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8/4/2019 Hindalco Eq Research - SA
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MANAGEMENT TEAM
Hindalcos management team consists of experienced individuals with strongcredentials as mentioned below.
Board of Directors Mr. Kumar Mangalam Birla, ChairmanMrs. Rajashree Birla
Mr. C. M. Maniar
Mr. S. S. KothariMr. M. M. Bhagat
Mr. K. N. Bhandari
Mr. A. K. Agarwala
Mr. N. J. Jhaveri Mr. Ram Charan
Mr. Jagdish Khattar
Mr. D. Bhattacharya, Managing Director
Exec President and CFO Mr. S. Talukdar
Exec President Corporate Mr. R. Ram
Projects and Procurement
Company Secretary Mr. Anil Malik
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Indian Subsidiaries
IndianAluminium
Company, Ltd.(currently
awaiting courtorder to mergewith Hindalco)
UtkalAlumina
InternationalLtd. (100%)
BiharCaustic &
ChemicalsLtd.
(54.65%)
DahejHarbour &
InfrastructureLtd. (100%)
Australian Subsidiaries
Birla Maroochydore Pty. Ltd. (50%)
Aditya Birla Minerals Ltd. (51%) Birla Resources Pty. Ltd. (100%)
Birla (Nifty) Pty. Ltd. (100%) Birla Mt Gordon Pty. Ltd. (100%)
HindalcoAlmex
AerospaceLimited(70%)
Canadian Subsidiary
TubedCoal
Limited(60%)
East CoastBauxiteMining
Company
Pvt. Ltd(74%)
Mahan Coal Limited (50%)
A joint venture with the Essar Power (MP) Limited.The two JV partners have been jointly allocated a
coal block in Madhya Pradesh and so a JV is formedto mine the coal for offtake by parent companies
An associate company, primarily aknowledge resource for the Aditya Birla
Group, where some of the major Groupcompanies, which are users of technologyhave a stake
Aditya Birla Science & Technology
Company Limited (49%)
Joint Venture and Associates
HINDALCOHINDALCOS COMPANY STRUCTURES COMPANY STRUCTURE
Novelis Inc. (100%)
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DISTRIBUTION OF SHAREHOLDING
AS ON 30 JUNE 2011
l
- Sh N .
l
h
A %
l .
l
- h
A %
l N .
Sh
h
.
Held by Promoter/ Promoter group 0 0 0
Held by public 0 0 0
T
l 0 0 0
O
g
v
bl
N
.
O
g
A %
l
.
g v
bl
A %
l
h
h
,
g
ll v
h v
Held by Public 0 0 0
T
l 0 0 0
W
N .
w
A %
l
w
A %
l
h
h
g
ll
v
w
Held by Promoter/ Promoter group 0 0 0
Held by public 0 0 0
T
l 0 0 0
T
l
-
l
h
g
ll
v
w
v
bl
Held by Promoter/ Promoter group 0 0 0
1,914,419,297
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Category
code
Category of shareholder Number of
shareholders
Total number of
shares
Number of shares held in
dematerialised form
(I) (II) (III) (IV) (V)
(A) Shareholding of promoter and promoter
group2
1 Indian
(a) Individuals/ Hindu undivided family 6 2,398,696 2,398,696(b) Central government / State government(s) - - -
(c) Bodies corporate 14 595,082,362 595,082,362
(d) Financial institutions/ banks - - -
(e) Any others (specify) - Trust 1 16,316,130 16,316,130
(e-i)
(e-ii)
Sub total (A)(1) 21 613,797,188 613,797,188
2 Foreign
a Individuals (non-resident individuals/foreign
individuals)
- - -
b Bodies corporate - - -
c Institutions - - -
d Any others (specify) - - -
Sub total(A)(2) - - -
Total shareholding of promoter and
promoter group (A)=(A)(1)+(A)(2)
21 613,797,188 613,797,188
(B) Public shareholding3
1 Institutions(a) Mutual funds/ UTI 195 44,173,858 44,144,928
(b) Financial institutions / banks 90 6,253,198 6,162,928
(c) Central government/ State government(s) 1 287,480
(d) Venture capital funds
(e) Insurance companies 24 194,991,393 194,985,173
