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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
8/3/2019 Hindalco Result Updated
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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)
Source: Company, Angel Research
8/3/2019 Hindalco Result Updated
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Hindalco | 3QFY2012 Result Update
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
Source: Company, Angel Research
8/3/2019 Hindalco Result Updated
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Hindalco | 3QFY2012 Result Update
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 - -
Source: Company, Angel Research
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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Hindalco | 3QFY2012 Result Update
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
8/3/2019 Hindalco Result Updated
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Hindalco | 3QFY2012 Result Update
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
Source: Company, Angel Research
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$mn)
Net profit (LHS) Net profit margin (RHS)
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Hindalco | 3QFY2012 Result Update
February 9, 2012 7
Exhibit 10:Novelis Adj. EBITDA/tonne trend
Source: Company, Angel Research
Investment rationale
Aluminium capacity to increase three folds in the next four yearsHindalco aims to increase its aluminium capacity by almost three-folds in the next
four years to 1.5mn tonnes. Consequently, we expect production and sales volume
to record significant growth over FY201114. Most of these new capacities will be
backed by captive bauxite and coal mines; however, there is lack of clarity on
production from Mahan coal block on account of environmental issues currently.
0
50
100
150
200
250
300
350
400
0
50
100
150
200
250
300
350
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
(US$/tonne)
(US$mn)
Adj. EBITDA Adj. EBITDA/tonne (RHS)
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Hindalco | 3QFY2012 Result Update
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
Source: Company, Angel Research
Exhibit 12:Smelting capacity to scale up gradually
Source: Company, Angel Research
Exhibit 13:Refining capacity to grow 3.0x
Source: Company, Angel Research
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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Hindalco | 3QFY2012 Result Update
February 9, 2012 9
Exhibit 14:Novelis to generate US$1bn annually
Source: Company, Angel Research
Outlook and valuation We believe Hindalco is well placed to benefit from a) its aluminium expansion
plans (capacity increasing by nearly three folds in the next four years),
b) low production cost at its new capacities and c) steady capacity expansion
at Novelis.
However, there is lack of clarity over production from Mahan coal block. Without
captive coal block, the upcoming Mahan smelter (expected to commission in
1QFY2013) is expected to face cost pressures. Further, lower aluminium prices
and higher costs are expected to result in decline in FY2013 PAT by 3.8%.
Moreover, the 18% increase in the stock price over the past three months discounts
the near-term growth prospects of Hindalco. We derive a SOTP target price of`152 and recommend Neutral on the stock.Exhibit 15:SOTP valuation
FY2013 EBITDA (` cr) Multiple EV (` cr)Hindalco (Standalone) 3,256 6.0 19,539
Novelis 4,820 5.5 26,511
Total EV 46,049Less: Net debt (FY13E) 18,827
Value of investments @25% discount 2,22Value per share 152Source: Angel Research
Exhibit 16:EPS - Angel forecast vs. consensus
Year (`) Angel forecast Bloomberg consensus Variation (%)FY12E 16.4 16.4 (0.2)
FY13E 15.8 17.0 (7.3)
Source: Bloomberg, Angel Research
0
2
4
6
8
10
12
14
850
900
950
1,000
1,050
1,100
FY10 FY11 FY12E FY13E
(%)
(US$mn)
EBITDA EBITDA margin
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Hindalco | 3QFY2012 Result Update
February 9, 2012 10
Exhibit 17:EV/EBITDA band
Source: Bloomberg, Angel Research
Exhibit 18:P/E band
Source: Bloomberg, Angel Research
Exhibit 19:P/BV band
Source: Bloomberg, Angel Research
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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Hindalco | 3QFY2012 Result Update
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
Source: Company, Angel Research
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Hindalco | 3QFY2012 Result Update
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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Hindalco | 3QFY2012 Result Update
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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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Hindalco | 3QFY2012 Result Update
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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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Hindalco | 3QFY2012 Result Update
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
8/3/2019 Hindalco Result Updated
16/16
Hindalco | 3QFY2012 Result Update
Research Team Tel: 022 - 4040 3800 E-mail: [email protected] Website: www.angeltrade.com
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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%)