hindalco industries limited abridged annual repor t 2016-17

174 Pages·2017·2.15 MB·English

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Hindalco Industries Limited
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Registered Offi ce:
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Century Bhavan, 3rd Floor,
Dr. Annie Besant Road, Worli, R
Mumbai - 400 030. T
Tel: [phone] s
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Fax: [phone] Pr 0
E-Mail: [email protected] n 1
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Website: www.hindalco.com s 6
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CIN No. L27020MH1958PLC011238 o - ASIA’S LARGEST SINGLE
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LOCATIOThN eC OfuPlPl AERn nSuMaEl LRTeEpRort of the Company is available on our website www.hindalco.com
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Hindalco Corporate Structure Diagram
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THE CHAIRMAN’S LETTER TO SHAREHOLDERS
Dear Shareholders,
Global Economy
The global economy continued to be subdued
in 2016. The slowdown in the advanced
economies of the West adversely impacted
growth levels, resulting in the slowing of the
world economic growth to 3.1% from 3.4%
in the earlier year. The growth in emerging
markets and developing economies was
encouraging. However, China and India
experienced a deceleration. Financial markets
refl ected a broad uptrend, notwithstanding
Brexit and the rate hikes by the US Fed.
Recent data reveals that the global economy
is gaining momentum. PMIs (Purchasing
Managers’ Indexes), accelerating trade fl ows
and better business and consumer confi dence
are the key pointers. The IMF has projected
global growth to notch up to 3.5% in 2017
from 3.1% last year. Growth in the advanced
economies is estimated at 2%, with US growth
at 2.3%, the Euro area at 1.7% and Japan
at 1.2%. Growth in the emerging markets is
pegged at 4.5%, driven largely by China,
India and the ASEAN region. Latin America is
expected to grow only 1.1%, affected by the
weak trend in Brazil.
Indian Economy
India is on a roll. There is a buzz about India,
as it blazes forth as the fastest growing
economy in the world at 7.1%. The trade
defi cit in 2016-17 was USD 106 billion, lower
by 11% over the previous year. The current
account defi cit has been signifi cantly pared.
India’s foreign exchange reserves as at March
end 2017 were USD 370 billion. Investors are
bullish. Foreign investment fl ows, which were
at over USD 60 billion in FY-17 are scaling new
records. Markets are buoyant. Stock index is
at a historic peak. India’s global ranking has
jumped up in competitiveness and on the
innovation index.
The various initiatives and reforms of the
Modi Government have built the platform for
a quantum leap ahead. High impact national
projects, coming to grips with structural
issues, which were holding back the country’s
progress, innovative approaches in policy
making – have collectively contributed in
driving India on a high growth trajectory. Going
forward the abiding sense is one of immense
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Hindalco Industries Limited
optimism and confi dence in the future with the nation slated to grow at 7.5% to
India is on a roll. There is 8%. India’s narrative is unmatchable.
That said, if there is one subject that needs greater attention on the government’s
a buzz about India............
radar for the ensuing years, it is the revival of investment activity and creation
India’s global ranking of quality jobs in large measure. The Government is seized of these issues. The
Government has taken many steps, including a sharp focus on improving ease of
has jumped up in
doing business, speeding of green clearances and stepping up public sector outlays
competitiveness and on the for infrastructure. I believe, it is a matter of time before the private sector investments
pick up – as NPAs are resolved and corporate balance sheets are deleveraged.
innovation index.
The metals sector: In brief
Global Aluminium demand excluding China grew by 3% in 2016 compared to the
earlier year. In China it rose by 7% in 2016 on the back of stimulus provided by the
government. The overall global Aluminium consumption touched around 60 MnT,
registering a growth of 5.0% in 2016 over 2015. China continues to be the largest
consumer of metal, accounting for over 50% of the total global consumption. In
FY17, Aluminium LME was on the upward trend compared to FY16. Premium in
FY17 remained at low levels. Premiums started to recover from November 2016
due to supportive demand and price outlook and low inventory level in LME
warehouses.