(f) Foreign institutional investors 544 590,235,325 590,207,105
(g) Foreign venture capital investors - -
(h) Any other (specify)
(h-i)
(h-ii)Sub total (B)(1) 854 835,941,254 835,500,134
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Category
code
Category of shareholder Number of
shareholders
Total number of
shares
Number of shares held in
dematerialised form
(I) (II) (III) (IV) (V)
B 2 Non-institutions
(a) Bodies cor
orate 3,698 94,453,
88 93,596,5
(b) Individuals
I Individuals 323,211 134,458,656 116,753,546
i. Individual shareholders holdingnominal share
capital up to Rs 1 lakh
II ii. Individual shareholders holdingnominal share
capital in excess ofRs. 1 lakh
4 9,331,168 8,253,727
(c ) Non-resident Indians 7,458 9,964,5 8 6,978,977
(c-i ) Foreignbodies corporate 11 34,592,471 2, 36,761
(c-ii ) Foreignnationals -Anyother (specify)
a Shares in transit 551 3,426, 66 3,426, 66
b Educational trusts
Trusts 4 964,433 964,433
Sub total (B)(2) 335,
287,!
,390 232,010,010
(B) Total public shareholding (B)=
(B)(1)+(B)(2)
335,863 1,123,131,644 1,067,510,144
Total (A)+(B) 335,884 1,736,928,832 1,681,307,332
(C) Shares heldby custodians andagainst which
depository receipts have been issued
1 177,49 ,465 177,462,635
1"
romoter and"
romoter Group* 14,542,3 9 14,542,3 9
2"
ublic 1 162,948,156 162,92 ,326
Grand total (A)+(B)+(C) 335,885 1,914,419,297 1,858,769,967
Note: In case ofshares held custodianofDepository Receipts, there is onlyone shareholder
i.e. MORGAN GUARANTY TRUST COMPANYOFNEWYORK
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SHAREHOLDING OF PERSONS BELONGING TO THE CATEGORY
Promoters a # d promoters group Total s $ ares
$ eld
Perce# t(%) S$ ares pledged or
ot$ erwisee # cum% ered
IG&
&
oldings ' vt Ltd 228963487 11.96 (TurquoiseInvestment and Finance ' Ltd 99( 12468 5.17 (
Trapti Trading & Investments ' vt Ltd 93( 63124 4.86 (
GrasimIndustries Ltd 54542475 2.85 (AdityaBirlaNuvo Limited 335( 6337 1.75 (
' ilaniInvestment & Ind. Corp. Ltd. 29185398 1.52 (
) mang Comm. Co. Ltd 26442761 1.38 0
BirlaInstituteofTechnologyandScience 21,583,090 1.13 0Trustee holdingsharesunder theschemeof
merger of & IL 0 IGCL 0 IGFL onbehalfof
& indalco
16,316,130 0.85 0
Birla Group & oldings ' rivate Limited 6,731,467 0.35 01 umar MangalamBirla 865,740 0.05 0
ManavInvestment & Trading Co. Ltd. 672,571 0.04 0
Aditya Vikram Kumar MangalamBirla & uf 648,632 0.03 0
& eritage & ousing Finance Limited 634,591 0.03 0
RajashreeBirla 612,470 0.03 0
TGSInvestment and Trade ' rivate Limited 585,249 0.03 0MangalamServices Limited 153,008 0.01 0
VasavadattaBajaj 121,319 0.01 0NeerjaBirla 114,640 0.01 0
Kumar MangalamBirla F & NG ofAnanyashree
Birla
35,895 0 0
Global & oldings ' rivate Limited 6,336 0 0
Total 613,797,188 32.06 0
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SHAREHOLDING OF PERSONS CATEGORY ISE
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8/4/2019 Hindalco Eq Research - SA
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ANALYSIS OF MD&A
FY11 witnessed a strong pricing environment for commoditiesdriven by continued global economic recovery
The flip side was a sharp rally in crude and energy prices giving
rise to incessant cost pressures
Standalone basic and diluted Earnings er Share were at Rs.11.2
per share FY11 as compared with Rs. 1 . in FY1 . The
consolidated E S was Rs. 12. .
