Hindalco reports Standalone and Consolidated audited results for year ended 31 March 2013
Ø First Metal tapped at Mahan Aluminium Project
Ø Utkal Alumina Project under commissioning
Ø Consecutively 4th quarter of improved performance
Financial Highlights
STANDALONE | CONSOLIDATED | |||||||
Q4FY13 | Q3FY13 | Q4FY12 | FY13 | FY12 | FY13 | FY12 | ||
(In Rs. crore) | ||||||||
Revenue from Operations | 6,994 | 6,872 | 7,647 | 26,057 | 26,597 | 80,193 | 80,821 | |
EBITDA | 644 | 582 | 864 | 2,204 | 3,105 | 7,837 | 8,184 | |
Other income | 231 | 318 | 161 | 983 | 616 | 1,012 | 783 | |
Profit Before Interest, Tax, Depreciation & Amortisation | 875 | 900 | 1,025 | 3,187 | 3,721 | 8,849 | 8,967 | |
Depreciation | 173 | 188 | 166 | 704 | 690 | 2,861 | 2,864 | |
Finance Costs | 158 | 169 | 80 | 436 | 294 | 2,079 | 1,758 | |
Profit before tax | 544 | 543 | 779 | 2,047 | 2,737 | 3,909 | 4,345 | |
Tax Expenses | 62 | 109 | 139 | 347 | 500 | 886 | 786 | |
Net profit before Minority Interest and Share in Associates | 482 | 434 | 640 | 1,699 | 2,237 | 3,023 | 3,559 | |
Share in Profit/ (Loss) of Associates (Net) | (16) | 50 | ||||||
Minority Interest | (20) | 211 | ||||||
Net Profit for the Period | 482 | 434 | 640 | 1,699 | 2,237 | 3,027 | 3,397 | |
Basic EPS | 2.52 | 2.26 | 3.34 | 8.88 | 11.69 | 15.81 | 17.74 | |
Note: Certain descriptions and /or figures of earlier periods have been changed/regrouped to conform to current practices
Hindalco Industries Limited, the flagship company of the Aditya Birla Group, today announced its standalone and consolidated audited financial results for the year ended 31 March, 2013.
Standalone results
Quarterly Results
The operational results for the Quarter ended on 31st March 2013 showed significant improvement over the previous quarter – EBITDA surged by over 10%. The Company has delivered sequentially an improved EBITDA in every quarter of this year. The operating margin of the Company also grew in this quarter by 72 basis points due to operational efficiencies.
As a result, Net profit has risen by over 11% at Rs. 482 crore.
Aluminium sales grew by 8% to Rs. 2,396 crore from Rs. 2,215 crore in Q3FY13 on the back of higher volumes. The Segment results before Interest and Tax soared by 37% to Rs. 284 crore. The Company was able to register a significant increase of 250 basis points in its EBIT margin in Aluminium business.
Alumina and Aluminium Production in Q4’13 at 330 Kt and 142 Kt respectively have also been higher over Q3FY13.
The Capital employed in the Aluminium Business stood at Rs. 31,942 crore as on March 31, 2013, which included around Rs. 22,500 crore relating to the Greenfield investments, viz., Mahan, Hirakud Flat Rolled Products and Aditya Aluminium Projects.
Copper The EBIT of Copper Business posted a growth of 15% to Rs. 259 crore while Capital employed in Copper Business remained at Rs 5,916 crore. The Company achieved an 80 basis point increase in EBIT margin in Copper business.
Copper Cathode production in Q4’13 at 84.6 Kt is higher compared to 83.7 Kt in Q3’13.
Thus there was an all-round improvement in performance in volumes, margins and results in both the businesses of the Company.
Annual Results
Financial Year 2013 was marked by consistently low aluminium LME and constantly increasing costs. As a result, aluminium companies across the globe suffered during this year. However, Hindalco was able to mitigate impact of the above factors by improved efficiencies and higher volumes. Consequently, the Company’s results in this business segment stand out on almost every parameter in the peer group – both domestic as well international.