Global Refi ned copper consumption grew by 2.2% in 2016 vs 2015. China is the
largest consumer of copper. On the supply side, global mine supply extended by
5% in 2016. This led to an increase in TcRc. However in early 2017 the disruption
in mines resulted to reduced TcRc.
The Domestic Demand for Aluminium in India is expected to benefi t from the
Infrastructure projects prioritised by the government. The government’s thrust on
the power which sector is the dominant consumer of Aluminium in India, augurs
well for your Company. The Automobile and food packaging industries are also
expected to stoke aluminium growth. Furthermore, rapid urbanisation should
augment consumer demand, yet another positive for the sector. Moreover the per
capita aluminium consumption is far below the global average. This offers a huge
potential, given our demographic and economic outlook.
The Domestic Copper demand is led by the electrical and electronic products
sector, accounting for 34% of the consumption. The strong growth in end user
segments such as winding wires, power cables and other user applications favour
the sector.
Initiatives such as housing for all, the creation of 100+ smart cities, the thrust
on infrastructure especially rural infra development, along with Make in India and
Digital India among others should spur the industrial sector to higher growth levels
as well as enhance private investments in FY18.
Your Company’s Your Company’s performance
In an environment of mixed economic signals, your Company’s performance
performance has been
has been commendable in FY17. It registered a record Consolidated EBITDA at
commendable in FY17. ` 13,558 crore on a turnover of ` 102,631 crore. Both Aluminium and Copper
Businesses in India and Novelis registered robust operational performance.
It registered a record
Before I move into the operational aspects, I would like to brief you on some of the
Consolidated EBITDA at
important developments at your Company.
` 13,558 crore on a turnover
Deleveraging
of ` 102,631 crore.
In line with our stated objective to deleverage the balance sheet, your Company
successfully raised USD 500 million through a Qualifi ed Institutional Placement
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THE CHAIRMAN’S LETTER TO SHAREHOLDERS
(QIP), which along with the treasury balance was utilised to prepay the existing
borrowing. This has led to a substantial improvement in the Consolidated Net Debt
For the FY 2017, the
to EBITDA. Your Company has prepaid close to ` 5,500 crore till date.
Company achieved
Its subsidiary Novelis refi nanced USD 4.3 billion long term debt. The annual cash
interest expense stands reduced by USD 79 million. record production —
Divestments Aluminium metal at
Novelis entered into a JV agreement in May 2017 with Kobe Steel to sell 50 percent
1.3 million tonne and
of its ownership interest in its Ulsan, South Korea facility, for USD 315 million.
Alumina (including Utkal
Your Company also divested Aditya Birla Minerals Limited, Australia for USD 80
million. Alumina) at 2.9 million
Both these moves are towards enhancing stakeholder value.
tonne.
Energy Security
I am also pleased to inform you that with new coal linkages attained in FY2017,
coal security is now at over 60% of your Company’s annual requirement of the
domestic Aluminium Business.
Operations
For the FY 2017, the Company achieved record production — Aluminium metal
at 1.3 million tonne and Alumina (including Utkal Alumina) at 2.9 million tonne.
Alumina production was up 8 per cent and Aluminium metal production extended
by 12 per cent as compared to the previous year. Value Added Products (including
Wire Rod) production was at 481 kilotonne, higher by 14 per cent as compared
to the preceding year. All of your Company’s new plants viz. Aditya Aluminium,
Mahan Aluminium and Utkal Alumina are operating at their rated capacities.
In the Copper Business, production was lower as the business took a planned
shutdown. The Subdued demand in the wire rod segment also dented CC Rod
production. Consequently cathode, CC rod and DAP production fell by 3 per cent,
5 per cent and 7 per cent respectively.
