Hindalco Industries Ltd
Hindalco Industries Ltd (HINDALCO)

Hindalco Industries Ltd (HINDALCO)

₹383.11.91%

Key Stats

₹379.1
Day's Price Range
₹389.45
₹308.95
52-Week Price Range
₹636
1 Month Return-5.87 %
3 Month Return13.12 %
1 Year Return-19.37 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 3
5.76
EPS
Rank 5
₹67.72
BVPS
Rank 5
₹352.19
Dividend Yield
Rank 7
0.91%
ROE
Rank 13
10.54%
Price To Book Ratio
Rank 1
1.1
Debt To Asset
Rank 3
0.66

Company Information

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. A USD16.7 billion metals powerhouse Hindalco is the worlds largest aluminium rolling and recycling company and a major player in copper. It is also one of Asias largest producers of primary aluminium.The companys aluminium units across the globe encompass the entire gamut of operations from bauxite mining alumina refining and aluminium smelting to downstream rolling extrusions foils along with captive power plants and coal mines. Their copper unit Birla Copper produces copper cathodes continuous cast copper rods and other byproducts such as gold silver and DAP fertilisers.The companys units are ISO 9001:2000 ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an integrated management system IMS combining ISO 9001 ISO 14001 and OHSAS 18001 into one business excellence model. The company has been accorded the Star Trading House status in India. The companys aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the London Metal Exchange LME. Their copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation. Hindalco Industries Ltd was incorporated in the year 1958. In the year 1962 the company commenced production with an initial capacity of 20000 mtpa of aluminium metal and 40000 mtpa of alumina at Renukoot Uttar Pradesh. In the year 1965 they commissioned downstream capacities in Rolling and Extrusion Mills at Renukoot. In the year 1968 the company commissioned Renusagar Power Plant.In the year 1994 the company made a huge expansion modernisation and diversification programme in their working areas. In the year 1998 foil plant of the company came to existence at Silvassa. Also the company attained ISO 14001 EMS certification during the year. In the year 1999 the company commenced aluminium alloy wheels production at Silvassa. Also they expanded the metal capacity at Renukoot to 242000 tpa. In the year 2000 the company acquired the controlling stake in Indian Aluminium Company Ltd Indal with 74.6 per cent equity holding. The company entered The Asia Top 25 list of the CFO Asia Annual Report Survey the only Indian company in 2001. In the year 2002 the company commissioned the ninth potline at an outlay of Rs 1 800 crore. They made a major corporate restructuring to create a nonferrous metals powerhouse. During the year Indo Gulf Corporation Ltds copper business Birla Copper was amalgamated with the company with effect from April 1 2002. In the year 2003 the company through Aditya Birla Minerals Ltd ABML acquired Nifty Copper Mine. Also in November 2003 ABML acquired the Mt Gordon copper mines. The company divested 8.6 holding in Indo Gulf Fertilizers Ltd. Also they made brownfield expansion of aluminium smelter at Renukoot to 345000 tpa.In the year 2004 the company expanded the copper smelter to 250000 tpa. In the year 2005 all business of Indal expect for the Kollu Foil plant in Andhra Pradesh merged with the company. They commissioned copper III expansion taking total capacity to 500000 tpa. Also the company signed a MoU with state governments of Orissa and Jharkhand for setting up Greenfield alumina refining smelting and power plants.In the year 2006 the company made a joint venture with Almex USA for manufacture of high strength aluminium alloys. The company singed an MoU with government of Madhya Pradesh for a Greenfield aluminium smelter in Siddhi. In March 2006 the company acquired an aluminium rolling mill and wire rods facility situated at Mauda Nagpur from Asset Reconstruction Company India Ltd ARCIL belonging to Pennar Aluminium Company Ltd. In May 2006 the company entered into a joint venture with Essar Power M.P. Ltd to develop and operate mines at Mahan Madhya Pradesh. In 2007 Hindalco created history in the Indian aluminium industry by