBITDA margin (%) 7.4 8.8 7.9

Restructuring charges 1 20 (95.0) 11 (90.9)

Depreciation 79 100 (21.0) 81 (2.5)

EBIT 53 105 (49.5) 136 (61.0)(% of net sales) 1.8 4.1 4.7

Other income/(Expense) (1) (16) (93.8) 4

Net Interest expense 74 42 76.2 14 428.6

Unreal. gain/(loss) on derivative - 30 -

Exceptional items (63) (74) -

PBT (22) 3 - 126 -(% of net sales) (0.8) 0.1 4.4

Taxes (10) 33 - (7) -

(% of PBT) - 1,100.0 (5.6)

PAT (12) (30) - 133 -(% of net sales) (0.4) (1.2) 4.6

Less: Profit from associates - 5 - 3 -

Less: Minority interest - 11 - 10 -

Net income (12) (46) - 120 -Source: Company, Angel Research


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February 9, 2012 6

Hindalco (Novelis) Key result highlights

Novelis net sales decreased 4.0% yoy to US$2.5bn due to decrease in volumes as

well as aluminium price. Shipments of aluminum rolled products decreased 9.2%

yoy to 682kt primarily due to destocking in Europe on the back of economic

uncertainty and weakness in the electronics business in Asia.

Exhibit 7:Shipment across geographies

(kt) 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 yoy % qoq %Total sales 751 800 767 750 682 (9.2) (9.0)North America 267 283 288 276 250 (6.4) (9.6)

Europe 225 258 237 244 202 (10.2) (17.2)

Asia 148 152 152 131 123(16.9) (6.3)

South America 111 107 90 98 107 (3.6) 9.2


Adjusted EBITDA decreased 10.5% yoy to US$213mn on account of higher costsand lower volumes. Also, EBITDA/tonne declined 1.0% yoy to US$312 during thequarter. Novelis reported a net loss of US$12mn during 3QFY2012 compared toa loss of US$46mn in 3QFY2011. The company is witnessing recovery in demandduring 4QFY2012; it remains on track to achieve EBITDA of ~US$1bn duringFY2012.

Exhibit 8:Novelis EBITDA margin trend Exhibit 9:Novelis Net profit trend

Source: Company, Angel Research Source: Company, Angel Research

0

2

4

6

8

1012

14

0

50

100

150

200

250300

350

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(%)

(US$mn)

Adj. EBIT DA (LH S) A dj. EBITD A margin ( RH S)

(4)

(2)

0

2

4

6

(60)

(40)

(20)

0

20

40

60

80

100120

140

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(%)

(US$mn)

Net profit (LHS) Net profit margin (RHS)


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February 9, 2012 7

Exhibit 10:Novelis Adj. EBITDA/tonne trend


Investment rationale

Aluminium capacity to increase three folds in the next four yearsHindalco aims to increase its aluminium capacity by almost three-folds in the next

four years to 1.5mn tonnes. Consequently, we expect production and sales volume

to record significant growth over FY201114. Most of these new capacities will be

backed by captive bauxite and coal mines; however, there is lack of clarity on

production from Mahan coal block on account of environmental issues currently.

0

50

100

150

200

250

300

350

400

0

50

100

150

200

250

300

350

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(US$/tonne)

(US$mn)

Adj. EBITDA Adj. EBITDA/tonne (RHS)


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February 9, 2012 8

Exhibit 11:Expansion projects details

Project Progress Expected completionMahan Aluminium, MP

Project finance complete; forest clearance for coal block awaited, but applied for taperinglinkage 1QFY2013

Utkal Alumina, Orissa Project finance complete 2H CY 2012

Aditya Aluminium, OrissaForest stage-II clearance received; Site activities at advanced stage

Early 2013

Aditya Refinery, Orissa Majority land acquired; construction power line energized 2014

Jharkhand Aluminium Land acquisition started; Water allocated by State government 2015

Hirakud Canstock Plant Progressing well Early 2012


Exhibit 12:Smelting capacity to scale up gradually


Exhibit 13:Refining capacity to grow 3.0x


Novelis to expand its capacityNovelis has plans to increase its capacity by ~20% by FY2014E. Capacity at its

Pinda operations in Brazil is being increased by ~220kt by CY2012, while the

balance will be through debottlenecking (a 3-4% increase in capacity every year).