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BUSINESS HIGHLIGHTS
Consolidated Revenue of 72, 7 Crores (USD 15.9 billion)
EBITDA of $1.9 billion
Growth of 19 % year on year
BIT - Rs. ,433 crore as against Rs. 1 , 69 crore in FY1
This included Rs. 2,736 crore (USD 57 million) of unrealizedgains on derivatives, as against unrealised loss of Rs. 291crore
(USD 64 million) in FY11.
Adjusted consolidated EBITDA rose by 25% (31% in Dollar
terms) compared to FY1
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Aluminium Business contributed Rs. 56, 4 crore (up 17%
over last year)
Aluminium EBIT stoodat Rs. 4,469 crore compared to Rs.
5,99 crore in FY1 .
Copper Business revenue was higher at Rs. 15, 7 crore, a riseof 26% from Rs 12,573 crore in FY1
Copper Business EBIT Rs. 1, 2 crore is % higher over last
year
Standalone net sales at Rs. 23, 59 crore grew by 22%.
Standalone EBITDA for FY11 Rs. 3,5 2 crore against Rs. 3,21
crore in FY1
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BUSINESS OUTLOOK
Company has demonstrated the strength of its business model
Companys strategy to achieve global size and scale through the
acquisition of Novelis
Companys ongoing brownfield and Greenfield expansion plans
are progressing well notwithstanding the social, geo-political and
other macroeconomic challenges.
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RISK MANAGEMENT
In addition to the risk and currency fluctuation inherent in its operations,
the company has got significant exposure to commodity prices.
Hindalcos financial performance is significantly impacted by fluctuations in
the prices of Aluminium, Alumina exchange rates and interest rates.
The Company takes a very structured approach to the identification andquantification of each such risk and has a comprehensive risk management
policy.
Clearly defined policies and management controls govern all risk
management activities. Transactions in financial instruments for which thereis no underlying exposure to the company are prohibited.
All of the commodity, interest rate & foreign currency contracts are used to
mitigate uncertainty and volatility & to cover underlying exposures.
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COMMODITY PRICE RISK
Companys commodity hedging activities can be divided into following:
Timin mismatc ris : This is the price risk arising due to timing
mismatch of purchases of copper concentrate, which is priced based
on copper, gold and silver content and sale of copper products, gold and
silver. Company use various spread risk management tools to hedge this risk.
A solute price ris :We have price risk on aluminium that we produce.The company use various derivative tools for hedging this risk from time
to time.
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FOREIGN CURRENCY EXCHANGE RISK
Exchange rate movements, particularly between INR and USD have animpact on Hindalcos cost and revenues. Since the company is long in USD(inflow greater than outflow), the company will benefit from weakening of
the INR against USD and conversely, is disadvantaged if the rupeeappreciates.
In order to hedge this risk, the Company uses various tools such as foreign
currency borrowings, currency forward and option contracts.
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INTEREST RATE RISK
The company uses interest rate swaps to help maintain a strategic balancebetween fixed and floating-rate debts and to manage overall financing
costs. Most of the long term loans are at fixed rate currently.
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PROJECT EXECUTION RISK
The company is in the process of setting up 4 greenfield projects in difficultterrain. The project execution is contingent upon several external factors
including but not limited to land acquisition, project management skills,
timely delivery of equipments, regulatory approvals, changes in government
policies, inflationary factors etc.
Any delay or change in these activities could result in change in
implementation schedule and affect the financial performance of the
company. The company is continuously monitoring the progress to ensure
that the implementation schedules are adhered.