hindalco (1) (1) (2)

8/12/2019 hindalco (1) (1) (2)

1/26

8/12/2019 hindalco (1) (1) (2)

2/26

Company Profile:

Hindalco-

Metals flagship company of the Aditya Birla Group.

World's largest aluminium rolling company and one of the biggestproducers of primary aluminium in Asia.

Established in 1958, Hindalco commissioned its aluminium facility atRenukoot in Eastern U.P. in 1962.

The acquisition of Novelis Inc. in 2007 positioned it among the top five

aluminium majors worldwide and the largest vertically integratedaluminium company in India.

Group Companies:

-Novelis Inc

-Aditya Birla Minerals Ltd

-Hindalco-Almex Aerospace Ltd.

8/12/2019 hindalco (1) (1) (2)

3/26

Product range of the company includes:

Alumina chemicals. Aluminas and hydrates

Minerals. Primary aluminium Ingots. Wire rods Billets.

Aluminium extrusions. Aluminium rolled products. Aluminium foil& packaging. Aluminium alloy wheels. Copper cathodes Continuous cast copper rods.

Other:- Sulphuric acid. Phosphoric acid. Phospho gypsum. Copper slag.

8/12/2019 hindalco (1) (1) (2)

4/26

Kumar Birla Non-Executive Chairman of the Board

Praveen Maheshwari Chief Financial Officer

Bharat Jha Senior President - Corporate Projects & ProcurementAnil MalikCompliance Officer, Company Secretary

DebnarayanBhattacharya Managing Director, Executive Director

Vineet KaulChief People Officer

Satish pai CEO of HindalcosAluminium Business

Registered Office: Mumbai

Major Plants:1. Renukoot,UP2. Renusagar, Sonbhadra,UP

3. Khanvel,Silvassa (Dadra & Nagar Haweli)4. Bharuch, Gujarat5. Belurmath, Howrah

6. Alupuram, Ernakulum, Kerela

7. Sambalpur,Orissa

8. Sarguja,Chattisgarh
http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763874http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763874http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763874http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763875http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=324727http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=464586http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=464586http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=464586http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1505839http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=464586http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=464586http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=464586http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=324727http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=324727http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=324727http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763875http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763875http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763875http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763874http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763874http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=1763874http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=318432http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=318432http://in.reuters.com/finance/stocks/officerProfile?symbol=HALC.BO&officerId=318432

8/12/2019 hindalco (1) (1) (2)

5/26

Novelis with presence in four continents and being world leader in

aluminium rolling and recycling business was stategic acquisition for Aditya

Birla group

Due to bad management decision it suffered huge losses in 2006 and its

debt-equity ratio stood at 7.23:1

Aditya Birla Group acquired Novelis for $3.6 b

The acquisition propelled Aditya Birla Group in fortune 500 group

After merger Hindalco emerged as biggest rolled aluminium products maker

and fifth largest integrated aluminium manufacturer in the world

8/12/2019 hindalco (1) (1) (2)

6/26

Major Promoters of Hindalco:

No. Name of the Shareholder

Total Shares held

NumberAs a % of

grand total

1 Igh Holdings Private Limited 228,963,487 11.96

2 Turquoise Investment And Finance

Pvt Limited99,012,468 5.17

3 Trapti Trading & Investments Pvt Ltd 93,063,124 4.86

4 Grasim Industries Ltd 54,542,475 2.85

5 Aditya Birla Nuvo Limited 33,506,337 1.75

6 Pilani Investment & Ind. Corp. Ltd. 29,185,398 1.52

7 Umang Commercial Company Ltd 26,442,761 1.38

8

Birla Institute Of Technology And

Science 21,583,090 1.13

8/12/2019 hindalco (1) (1) (2)

7/26

Highlights of the Notes to Financial Statements:

In case of foreign subsidiaries, being non-integral foreign operations,

revenue items are translated at the average rates prevailing during theperiod. Assets, liabilities and equity are translated at the closing rate. Anyexchange difference arising on translation is recognized in the ForeignCurrency Translation Reserve.