Further, Novelis plans to invest US$400mn to expand its South Korean aluminum

rolling and recycling operations by 1mtpa. We expect steady EBITDA of ~US$1bn

per year from Novelis, given its stable conversion business.

390

213

359

359

359 1680

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Renukhoot Hirakood Mahan Aditya Jharkhand Total

(ktpa)

1500

1500

3000

4500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Existing Utkal Aditya Total

(ktpa)


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February 9, 2012 9

Exhibit 14:Novelis to generate US$1bn annually


Outlook and valuation We believe Hindalco is well placed to benefit from a) its aluminium expansion

plans (capacity increasing by nearly three folds in the next four years),

b) low production cost at its new capacities and c) steady capacity expansion

at Novelis.

However, there is lack of clarity over production from Mahan coal block. Without

captive coal block, the upcoming Mahan smelter (expected to commission in

1QFY2013) is expected to face cost pressures. Further, lower aluminium prices

and higher costs are expected to result in decline in FY2013 PAT by 3.8%.

Moreover, the 18% increase in the stock price over the past three months discounts

the near-term growth prospects of Hindalco. We derive a SOTP target price of`152 and recommend Neutral on the stock.Exhibit 15:SOTP valuation

FY2013 EBITDA (` cr) Multiple EV (` cr)Hindalco (Standalone) 3,256 6.0 19,539

Novelis 4,820 5.5 26,511

Total EV 46,049Less: Net debt (FY13E) 18,827

Value of investments @25% discount 2,22Value per share 152Source: Angel Research

Exhibit 16:EPS - Angel forecast vs. consensus

Year (`) Angel forecast Bloomberg consensus Variation (%)FY12E 16.4 16.4 (0.2)

FY13E 15.8 17.0 (7.3)

Source: Bloomberg, Angel Research

0

2

4

6

8

10

12

14

850

900

950

1,000

1,050

1,100

FY10 FY11 FY12E FY13E

(%)

(US$mn)

EBITDA EBITDA margin


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February 9, 2012 10

Exhibit 17:EV/EBITDA band


Exhibit 18:P/E band


Exhibit 19:P/BV band


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Apr-06Nov-06Jun-07 Jan-08 Aug-08Mar-09Oct-09May-10Dec-10 Jul-11 Feb-12

(`cr)

2x 5x 8x 11x 14x

0

100200

300

400

500

600

700

800

900

1,000

Apr-06 Nov-06 Jun-07 Jan-08 Aug-08 Mar-09 Oct-09May-10Dec-10 Jul-11 Feb-12

(`)

5x 15x 25x 35x

0

50

100

150

200

250

300

350

Apr-06 Nov-06 Jun-07 Jan-08 Aug-08 Mar-09 Oct-09 May-10Dec-10 Jul-11 Feb-12

(`)

0.2x 0.7x 1.2x 1.7x


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February 9, 2012 11

Exhibit 20:Recommendation summary

Companies CMP Target price Reco. Mcap Upside P/E (x) P/BV (x) EV/EBITDA (x) RoE (%) RoCE (%)(`) (`) (` cr) (%) FY13E FY13E FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E

Hindalco 159 - Neutral 30,393 - 9.7 10.1 1.0 0.9 5.9 6.1 10.3 9.1 7.4 6.8Nalco 63 53 Sell 16,211 (16) 22.9 19.5 1.4 1.3 12.0 9.0 6.2 7.0 3.8 5.3

Sterlite 130 138 Accum. 43,655 6 8.2 7.0 0.9 0.8 3.0 2.4 12.1 12.7 11.3 11.5

Hind. Zinc 146 - Neutral 61,753 - 11.3 9.6 2.3 1.9 7.5 5.6 22.0 21.3 20.9 20.4



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February 9, 2012 12

Profit & Loss Statement (Consolidated)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ENet sales 59,696 65,415 60,563 71,801 78,421 81,515Other operating income 317 211 160 277 233 238Total operating income 60,013 65,625 60,722 72,078 78,654 81,753% chg 210.7 9.4 (7.5) 18.7 9.1 3.9