A big thank you to all of our employees
Organizational agility, excellence in execution, customer centricity and cost
optimization are a given. I believe to drive business growth in a sustainable manner,
the criticality of our people – our intellectual capital, is beyond expression. We
deeply value our employees’ engagement and their commitment to our culture of
innovation and performance accountability.
Aditya Birla Group: In perspective
At the Group level our performance both in terms of revenue and earnings has
Our Group’s HR
been growing. In fact our EBIDTA has been the highest ever. In line with our
people focus, we have strengthened the capacity of our leadership bench as well agenda is even more
as employees across levels. Our Group’s HR agenda is even more sharper and
sharper and defi ning
defi ning of our future. Our HR function has collectively developed and clearly
articulated the HR 2020 strategy across the organization. It has clear actionables of our future. Our HR
and review mechanisms, focused on talent, technology, productivity and employer
function has collectively
brand.
On the people front it has truly been an exciting year of development, building on developed and clearly
the strong foundations of the earlier years.
articulated the HR 2020
As I had shared with you earlier, we have 3 accelerated leadership programs.
strategy across the
First - The Turning Point, which prepares high potential leaders for P&L roles.
Second - Step Up which infuses a ready pipeline for Functional Head roles, and organization.
Third - Springboard designed especially for high caliber women leaders.
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Hindalco Industries Limited
These have enabled us to set up the requisite bench strength of leaders.
Our Group features We have prepared 123 leaders for higher responsibilities, over the last one year.
Of this 26 have already taken on new roles. The Business leadership and I have
among the formidable
personally reviewed talent across the business, and am happy to see the evolution
Top-5 in the A C of our structured succession plans.
The hiring freeze came into effect in January 2016. This, coupled with our leadership
Nielsen – CRI Campus
development actions, has resulted in extremely encouraging people moves. Over
Recruitment India Index the last year, we witnessed 5500+ career movements across the Group. Of these,
600+ were inter-business movements, 150% higher than the previous year.
2016 as well.
The Aditya Birla Group Leadership Program (ABGLP) is another strong source of
building leaders. It has gained greater traction this year with 67% higher intake.
From the earlier batches, 95 participants, have over the last 2 years, been given
cross business and function exposures grooming them for a holistic perspective.
I am happy to share that we continue to be an employer of choice amongst the
top B schools in India. Our Group features among the formidable Top-5 in the A C
Nielsen – CRI Campus Recruitment India Index 2016 as well.
Additionally to accelerate opportunities for our talent we have set up Talent
Councils led by Business Heads and Directors at the business and Group levels.
Up until now more than a 100 Talent Councils meetings have happened across the
Group where the development plans of approximately 3000 colleagues have been
discussed and actions taken.
Project Vega is yet another initiative launched this year. Its basic objective is to
review the agility of decision making in the organization, keeping in view end-
customer impact. This has yielded signifi cant changes to internal processes,
delegation of authority and speed of decision making, in turn empowering teams
and freeing up leadership bandwidth. This, along with our focus on technology
enabled processes, I believe, will keep us sharp and nimble.
Furthermore, to hone and enhance our functional expertise, Gyanodaya, the Aditya
Birla Global Centre for Leadership & Learning, launched Functional Academies
last year. The Sales, Marketing & Customer Centricity Academy and HR Academy
enabled 1150 leaders build deeper expertise in their domain areas. Gyanodaya
continues to deliver superior learning programs with over 1583 managers enrolled
last year.
Additionally, the Gyanodaya Virtual Campus hosts more than 500 e-learning
modules in multiple languages. During the year, over 31664 employees accessed
these e learning programs. I am happy to update you that we are doubling our
capacity in Gyanodaya, through upcoming expansion plans.
In sum
Our Group’s solid reputation, robust fi nancials, the quality and commitment of our
talent, our leadership positions in our businesses, our operational excellence and
our CSR engagement, are our strengths that I believe, will see us ride the wave of
success.
