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5	5	= Overview =
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7		-Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. With a consolidated turnover of US$18.7 billion, Hindalco is an industry leader in aluminium and copper.{{footnote}}http://www.hindalco.com/about-us{{/footnote}}
	7	+Hindalco Industries Limited (NSE:HINDALCO) is the metals flagship company of the Aditya Birla Group. With a consolidated turnover of US$18.7 billion, Hindalco is an industry leader in aluminium and copper.{{footnote}}http://www.hindalco.com/about-us{{/footnote}}
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9	9	Hindalco’s acquisition of Aleris Corporation in April 2020, through its subsidiary Novelis Inc., has cemented the company's position as the world’s largest flat-rolled products player and recycler of aluminium.
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144	144	== Aluminium Segment ==
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146		-CY 2018 was a highly volatile year for the aluminium industry with the US being a pivot for major events. The first half of the year was completely dominated by the US sanctions on UC Rusal and the imposition of Section 232, i.e., import tariffs of 10% on all aluminium products. The second half was impacted by the eruption of trade war between the US and China. Alumina supply was also impacted during the year due to disruptions at one of the world’s biggest refineries outside China, pushing alumina prices to an all-time high of $700/tonne in CY 2018.{{footnote}}http://www.hindalco.com/our-businesses/hindalco-brands{{/footnote}}
	146	+CY 2018 was a highly volatile year for the aluminium industry with the US being a pivot for major events. The first half of the year was completely dominated by the US sanctions on UC Rusal and the imposition of Section 232, i.e., import tariffs of 10% on all aluminium products. The second half was impacted by the eruption of trade war between the US and China. Alumina supply was also impacted during the year due to disruptions at one of the world’s biggest refineries outside China, pushing alumina prices to an all-time high of $700/tonne in CY 2018.{{footnote}}http://www.hindalco.com/upload/pdf/hindalco-annual-report-2019.pdf{{/footnote}}
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148		-[[http:~~/~~/www.hindalco.com/upload/pdf/hindalco-annual-report-2019.pdf>>url:http://www.hindalco.com/upload/pdf/hindalco-annual-report-2019.pdf]]
149		-
150	150	The US-China trade war dampened the global economic environment with most of the major economies experiencing a slowdown in growth, which in turn impacted aluminium consumption. In CY 2018, primary aluminium consumption growth moderated to 3% y-o-y from 6% y-o-y in CY 2017. The world, excluding China, reported aggregate consumption growth of around 2% in CY 2018, down from 3% in CY 2017, owing to subdued demand in Japan, the Middle East, Brazil, and Europe, while demand growth in North America remained flat at 2% y-o-y. Among user industries, only the packaging sector witnessed growth in CY 2018 versus CY 2017. However, consumption growth moderated in the construction, electrical, machinery, equipment and the transportation sectors.
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152	152	China in CY 2018 struggled on two fronts – the trade with the US and moderation in the domestic economy. Consequently, consumption growth slowed significantly to around 3% in the year from around 8% in CY 2017, owing to a sharp decline in demand from the transport, construction and electrical sectors.
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158	158	Imports continued to be a concern for domestic players, which accounted for nearly 60% of the market in FY 2018-19. Overall imports including scrap touched ~~2.3 Mt in FY 2018-19 from ~~2 Mt in FY 2017-18.
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	158	+== Copper Segment ==
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161		-
162		-Copper Segment
163		-
164	164	The copper market was also impacted by global uncertainties, trade disputes, slowing Chinese economy (constitutes 50% of global consumption) and strengthening US dollar. In addition, there were fears of major supply disruptions as labour contracts at many major mines, especially in Chile and Peru, were up for renewal during the year. However, all the negotiations were concluded without any disruptions.
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166	166	In CY 2018, concentrate production grew around 3.5%, with a majority of the production coming in the second half. However, concentrate output from the world's two biggest mines, Escondida in Chile and Grasberg in Indonesia fell, as the latter shifted from open cast to underground mining. The expectation of a likely disruption in CY 2018 led to a moderation in benchmark TC/RC to 21.1 c/lb from 23.7 c/lb in CY 2017.
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172	172	In the domestic market, demand surged to 10% in FY 2018-19 as compared with 2% in FY 2017-18. This was largely driven by growth in electrical and electronics and consumer durables sectors. However, slowing industrial growth was a concern during the year. Imports from ASEAN and FTA countries continued to put pressure on the domestic market. During FY 2018-19, imports recorded an increase of 20% as against a growth of 7% in the previous year. As a result, the overall share of imports in the domestic market increased from 37% in FY 2017-18 to 42% in FY 2018-19. The majority of the imports were in the categories of rods and wires.
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	170	+== Novelis ==
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175		-Novelis
176		-
177	177	Economic growth and material substitution continue to drive increasing global demand for aluminium and rolled products. With the exception of China, where can sheet overcapacity and high competition remain, favourable market conditions and increasing customer preference for sustainable packaging are driving demand for recyclable aluminium beverage cans.
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179	179	Meanwhile, demand for aluminium in the automotive industry continues to grow, justifying the investments made by Novelis in its automotive sheet finishing capacity in North America, Europe and Asia in recent years. The robust demand environment is also fuelling additional investments in Guthrie, Kentucky (US) and Changzhou, China.