The Company closed the year with stand alone revenues at Rs. 26,057 crore, Profit before Depreciation, Interest and Tax at Rs.3,187 crore and Net Profit at Rs 1,699 crore.
Consolidated results
Despite a sluggish market and headwinds in all businesses of the Company, the Consolidated Revenue as well as Profit before Depreciation, Interest and Tax for the year at Rs 80,193 and Rs 8,849 crore respectively compare well with last year’s corresponding figures. With regard to segment results, Aluminium Segment has done particularly well by maintaining its EBIT at Rs 4,388 crore on consolidated basis.
Novelis Inc (wholly owned subsidiary)
The performance of Novelis was negatively impacted by pricing pressures from competitors, supply chain disruptions due to implementation of a new ERP system in two North American plants, as well as production challenges and softer demand.
Shipments of flat rolled products are marginally lower at 2,786 Kt for the year ended 31March, 2013, compared to 2,838 Kt in the prior year. Net sales were 11% lower primarily driven by a 15% decline in average aluminium prices and a fall in flat rolled product volumes by 2%.
Aditya Birla Minerals Limited (51 per cent subsidiary)
The company’s copper production expanded by 16% mainly on account of restart of Mt Gordon mine. Sales volume is up by 14% compared to the previous year. The revenue in value terms was sustained. Profitability was adversely affected given lower realisation of copper compared to the previous year and higher average unit cost of production, because of higher volume from Mt Gordon operations at higher cost.
At Nifty, the ore mined was 2.27 million tonnes up by 8% over the previous year. At Mt Gordon, the ore mined was 1.10 million tonnes representing a step up of 59% over the previous year.
Mount Gordon mine’s operations are currently placed under care and maintenance.
Dividend
The Board of Directors of the Company have recommended a dividend of Rs. 1.40 per share aggregating to Rs. 313.6 crore (including dividend distribution tax of Rs. 45.55 crore) for the year ended 31st March, 2013.
Projects – in India
Estimated Capacity | Actual or estimated | ||
Location | Description of Expansion | (at full capacity) | Commission Date/ Progress Update |
India | |||
Hirakud, Odisha | Smelter Expansion | 52 Kt | Under Commissioning |
Captive Power Plant Expansion | 100 MW | ||
Rolling Plant | 135 Kt | Partially Commissioned | |
Rayagada, Odisha (Utkal Alumina) | Alumina Refinery) | 1500 Kt | Under Commissioning |
Captive Power Plant | 90 MW | ||
Mahan, Madhya Pradesh (Mahan Aluminium) | Aluminium Smelter | 360 Kt | First Metal Tapped, commissioning being undertaken in phased manner |
Captive Power Plant | 900 MW | ||
Lapanga, Odisha (Aditya Aluminium) | Aluminium Smelter | 360 Kt | 2013 |
Captive Power Plant | 900 MW |
All these ongoing projects of the Company with a cumulative investment of around Rs 28,000 crore have either been commissioned or are in advanced stages of commissioning/implementation.
Projects - Overseas
Estimated Capacity | Actual or estimated | |||||||
Location | Description of Expansion | (at full capacity) | Commission Date/ Progress Update | |||||
North America | ||||||||
Oswego, NY | Automotive sheet finishing plant | 200 kt | Mid CY2013 | |||||
Europe | ||||||||
Nachterstedt, Germany | Recycling expansion | 250 kt | Mid CY2014 | |||||
Asia | ||||||||
Ulsan & Yeoungju, South Korea | Rolling expansion | 350 kt | Mid CY2013 | |||||
Yeoungju,South Korea | Recycling expansion | 265 kt | Oct-12 | |||||
Changzhou, China | Automotive sheet finishing plant | 120kt | End CY2014 | |||||
South America | ||||||||
Pinda, Brazil | Rolling expansion | 220 kt | Dec-12 | |||||
Pinda, Brazil | Can coating line | 100 kt | End CY2013 | |||||
Pinda, Brazil | Recycling expansion | 190 kt | End CY2013 | |||||