acquiring Novelis Inc. a global leader in aluminium rolling and can recycling. In May 2007 Novelis became a subsidiary of Hindalco with the completion of acquisition process. The company acquired Alcons 45 equity stake in Utkal Alumina project makes the company the 100 project owner. In the year 2008 the company expanded the alumina at Muri.During the year 200910 the company completed the Muri Alumina Refinery from 110000 tpa to 450000 tpa. They completed the expansion Hirakud smelter from 143000 tpa to 155000 tpa. In October 5 2009 the company incorporated a whollyowned subsidiary by the name Mauda Energy Ltd for generation of power to be used captively. During the year 201011 the company completed the Smelter expansion at Hirakud from 155 KTPA to 161 KTPA. In March 4 2011 the company dissolved the Indal Exports Ltd. Also A V Aluminium in Canada was merged with Novelis Inc.In 2011 Hindalco refinanced US4 billion debt to finance its acquisition of Novelis to enable strategic flexibility for growth. Hindalco achieved financial closure of two projects through debt financing in 2011 viz. Utkal Alumina for Rs 4906 crore and Mahan aluminium for Rs 7875 crore.On 10 April 2012 Hindalcos US subsidiary Novelis Inc announced that it had signed an agreement with the Changzhou National HiTech district to build the companys first automotive sheet manufacturing facility in China.On 17 September 2012 Hindalco Industries announced that it had achieved financial closure for its Rs 13195 crore greenfield aluminium smelter project at Lapanga in Odisha. Hindalcos Utkal Alumina Refinery became operational in 2013. The company also commissioned Hirakud Flat Rolled Products plant in 2013.On 11 August 2015 Hindalco Industries announced that credit rating agency CRISIL has downgraded LongTerm rating of the companys bank facilities and Non Convertible Debentures from AA/Negative to AA/Stable.Hindalcos Mahan Aluminium and Aditya Aluminium smelters and Utkal refinery became operational in 2015. The company acquired the Gare Palma Coal mines in Chhattisgarh and the Kathautia and Dumri Coal mines in Jharkhand through auction in 2015.On 14 September 2016 Novelis Inc. announced the completion of the previously announced offering of 1.5 billion aggregate principal amount of 5.875 senior notes due 2026 by Novelis Corporation an indirect whollyowned subsidiary of Novelis. Hindalcos greenfield projects Mahan Aluminium Aditya Aluminium and Utkal Alumina ramped up to full capacity in 2016.Hindalco successfully raised USD 500 million through Qualified Institutional Placement QIP in March 2017. There was a strong participation from FIIs and long only investors generating demand in excess of USD 1.5 billion 3x subscription. The QIP was priced at zero discount to the previous days closing share price. Accordingly the company Issued and allotted 176827659 equity shares of Re 1 each at the issue price of Rs 189.45 per equity share on 09th March 2017 vide Qualified Institutional Placement.Novelis entered into a joint venture agreement in May 2017 with Kobe Steel Japan to sell 50 per cent of its ownership interest in its Ulsan South Korea facility for USD 315 million. Located in the industrial hub of Korea Novelis Ulsan facility focuses on the production of rolled aluminum sheet for a variety of markets in Asia. In FY 2017 Hindalco divested Aditya Birla Minerals Limited Australia for Rs 367 crore. With the new coal linkage in FY 2017 coal security improved to over 60 per cent of the annual requirement of Hindalcos domestic aluminium business. In FY 2017 Gare Palma IV/4 Coal Mines and Gare Palma IV/5 Coal Mines reached their peak capacity. The operations at Kathautia Mines commenced in February 2017.During the fiscal year 2018 the companys subsidiary Novelis Inc completed JV to establish Ulsan Aluminium in South Korea by selling approximately 50 its ownership to Kobe Steel for US 314 million which have helped to unlock the value. Novelis with its objective to invest in world class assets and technical capabilities to position itself to meet the increasing global demand for aluminium from the Automotive market announced its plans to setup a 200 Kt automotive finishing facility in Guthrie Kentucky US which is expected to be