Total expenditure 53,378 62,648 50,976 64,076 70,851 73,676EBITDA 6,635 2,977 9,746 8,002 7,803 8,077% chg 49.8 (55.1) 227.3 (17.9) (2.5) 3.5

(% of Net sales) 11.1 4.6 16.1 11.1 10.0 9.9

Depreciation 2,457 3,038 2,784 2,750 2,923 3,148

EBIT 4,179 (60) 6,962 5,252 4,881 4,928% chg 17.2 - - (24.6) (7.1) 1.0

(% of Net sales) 7.0 (0.1) 11.5 7.3 6.2 6.0

Interest charges 1,849 1,232 1,104 1,839 1,194 1,273

Other income 656 688 323 431 671 719

(% of PBT) 22.0 (113.7) 5.2 11.2 15.4 16.4

Share in profit of asso. - - - - - -

Recurring PBT 2,985 (605) 6,181 3,843 4,358 4,374% chg (18.5) (120.3) (1,121.7) (37.8) 13.4 0.4

Extra. Inc/(Expense) - - - - - -

PBT (reported) 2,985 (605) 6,181 3,843 4,358 4,374Tax 362 (954) 1,829 964 1,038 1,177

(% of PBT) 12.1 - 29.6 25.1 23.8 26.9

PAT (reported) 2,624 349 4,352 2,879 3,320 3,198 Add: Earnings of asso. (16) (35) (3) (57) - -

Less: Minority interest (221) 172 (424) (366) (187) (183)

Extra. Expense/(Inc.) - - - - - -

PAT after MI (reported) 2,387 485 3,925 2,456 3,133 3,015ADJ. PAT 2,343 422 3,910 2,456 3,133 3,015% chg (11.0) (82.0) 826.2 (37.2) 27.6 (3.8)

(% of Net sales) 3.9 0.6 6.4 3.4 4.0 3.7

Basic EPS (`) 20.1 2.8 22.1 12.8 16.4 15.8Fully Diluted EPS (`) 19.1 2.5 20.4 12.8 16.4 15.8% chg (24.3) (87.0) 723.0 (37.2) 27.6 (3.8)


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February 9, 2012 13

Balance Sheet (Consolidated)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ESOURCES OF FUNDSEquity share capital 123 170 191 191 191 191

Reserves & surplus 17,085 15,684 21,353 28,832 31,697 34,444

Shareholders funds 17,208 15,854 21,545 29,024 31,888 34,635Share warrants 139 - - - - -

Minority interest 1,617 1,287 1,737 2,217 2,404 2,586

Total loans 32,352 28,310 23,999 27,692 31,192 34,692Deferred tax liability 4,951 2,757 3,938 3,760 3,760 3,760

Total liabilities 56,267 48,207 51,219 62,692 69,244 75,673APPLICATION OF FUNDSGross block 34,187 38,332 41,189 39,265 47,265 57,265

Less: Acc. depreciation 7,373 10,807 16,622 15,801 18,724 21,872Net Block 26,814 27,525 24,567 23,464 28,541 35,393Capital work-in-progress 2,457 2,949 5,801 13,131 12,430 11,730

Goodwill 8,833 4,291 4,433 8,941 8,941 8,941

Investments 13,892 10,431 11,246 10,855 10,855 10,855

Current assets 21,474 19,271 23,188 27,985 25,116 25,781Cash 1,717 2,192 2,195 2,556 4,819 4,678

Loans & advances 1,859 1,827 3,117 3,333 1,568 1,630

Other 17,899 15,252 17,876 22,095 18,729 19,472

Current liabilities 17,204 16,260 18,017 21,684 16,640 17,027Net current assets 4,271 3,011 5,172 6,301 8,476 8,754Mis. exp. not written off 1 0.4 - - - -

Total assets 56,267 48,207 51,219 62,692 69,244 75,673


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February 9, 2012 14

Cash flow statement (Consolidated)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EProfit before tax 2,985 (605) 6,181 3,843 4,358 4,374

