Hindalco Industries (HINDALCO) Q4 12/13 earnings summary

Executive summary

• FY13 consolidated revenue ₹80,193 crore vs ₹80,821 crore; EBITDA ₹8,849 crore vs ₹8,967 crore; net profit attributable to shareholders ₹3,027 crore vs ₹3,397 crore.

• Results held up despite weak metal prices, cost pressure, operational disruptions and one-off issues; copper conversion and value-added products helped cushion aluminium weakness.

Financial highlights

• Standalone revenue ₹26,057 crore vs ₹26,597 crore; EBITDA ₹3,187 crore vs ₹3,721 crore; net profit ₹1,699 crore vs ₹2,237 crore.

• Consolidated profit before tax ₹3,909 crore vs ₹4,345 crore; finance costs rose to ₹2,079 crore from ₹1,758 crore.

• Consolidated operating cash flow ₹2,978 crore vs ₹7,602 crore; working capital changes and lower operating profit weighed on cash generation.

Outlook and guidance

• Near-term aluminium performance faces weak international prices, while depreciation and interest costs from expansion projects are expected to weigh on FY14 results.

• Long-term aluminium demand is projected to grow at 6% CAGR over five years; Indian demand is expected to grow at double-digit rates.

• Copper market surplus and subdued prices may persist for 1–2 years; projected deficits in 2016–18 could support price recovery, while conversion economics remain relatively insulated.

• Aditya Aluminium commissioning activities were slated for 2013; Novelis planned FY14 capex of $650–700 million.