Fixed Assets:(a) Tangible Assets are stated at cost less accumulated depreciation and

impairment loss, if any. Cost comprises of purchase price and any directlyattributable cost of bringing the assets to its working condition for itsintended use.

(b) Intangible Assets are stated at cost less accumulated amortization andimpairment loss, if any. Cost includes any directly attributable expenditureon making the asset ready for its intended use.

(c) Machinery spares which can be used only in connection with an item ofTangible Asset and whose use is not of regular nature are written off overthe estimated useful life of the relevant asset.

(d) Certain directly attributable pre-operative expenses during constructionperiod are included under Capital Work in Progress. These expenses areallocated to the cost of Fixed Assets when the same are ready for intendeduse.

8/12/2019 hindalco (1) (1) (2)

8/26

Highlights Continued.

Depreciation and Amortization:(a) Depreciation on Tangible Fixed Assets are provided using

straight line method based on estimated useful life or onthe basis of depreciation rates prescribed under respective

local laws.(b) Mining Rights and leasehold land are amortized over the

period of lease on straight line basis.

(c) Intangible assets are amortized over their estimated

useful lives on straight line basis.(d) Depreciation on assets acquired under finance lease is

spread over the lease term.

8/12/2019 hindalco (1) (1) (2)

9/26

8/12/2019 hindalco (1) (1) (2)

10/26

8/12/2019 hindalco (1) (1) (2)

11/26

8/12/2019 hindalco (1) (1) (2)

12/26

Directors Message: Mahan Coal: The Group of Ministers constituted by the Government of

India to consider environmental and developmental issues related tocoal mining etc, has recommended the granting of forest clearance bythe Ministry of Environment & Forest [MoEF] for the Mahan Coalblock on certain conditions. In this regard, further communication

from MoEF is awaited.

Expansion plans in Brazil and Asia to be completed by 2014. Environment Protection and Pollution Control

Company is committed to sustainable development. Company isa signatory to the Global Compact and subscribes to theprinciple of triple-bottom line accountability.

A separate chapter in this report deals at length with Company''sinitiatives and commitment to environment conservation.

8/12/2019 hindalco (1) (1) (2)

13/26

Recent news about Hindalco: Hindalco manages to refinance Rs 4,700 crore from

SBI and Axis Bank for its Utkal alumina project.

8/12/2019 hindalco (1) (1) (2)

14/26

FINANCIAL REPORT

ANALYSIS

Investment March 2013 March 2012 Change Definition Implications

8/12/2019 hindalco (1) (1) (2)

15/26

InvestmentValuationRatio

March 2013 March 2012 Change Definition Implications

Face Value 1 1

The nominalvalue or dollar

value of asecurity stated bythe issuer. Forstocks, it is theoriginal cost ofthe stock shownon the certificate

Dividend pershare

140 155 -15Dividend pershare (DPS) isthe totaldividends paidout over an entireyear (includinginterimdividends butnot includingspecialdividends)divided by thenumber ofoutstandingordinary shares

issued.

R M h M h Ch D fi i i I li i

8/12/2019 hindalco (1) (1) (2)

16/26

Return onInvestmentRatio

March 2013 March 2012 Change Definition Implication

Return on

net worth 0.0483 0.0672

The ratiomeasures the netprofit earned onequityshareholdersfunds. It is themeasure ofoverallprofitability of a

company

Earnings pershare

8.88 11.69

The ratiomeasures theoverallprofitability interms of perequity share of

capitalcontributed.Thisis the mostwidely used ratioacross industries

S l M h M h Ch D fi i i I li i

8/12/2019 hindalco (1) (1) (2)

17/26

SolvencyRatios


Debt toEquity Ratio 0.619 0.338

The ratiomeasures theproportion ofdebt and capitalboth equity andpreference in thecapital structureof a company. Ithelps in knowingwhether acompany is

relying more ondebt or capitalfor financing itsassets

InterestCoverageRatio

7.26 12.67 The ratiomeasures theability of a

company toservice theinterestobligations outof its cashprofits. Higherthe ratio, greateris the ability

8/12/2019 hindalco (1) (1) (2)

18/26

LiquidityRatio

March 2013 March2012

Change Definition Implicatin

Current Ratio 2.396747 1.668245 The ratio measures theability of a company todischarge its day to day

obligations. A companyshould possess adequatelevel of current assetsover current liabilities tobe able to do so. A currentratio of more than 1indicates that value ofshort-term assets is morethan short-termliabilities. A current ratioof less than 1 indicatespoor liquidity

InventoryHolding

Period

162.84 160.19

The ratio measures theaverage period for whichcash is blocked ininventory. In other wordsthe ratio explains how fastthe company is able toconvert its inventory intocash.