Yours sincerely
Kumar Mangalam Birla
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A B R I D G E D
BOARD OF DIRECTORS Annual Report 2016-17
AND KEY EXECUTIVES
BOARD OF DIRECTORS BUSINESS/UNIT HEADS
Non-Executive Directors Mr. Jagdish Chandra Laddha
Group Executive President &
Mr. Kumar Mangalam Birla, Chairman
Head-Copper Business
Mrs. Rajashree Birla Mr. Devotosh K. Das
Chief Marketing Offi cer (Aluminium)
Mr. Debnarayan Bhattacharya, Vice Chairman
Mr. Sanjay Sehgal
Mr. Madhukar Manilal Bhagat Senior President & Head-Chemicals Business
Mr. Satish Jajoo
Mr. Kailash Nath Bhandari
Chief Operating Offi cer & Cluster Head
Mr. Askaran Agarwala (Renukoot, Renusagar and Mahan Units)
Mr. B. Arun Kumar
Mr. Yazdi Dandiwala
President (Downstream Operations-Aluminium)
Mr. Ram Charan Mr. Rajesh Gupta
Senior President & Cluster Head
Mr. Jagdish Khattar
(Aditya and Hirakud Units)
Mr. Girish Dave Mr. Pramod Unde
(w.e.f. 28 th May, 2016) President (Mining and Minerals)
EXECUTIVE DIRECTORS SUBSIDIARIES
Utkal Alumina International Limited
Mr. Satish Pai
Mr. Nagesh Narisetty, President & Unit Head
Managing Director
Mr. Praveen Kumar Maheshwari Novelis Inc
Chief Financial Offi cer & Whole Time Director Mr. Steve Fisher
President & CEO
COMPANY SECRETARY
Mr. Anil Malik
CORPORATE
AUDITORS
Mr. V. R. Shankar
Singhi & Co., Kolkata
President & Head-Legal
Mr. Samik Basu
Chief Human Resource Offi cer
Mr. Chandan Agrawal COST AUDITORS
Chief Strategy Offi cer R. Nanabhoy & Co., Mumbai
Table of Contents
2 Financial Highlights 54 Abridged Balance Sheet
4 Management Discussion & Analysis 55 Abridged Statement of Profi t and Loss
14 Directors’ Report
56 Abridged Standalone Statement of Changes in Equity
28 Sustainability & Business Responsibility Report
57 Abridged Cash Flow Statement
35 Corporate Governance Report
58 Notes forming part of the
37 Shareholder Information
Abridged Financial Statements
40 Social Report
101 Abridged Consolidated Financial Statements
45 Independent Auditors’ Report on
Abridged Standalone Financial Statements (i-x) Notice of Annual General Meeting and Proxy
Excellence by Design 1
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Hindalco Industries Limited FINANCIAL HIGHLIGHTS - STANDALONE
(` crore)
2016-17 @ 2016-17 @ 2015-16 @ 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
PROFITABILITY US$ in Mn*
Sales and Operating Revenues 5,873 39,383 36,713 36,869 30,101 28,070 28,297 25,348 20,570 19,718 21,022
Less: Cost of Sales 5,156 34,570 33,367 33,453 27,609 25,866 25,192 22,193 17,620 16,682 17,621
Operating Profi t 718 4,814 3,346 3,417 2,492 2,204 3,105 3,155 2,950 3,036 3,401
Other Income 150 1,005 979 882 1,124 983 616 347 260 637 493
Less: Depreciation, Amortization and Impairment 213 1,428 1,282 837 823 704 690 687 667 645 588
Less: Interest and Finance Charges 347 2,323 2,390 1,637 712 436 294 220 278 337 281