commissioned in CY 2020. Novelis has agreed to acquire the operating facilities and manufacturing assets at its plant in Sierre Switzerland that has been historically leased.Aditya Birla Nuvo Ltd. got amalgamated with Grasim Industries Ltd. Upon amalgamation financial service business got demerged from Grasim Industries Ltd. and transferred to Aditya Birla Financial Services Ltd. Pursuant to the scheme of amalgamation between Aditya Birla Nuvo Limited ABNL and Grasim Industries Limited Grasim having record date of 6th July 2017 the Company received 12975618 shares of Grasim in exchange of 8650412 equity shares it held of ABNL as at record date making total equity shares held in Grasim to 28222468. Further pursuant to the scheme of demerger of Aditya Birla Capital Limited ABCL formerly Aditya Birla Financial Services Limited from Grasim having record date of 20th July 2017 the Company received 39511455 equity shares of ABCL for 28222468 equity shares it held of Grasim as at record date.During the year 201718the company spent towards capital expenditure relating to Aluminium and Copper segments amounting to Rs 1388.07 crore and Rs 236.50 crore respectively.The company bagged India Manufacturing Excellence Awards 201718 Silver Certificate for Manufacturing EffectivenessMahan facility.During the FY2019the company spent capital expenditure relating to Aluminium and Copper segments amounting to Rs 911.75 Crore and Rs 205.98 Crore respectivelyThe companys subsidiary Novelis signed a definitive agreement to purchase Aleris Corp for US 2.6 billion in July 2018. This will strengthen its leadership position in the fastest growing automotive segment thereby enhancing its Asia operations with full metal chain integration in China further diversifying its portfolio with its entry into the aerospace segment. This transaction is expected to close in FY20 post all the pending regulatory approvals.The Board of Directors in their meeting on 09th August 2019 had approved the issuance of Commercial Papers for an amount not exceeding Rs 900 Crore. Further on 22nd November 2019 the Company allotted 18000 securities at Rs 900 Crore issue size maturing on 20th February 2020 on Private Placement.On 14th April 2020 Novelis completed the acquisition of USBased Aleris Corp. The integration process has commenced while driving synergies and unlock value. Divestment procedures for automotive assets in Lewisport in the US and Duffel in Europe is underway.During the year ended 31/03/2020 capital expenditure relating to Novelis Aluminium Copper and All Other Segments are Rs 4462 Crore Rs 1987 Crore Rs 109 Crore and Rs 32 Crore respectively.The company recognised as Aluminium Industry Leader for its sustainability performance in the 2020 edition of the SP Dow Jones. In April 2020 Novelis availed shortterm loan to the tune of Rs 8363 Crore USD1.1 billion for the purpose of funding a portion of the consideration payable in connection with the acquisition of Aleris. This loan has been prepaid in full during the year ended 31 March 2021. On 30 September 2020 the Group has completed the sale of its assets at Duffel Belgium to ALVANCE the international aluminum business of the GFG Alliance at a consideration of Rs 2675 Crore EURO 310 million as of 30 September 2020. Divestiture of Duffel was a precondition to the acquisition of Aleris as determined by the European Commission and Chinese State Administration for Market Regulation SAMR. At the transaction date the Group has received Rs 1812 Crore EURO 210 million in cash. Both the parties have agreed to a postclosing arbitration process on the remaining Rs 863 Crore EURO 100 million as of 30 September 2020. On November 8 2020 the Group entered into a definitive agreement with American Industrial Partners AIP for the sale of Lewisport and the sale was completed on 30 November 2020 transaction date for Lewisport business. Upon closing the Group has received Rs 1335 Crore USD 180 million in cash proceeds. In addition the Group has recorded a Rs 123 Crore USD 17 million receivable for net working capital adjustments. The sale has resulted into a loss of Rs 17 Crore USD 2 million net of tax.
OrganisationHindalco Industries Ltd
HeadquartersMumbai
IndustryNon Ferrous Metals