Li idit M h M h Ch D fi iti I li ti

8/12/2019 hindalco (1) (1) (2)

19/26

LiquidityRatio


Quick Ratio .617737 .53015 The ratio measures asto how fast thecompany is able tomeet its currentobligations as andwhen they fall due.This is also known asacid-test ratio.

Inventory andworking capital limitsare taken out ofcurrent assets andcurrent liabilitiesrespectively. A quickratio of 1: 1 isindicates highlysolvent position

T M h M h Ch (%) D fi iti I li ti

8/12/2019 hindalco (1) (1) (2)

20/26

TurnoverRatios

March 2013 March 2012 Change(%) Definition Implication

DebtorsTurnoverRatio

21.22 19.58 0.083

It represents thenumber of timesaverage duesfrom customers

are realised.Higher the ratio,the better is theposition.

Overall

EfficiencyRatio

0.46 0.58 (0.206) It shows howeffectively thecapital employedhas helped inrevenuegeneration.Higher the ratiogreater is theefficiency

InventoryTurnoverRatio

2.24 2.28 (0.01754)The ratio

measures theamount ofcapital tied up inraw material,W.I.P. andfinished goods

Profitability March 2013 March 2012 Change Definition Implication

8/12/2019 hindalco (1) (1) (2)

21/26

ProfitabilityRatio


Gross profit

margin 0.361 0.351

This reflects theefficiency withwhichmanagementproduces eachunit of output. Italso indicates thespread betweenthe cost of goods

sold and thesales revenue

OperatingProfit

.975 .931

This ratioindicatesprofitability fromoperatingactivities. A

higher marginimplies bettersales realisationand effective cost

control.

Profitability March 2013 March 2012 Change Definition Implication

8/12/2019 hindalco (1) (1) (2)

22/26

ProfitabilityRatio


Net Profit

Margin

.065 .084 The ratio is theoverall measure of

the firms ability toearn profit perrupee of sales. Italso establishesrelationshipbetweenmanufacturing,administering andselling the

products.

Individualcost expenses

to sale ratio

0.657 0.670 These ratiosmeasure theproportion of

individual items ofcost and expense inrelation to sales.They also assist theanalyst in costminimisation andcost reduction.

Profitability March 2013 March 2012 Change Definition Implicatio

8/12/2019 hindalco (1) (1) (2)

23/26

ProfitabilityRatio


Effective Tax

Rate 18.636 20.558

The ratio measuresthe actual effectiverate at which acompany paysincome tax asagainst thestatutory rate

DUPONT

Analysis 4.72 6.68

RONW is afunction of Net

Profit Margin andNet worthTurnover. DUPONT analysisseeks to measureand establish thisrelationship

between the twodeterminants.Through theseratios a firm candevise suitableremedies toovercome the weakarea of overall

performance.

8/12/2019 hindalco (1) (1) (2)

24/26

COMPARISION WITH ACOMPETITOR

8/12/2019 hindalco (1) (1) (2)

25/26

RATIO HINDALCO VEDANTA

Current Ratio 2.069 1.28

Debt to equity ratio 0.61 0.99

Earnings per share 8.88 51.3

Quick ratio 0.617 0.127

8/12/2019 hindalco (1) (1) (2)

26/26

RATIO HINDALCO VEDANTA

Operating Profit Margin .975 .1177

Net profit margin .0652 .1111

Effective tax rate 18.63 23.50

Dupont Analysis 4.72 28.90

hindalco (1) (1) (2)

Documents