Profi t before Exceptional Items and Tax 308 2,068 653 1,825 2,081 2,047 2,737 2,595 2,265 2,690 3,026
Exceptional Income/ (Expenses) (Net) 13 85 - (578) (396) - - - - - -
Profi t/ (Loss) before Tax from Continuing Operations 321 2,153 653 1,247 1,685 2,047 2,737 2,595 2,265 2,690 3,026
Less: Tax Expenses 89 596 99 322 272 347 500 458 349 460 165
Profi t/ (Loss) from Continuing Operations 232 1,556 554 925 1,413 1,699 2,237 2,137 1,916 2,230 2,861
Profi t/ (Loss) from Discontinued Operations (Net of Tax) 0 1 (2) - - - - - - - -
Profi t/ (Loss) for the Period 232 1,557 552 925 1,413 1,699 2,237 2,137 1,916 2,230 2,861
Business Reconstruction Reserve (BRR) #
Expenses adjusted against BRR (Net of Tax) - - 682 97 86 - - - - 67 -
Profi t/ (Loss) for the Period had the expenses
not adjusted against BRR 232 1,557 (130) 828 1,327 1,699 2,237 2,137 1,916 2,163 2,861
FINANCIAL POSITION
Gross Fixed Assets (excluding CWIP) 7,207 46,742 43,316 35,434 26,804 15,073 14,478 14,287 13,793 13,393 12,608
Capital Work-in-Progress (CWIP) ** 110 712 3,079 10,744 17,277 23,605 16,257 6,030 3,703 1,390 1,120
Less: Accumulated Depreciation,
Amortization and Impairment 1,906 12,358 11,063 9,374 8,749 7,975 7,328 6,703 6,059 5,506 4,799
Net Fixed Assets 5,411 35,096 35,332 36,804 35,332 30,703 23,407 13,615 11,438 9,277 8,929
Investments 4,522 29,332 27,311 21,251 21,907 20,482 18,087 18,247 21,481 19,149 14,108
Other Non-Current Assets /(Liabilities) (Net) (157) (1,015) (1,038) (1,193) (1,174) (751) (207) 2,096 (1,367) (1,411) (1,324)
Net Current Assets 1,707 11,070 9,230 9,400 8,339 8,409 5,319 4,782 2,716 5,068 4,051
Capital Employed 11,483 74,483 70,835 66,262 64,404 58,843 46,606 38,740 34,268 32,082 25,765
Less: Loan Funds 4,186 27,150 28,676 29,007 27,672 24,871 14,574 9,040 6,357 8,324 8,329
Net Worth 7,297 47,333 42,159 37,255 36,732 33,972 32,032 29,700 27,911 23,758 17,436
Net Worth represented by :
Equity Share Capital 34 223 205 207 206 191 191 191 191 170 123
Other Equity:
Share Warrants - - - - - 541 541 - - - 140
Reserves and Surplus 6,350 41,188 36,568 37,049 36,526 33,240 31,300 29,509 27,720 23,588 17,174
Other Comprehensive Income 913 5,922 5,386 - - - - - - - -
7,297 47,333 42,159 37,255 36,732 33,972 32,032 29,700 27,911 23,758 17,436
RATIOS AND STATISTICS
Unit 2016-17 @ 2015-16 @ 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
Operating Margin % 12.22 9.11 9.27 8.28 7.85 10.97 12.45 14.34 15.40 16.18
Net Margin % 3.95 1.50 2.51 4.70 6.05 7.91 8.43 9.31 11.31 13.61
Gross Interest Cover Times 2.50 1.81 1.75 1.50 1.61 3.62 5.74 5.23 5.48 6.08
Net Interest Cover Times 2.50 1.81 2.63 5.08 7.31 12.67 15.92 11.55 10.90 13.88
ROCE % 5.89 4.30 5.22 4.34 4.22 6.50 7.27 7.42 9.44 12.83
ROE % 3.29 1.31 2.48 3.85 5.00 6.98 7.20 6.86 9.39 16.41
Basic EPS ` 7.56 (0.64) 4.48 7.09 8.88 11.69 11.17 10.82 14.82 22.23
Diluted EPS ` 7.55 (0.64) 4.48 7.09 8.87 11.68 11.16 10.81 14.82 22.11