Depreciation 2,457 3,038 2,784 2,725 2,923 3,148Change in working capital 758 2,931 (598) (703) 87 (418)

Others 135 61 (2,799) 1,675 - -

Direct taxes paid 935 843 635 1,313 1,038 1,177

Cash flow from operations 5,400 4,581 4,932 6,226 6,330 5,928(Inc.)/ Dec. in fixed assets (16,653) (2,890) (4,171) (7,717) (7,300) (9,300)

(Inc.)/ Dec. in investments (2,150) 4,907 (1,614) 507 - -

(Inc.)/ Dec. in loans & adv. - - - - - -

Others (731) (910) (348) (519) - -

Cash flow from investing (18,072) 2,928 (5,437) (6,691) (7,300) (9,300)Issue of equity 2,524 5,062 2,754 10 - -

Inc./(Dec.) in loans 12,712.3 (9,195) (321) 3,738 3,500 3,500

Dividend paid 10 353 327 384 269 269

Others 2,312 2,245 1,677 2,539 - -

Cash flow from financing 12,915 (6,731) 428 825 3,231 3,231Inc./(Dec.) in cash 242 778 (76) 361 2,262 (140)

Opening cash bal. 1,467 1,405 2,263 2,186 2,556 4,819Closing cash bal. 1,709 2,183 2,187 2,547 4,819 4,678


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February 9, 2012 15

Key ratios

Y/E March FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EValuation ratio (x)P/E (on FDEPS) 8.3 63.9 7.8 12.4 9.7 10.1P/CEPS 4.1 7.8 4.5 5.8 5.0 4.9

P/BV 1.1 1.7 1.4 1.0 1.0 0.9

Dividend yield (%) 1.2 0.9 0.9 0.9 0.9 0.9

EV/Sales 0.6 0.7 0.7 0.6 0.6 0.6

EV/EBITDA 5.5 14.3 4.2 5.6 5.9 6.1

EV/Total assets 1.4 1.6 1.7 1.9 1.6 1.4

Per share data (`)EPS (Basic) 20.1 2.8 22.1 12.8 16.4 15.8

EPS (fully diluted) 19.1 2.5 20.4 12.8 16.4 15.8

Cash EPS 39.1 20.3 35.0 27.2 31.6 32.2

DPS 1.9 1.4 1.4 1.4 1.4 1.4

Book value 140.3 93.2 112.6 151.7 166.6 181.0

DuPont analysisEBIT margin 7.0 (0.1) 11.5 7.3 6.2 6.0

Tax retention ratio (%) 87.9 - 70.4 74.9 76.2 73.1

Asset turnover (x) 2.2 1.7 1.7 1.7 1.5 1.4

RoIC (Post-tax) 13.4 - 13.4 9.1 7.3 6.4

Cost of debt (post tax) 8.0 4.1 3.0 5.3 3.1 2.8

Leverage (x) 1.0 1.0 0.5 0.5 0.5 0.6

Operating RoE 18.7 - 18.5 10.9 9.3 8.3

Returns (%)RoCE (Pre-tax) 10.5 - 14.0 9.2 7.4 6.8

Angel RoIC (pre-tax) 16.5 - 21.6 15.4 12.6 11.0

RoE 15.6 2.6 20.9 9.7 10.3 9.1

Turnover ratios (x)Asset turnover (gross block) 2.5 1.8 1.5 1.8 1.8 1.6

Inventory (days) 76 50 81 50 50 50

Receivables (days) 41 37 39 42 42 42

Payables (days) 72 55 83 50 50 50

WC cycle (days) 33 36 36 37 40 41

Solvency ratios (x)Net debt to equity 1.0 1.0 0.5 0.5 0.5 0.6

Net debt to EBITDA 2.5 5.3 1.1 1.8 2.0 2.4

Interest coverage 2.3 - 6.3 2.9 4.1 3.9


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Research Team Tel: 022 - 4040 3800 E-mail: [email protected] Website: www.angeltrade.com

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trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

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Disclosure of Interest Statement Hindalco

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to 15%) Sell (< -15%)

Hindalco Result Updated

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Transcript of Hindalco Result Updated