Hindalco Industries Ltd., a global leader in aluminium and copper, today announced consolidated results for the fourth quarter and full-year ended 31 March 2020.
The company reported strong quarterly results driven by a record performance by Novelis, supported by lower input costs and stable operations in the Indian businesses. Despite rising uncertainty on account of COVID-19, Novelis recorded its best-ever EBITDA, while the Indian Aluminium business delivered EBITDA margins for the quarter and full-year, that outperformed the industry.
Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries Ltd., said, 'We attribute our strong fourth quarter results to our sustained focus on cost control and better efficiencies, as well as, our proactive and precautionary measures during the pandemic. Our EBITDA margins were the best in the industry despite significant market uncertainty. This shows the extent of Hindalco's resilience to perform in all market environments. Currently, around 80 per cent of Hindalco's consolidated FY20 EBITDA is LME-delinked, a clear affirmation of our diversified, value-added portfolio. We are confident our business model and strategic critical investments will strengthen business for the long-term. Volatile environments will continue to test the industry but we believe our strategic focus on future proofing operations will continue to raise our performance above the sector.'
Novelis Inc.
Novelis delivered yet another record quarterly performance for Q4FY20, driven by portfolio optimisation efforts and better cost efficiencies coupled with favourable demand for lightweight, sustainable aluminium solutions across end-markets. Novelis recorded its highest-ever quarterly adjusted EBITDA of US$383 million, a growth of 7 per cent over the prior year. Q4FY20 Adjusted EBITDA per ton touched a record high of US$472, up 15 per cent year-on-year. Novelis reported a Net Income (excluding tax-effected special items) of US$153 million in Q4FY20, an increase of 18 per cent over Q4FY19. Revenue was down 12 per cent year-on-year at US$2.7 billion in Q4FY20, mainly driven by lower average global aluminium prices and local market premiums. Total shipments of flat rolled products (FRPs) were at 811 Kt, in Q4FY20, lower by 7 per cent year-on-year.
Hindalco Aluminium (including Utkal Alumina)
EBITDA stood at Rs.1,039 crore in Q4FY20, compared to Rs.1,010 crore in Q4FY19, up 3 per cent year-on-year. EBITDA margin of 20 per cent in the fourth quarter set an industry benchmark amid a challenging macro environment. Reported revenue of Rs.5,284 crore in Q4FY20 (vs. Rs.5,953 crore in Q4 FY19) was down 11 per cent due to low aluminium prices. Stable operations in the Indian Aluminium Business helped achieve Aluminium metal production of 327 Kt, up 2 per cent year-on-year. Aluminium Metal sales were at 314 Kt in Q4FY20, down 3 per cent year-on-year, due to the lockdown effect. Aluminium VAP (excluding wire rods) sales volumes in the fourth quarter were at 76 Kt vs. 83 Kt for the same quarter last year. Utkal Alumina refinery recorded its highest-ever quarterly production of 441 Kt in this quarter.
Copper
EBITDA in Q4FY20 was at Rs.406 crore compared to Rs.373 crore in Q4FY19, higher by 9 per cent year-on-year. Revenue from the Copper Business was Rs.4,717 crore in the fourth quarter compared to Rs.6,513 crore in the same quarter last year, lower by 28 per cent due to lower realisations and volumes. Total copper metal sales were lower by 14 per cent, at 86 Kt in Q4FY20, vs. 100 Kt in the year-ago quarter, impacted by the lockdown effect in March'20. Copper Value Added Product (VAP) recorded the highest-ever quarterly production at 71 Kt, up 15 per cent year-on-year. Copper VAP sales in Q4FY20 were up 4 per cent at 73 Kt vs. 70 Kt in the year-ago quarter, despite tough market conditions. The share of VAP to total metal sales rose to 86 per cent in this quarter.
About Hindalco Industries Limited
Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. A US$ 16.7 billion metals powerhouse, Hindalco is the world's largest aluminium rolling and recycling company, and a major copper player. 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.
Contact:
Tel: +91 22 6662 6666
Email: hindalco@adityabirla.com
Web: www.hindalco.com
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.
HINDALCO INDUSTRIES LIMITED 