Cash EPS ` 14.49 8.95 8.53 11.22 12.55 15.29 14.76 14.58 19.10 26.80
Dividend per Share ## ` 1.10 1.00 1.00 1.00 1.40 1.55 1.50 1.35 1.35 1.85
Capital Expenditure (Cash outfl ow) ` Crore 1,041 1,399 2,073 3,458 5,531 7,168 5,749 2,642 1,001 909
Foreign Exchange earnings on Export ` Crore 15,663 12,490 13,334 8,292 7,572 7,857 7,096 5,268 5,148 6,434
Debt Equity Ratio Times 0.57 0.68 0.78 0.75 0.73 0.45 0.30 0.23 0.35 0.48
Book value per Share ` 212.55 205.79 180.41 177.92 177.44 167.31 155.14 145.87 139.73 142.09
Market Capitalisation ` Crore 43,436 18,018 26,638 29,266 17,538 24,774 40,040 34,682 8,850 20,260
Number of Equity Shareholders Nos. 319,783 392,888 338,655 361,686 441,166 383,724 320,965 339,281 435,064 335,337
Number of Employees Nos. 23,679 24,118 21,976 20,902 20,238 19,975 19,341 19,539 19,867 19,667
Average Cash LME (Aluminium) US$ 1,688 1,592 1,888 1,773 1,976 2,317 2,257 1,868 2,234 2,623
Average Cash LME (Copper) US$ 5,152 4,852 6,556 7,103 7,855 8,485 8,140 6,112 5,885 7,521
* Balance Sheet items are translated at closing exchange rate and Profi t and Loss items are translated at average exchange rate.
** Including Intangible assets under development.
# Financial restructuring scheme formulated by the Company under the provisions of the Companies Act, approved by the Bombay High Court, to deal
with various costs associated with its organic and inorganic growth plan.
## Proposed/Interim Dividend for the Period.
@ Figures for FY 2016-17 and FY 2015-16 are as per Ind AS compliant fi nancial statements. Previous periods fi gures are as per Previous GAAP fi nancial
statements.
2 Excellence by Design
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A B R I D G E D
FINANCIAL HIGHLIGHTS - CONSOLIDATED Annual Report 2016-17
(` crore)
2016-17 @ 2016-17 @ 2015-16 @ 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 CIAL GHTS
PSaRlOesF aITnAdB OILpIeTrYating Revenues US$ 1in5 M,3n0 6* 102,631 101,202 106,696 90,007 82,243 82,549 73,703 61,762 67,469 61,841 FINANHIGHLI
Less: Cost of Sales 13,450 90,184 92,387 97,751 81,721 74,406 74,365 65,775 52,017 64,500 55,206
Operating Profi t 1,856 12,447 8,815 8,944 8,286 7,837 8,184 7,929 9,746 2,970 6,635 N
Other Income 166 1,111 1,189 1,105 1,017 1,012 783 513 323 691 656 SIO
Less: Depreciation, Amortization and Impairment 667 4,468 4,507 3,591 3,553 2,861 2,864 2,759 2,784 3,038 2,488 USS
LPISInnerhvvosaeefisr sste:tt bImminnetee fePnnorrtterosses, fi t ( SNt Ea/hx en(acLtdr eooe pFs fi tsinTni)o a aEinxnnqa) cEul eiIqtt yCeu mihAtyacs r Acgaocenucsdno tTueandxt ed 48 95(469) 53,, 73(244582) 5, 131367422 42,, 121787805 23,,70 046297 23,, 09(170699) 14,,73 545850 13,, 88(534793) 16,,11 08(341) 1 (,6 2(032578)) 12,, 891450940 AGEMENT DISCAND ANALYSI
N
Profi t before Tax and Exceptional Items 495 3,323 534 2,455 3,116 3,893 4,395 3,786 6,178 (642) 3,054 A
M
Exceptional Income/(Expenses) (Net) (1) (8) (577) (1,940) (396) - - - - - -
Profi t/ (Loss) before Tax from Continuing
Operations 494 3,315 (43) 515 2,720 3,893 4,395 3,786 6,178 (642) 3,054 S’
Less: Tax Expenses 214 1,433 498 256 525 886 786 964 1,829 (954) 641 ORRT
TO
Profi t/ (Loss) from Continuing Operations 280 1,882 (541) 258 2,195 3,007 3,608 2,822 4,349 312 2,413 CP
EE
Profi t/ (Loss) from Discontinued Operations (Net of Tax) 0 0 (161) - - - - - - - - DIRR
Profi t/ (Loss) before Non-Controlling Interest 280 1,882 (702) 258 2,195 3,007 3,608 2,822 4,349 312 2,413
Less: Non-Controlling Interest in Profi t/ (Loss) (3) (18) (451) (596) 20 (20) 211 366 424 (172) 219
Net Profi t/ (Loss) for the Period 283 1,900 (251) 854 2,175 3,027 3,397 2,456 3,925 484 2,193 S
BExupseinnessess Radejcuostnesdt raugcatiinosnt RBeRsRe (rNvee t( BofR TRa)x #) - - 682 97 86 - 500 (3,439) 304 4,617 - USINESEPORT
Profi t/ (Loss) for the Period had the expenses & BY R
nFoINt AadNjCusIAteLd PaOgaSinITsItO BNRR 283 1,900 (933) 757 2,089 3,027 2,896 5,896 3,621 (4,133) 2,193 BILITY SIBILIT
Gross Fixed Assets (excluding CWIP) AN
NO
Capital Work-in-Progress (CWIP) ** 18 ,268804 12 11,,811846 12 43,,251242 1 1041,,191410 2837,,095194 3630,,803544 2523,,799681 4 98,,225037 4 55,,860212 4 26,,924290 4 22,,415172 USTAIRESP
Less: Accumulated Depreciation, Amortization S
and Impairment 5,627 36,499 37,849 29,981 26,750 22,126 18,661 15,802 16,622 14,404 7,405
Net Fixed Assets 13,337 86,501 89,887 86,070 84,223 71,763 58,098 41,657 34,801 34,765 37,164
T
Investments 2,337 15,157 12,438 12,346 12,961 12,601 10,551 10,855 11,246 10,389 14,008 OR
ONCeathtp eCitra uNlr Eroemnn-tpC Alousyrsreeedntst Assets /(Liabilities) (Net) 1( 162,,,259744826) 1 01(896,,,285881923) 1 01(885,,,850574904) 1 10(767,,,257375512 ) 1 10(688,,,925284499 ) 19(664,,,596709312) 17(514,,,776576812) 16(310,,,137430200) 4( 357,,,912378821) 4( 235,,,803115115) 5( 441,,,122755244) CORPORATE RNANCE REP
E
Less: Loan Funds 9,839 63,817 67,552 68,467 66,163 57,603 41,042 29,460 23,999 28,310 32,353 V
O
Less: Non-Controlling Interest 1 6 381 956 1,781 1,759 1,709 2,217 1,737 1,287 1,615 G
Net Worth 7,102 46,059 40,607 38,329 40,605 35,330 31,911 29,023 21,545 15,758 17,286
Net Worth represented by :
EOqthueitry E Sqhuaitrye: Capital 34 223 205 207 206 191 191 191 191 170 123 OLDERATION
HM
SEqhauritey WCaormrapnotsnent of Compound - - - - 6 541 541 - - - 140 HARENFOR
SI
Financial Instruments 1 4 3 - - - - - - - -
Reserves and Surplus 6,433 41,723 36,443 38,122 40,393 34,597 31,179 28,832 21,353 15,588 17,023
Other Comprehensive Income 634 4,109 3,956 - - - - - - - - AL RT
RATIOS AND STATISTICS 7,102 46,059 40,607 38,329 40,605 35,330 31,911 29,023 21,545 15,758 17,286 SOCIREPO
Unit 2016-17 @ 2015-16 @ 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
Operating Margin % 12.13 8.71 8.38 9.21 9.53 9.91 10.76 15.78 4.40 10.73 S
T
Net Margin % 1.85 (0.25) 0.80 2.42 3.68 4.12 3.33 6.36 0.72 3.55 N
Gross Interest Cover Times 2.36 1.91 1.95 1.85 2.04 3.16 3.56 6.99 2.35 3.30 NE EME
NROetC InEterest Cover Tim e%s 28..3267 15..9056 25..4991 35..4340 46..2362 58..1107 94..5396 1 59..4112 12..3978 93..3974 NDALOL STAT
RBOasEic EPS %` 94..2122 ((40..5652)) 42..1243 1 05..9316 1 58..8517 1170..7644 1 28..8446 2128..1272 33..2017 1172..0649 STAANCIA
Diluted EPS ` 9.21 (4.55) 4.13 10.91 15.81 17.74 12.83 22.16 3.21 16.95 FIN
Cash EPS ` 30.91 20.78 21.53 28.73 30.75 32.70 27.25 37.88 23.40 36.38
Capital Expenditure (Cash outfl ow) ` Crore 2,938 4,245 5,978 9,424 11,871 12,512 7,909 4,276 2,675 2,786
Debt Equity Ratio Times 1.39 1.66 1.79 1.63 1.63 1.29 1.02 1.11 1.80 1.87 TS
B* **#o BIFnoiancklla auvnndaccliunieaeg lS rpIehnesetrate rSntu ghcitiateburmlerei sn a gas rsseec thtsrea umnnsedla fetorer ddm eauvtlea cltoleopdsm ibneygn teth.xec Choanmgpea rna`yt eu nadned 2r 0Pth6roe.8fi p3t r aonvdis iL1oo9ns8ss. o2 if1t et hme s1 C 8a5ore.m6 t1pra ann si1el9as6t eA.6dc7 ta, ta a p1vp8er4ora.v5ge3ed eb xy1c 6thh6ae.n6 Bg8o e mr a1bt5ae1y.. 6H1ig h 1C1o2u.6rt0, to d e9a2l. 6w8i th v1a4r0io.8u6s ONSOLIDATED CIAL STATEMEN
costs associated with its organic and inorganic growth plan. CN
A
@ Figures for FY 2016-17 and FY 2015-16 are as per Ind AS compliant fi nancial statements. Previous periods fi gures are as per Previous GAAP fi nancial statements. N
FI
Excellence by Design 3
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Hindalco Industries Limited
MANAGEMENT DISCUSSION AND ANALYSIS
FY17 Revenue Mix %
EBITDA (` Crore)
Satish Pai
Managing Director
HINDALCO: Excellence by Design FY17 EBITDA Mix %
Hindalco Industries Limited, the metals Flagship
Company of Aditya Birla Group (ABG), is amongst the
industry leader in aluminium and copper segments.
With a consolidated turnover of around USD 15 billion,
Hindalco is the world’s largest aluminium rolling company
and one of Asia’s major integrated producers of primary
aluminium. Its state-of-the-art copper facility is one of
the world’s largest custom smelters at a single location.
During the year accelerated deleveraging, supported
by strong business performance, helped signifi cantly
to improve the consolidated Net Debt to EBITDA of the Operational and Financial Highlights:
Company. • Year of stable operations – achieved highest
Aluminium production at 1.3 million tonnes and
Consolidated Financials
Alumina production at 2.9 million tonnes.
Revenue (` Crore)
• Consolidated Revenue stood at ` 102,631 Crore
for the FY17.
• Record Consolidated EBITDA at ` 13,558 Crore up
36 percent over the previous year.
(cid:2) Record EBITDA for Hindalco standalone
stood at ` 5,819 Crore.
(cid:2) Record Adjusted EBITDA (excluding metal
price lag) up 13% to USD 1.1 billion at Novelis.
44 Excellence by Design
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