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183	183	In FY 2018-19, Novelis announced its plans to expand rolling, casting and recycling capability in Pinda, Brazil. The company also signed a definitive agreement to acquire Aleris, pending regulatory approvals, which will further diversify Novelis’ global footprint and portfolio.
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	180	+= Financial highlights =
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186		-Financial highlights
	182	+On February 12, 2020, Hindalco Industries Ltd announced consolidated results for the third quarter ended December 31, 2019{{footnote}}https://www.bseindia.com/xml-data/corpfiling/AttachHis/0fee6aeb-7cdf-41b3-9b37-4324e37ea168.pdf{{/footnote}}
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188		-On February 12, 2020, Hindalco Industries Ltd announced consolidated results for the third quarter ended December 31, 2019{{footnote}}http://www.hindalco.com/our-businesses/hindalco-brands{{/footnote}}
	184	+== Novelis ==
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190		-[[https:~~/~~/www.bseindia.com/xml-data/corpfiling/AttachHis/0fee6aeb-7cdf-41b3-9b37-4324e37ea168.pdf>>url:https://www.bseindia.com/xml-data/corpfiling/AttachHis/0fee6aeb-7cdf-41b3-9b37-4324e37ea168.pdf]]
191		-
192		-Novelis
193		-
194	194	Novelis delivered a continued strong operational and financial performance in Q3 FY20. Total shipments of of flat rolled products (FRPs) were at 797 Kt, which is flat year-on-year. Beverage can sheet and automotive body sheet shipments, however, were higher by 4% and 3% respectively, driven by growing consumer preference for sustainable packaging and light-weight vehicles. Novelis recorded its highest Q3 EBITDA of US$ 343 million, a growth of 7% over the prior year. Adjusted EBITDA per ton was US$ 430 in Q3 FY20, up 7% year-on-year. Novelis reported a Net Income (excluding tax-effected special items) of US$ 132 million in Q3 FY20, an increase of 31% over Q3 FY19. Revenue was down 10% year-on-year at US$ 2.7 billion in Q3 FY20, mainly due to a decline in average base aluminium prices and local market premiums, partly offset by favourable recycling benefits.
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	188	+== Aluminium (Hindalco including Utkal Alumina) ==
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197		-Aluminium (Hindalco including Utkal Alumina)
198		-
199	199	Reported revenue of Rs. 5,467 crore in Q3 FY20 (Rs. 6,019 crore a year ago) was down 9%, due to lower realisations. EBITDA stood at Rs. 1,036# crore in Q3 FY20, compared to Rs. 1,252 crore in Q3 FY19. Stable operations in the Indian Aluminium Business helped achieve Alumina (including Utkal) and Aluminium metal production of 662 Kt and 330 Kt respectively in Q3 FY20. Aluminium Metal sales volume grew 2% to 328 kt in Q3 FY 20. Aluminium VAP (excluding wire rods) volumes remained flat year-on-year, at 75 kt
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	192	+== Copper ==
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202		-Copper
203		-
204	204	Overall production volumes (Copper Cathodes) were down 18% year-on-year to 86 Kt in Q3 FY20, compared to the prior year. The Copper Business’ Value Added Product (VAP) production was at 60 Kt, lower by 8% year-on-year. Total VAP sales were up 3% at 58 Kt in Q3 FY20, which is in line with market growth. Total copper metal sales were lower by 14%, at 84 Kt in Q3 FY20, versus 99 kt in Q3 FY19 on account of lower production. Revenue from the Copper Business was Rs. 4,774 crore in Q3 FY20 versus Rs. 5,943 crore a year ago. EBITDA was lower at Rs. 256 crore in Q3 FY20 compared to Rs. 490 crore in Q3 FY19, down by 48% year-on-year, primarily due to lower volumes and realisations in Q3 FY20
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206		-Consolidated Results
	196	+== Consolidated Results ==
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208	208	Hindalco’s Consolidated Revenue for Q3 FY20 stood at Rs. 29,197 crore compared to Rs. 33,213 crore in the same quarter last year. Total EBITDA was at Rs. 3,676 crore in Q3 FY20 (versus Rs. 4,080 crore in Q3 FY19), down by 10% year-on-year. Consolidated Profit before Exceptional Items and Tax was Rs. 1,487 crore in Q3 FY20 compared to Rs. 1,931 crore in the prior year, down by 23%. Profit After Tax (PAT) stood at Rs. 1,062 crore in Q3 FY20, down by 24%, compared to the third quarter of FY19. The consolidated net debt to EBITDA ratio was 2.65x as on December 31, 2019 versus 2.48x on March 31, 2019.
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	200	+== Business Updates ==
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211		-Business Updates
	202	+* .Novelis made excellent progress in advancing its major organic expansion projects in the U.S., China and Brazil. Notably, its greenfield automotive finishing plant in Guthrie, Kentucky, is in the commissioning process, with commercial shipments to customers expected to commence in the coming months.
	203	+* Novelis has received anti-trust approval from China for the Aleris acquisition. The European Commission is currently evaluating the suitability of the proposed buyer of Aleris’ Duffel, Belgium plant. In the U.S., arbitration proceedings are in progress
	204	+* In January 2020, Novelis successfully issued US$ 1.6 billion Bonds at 4.75% due in 2030, to repay its existing US$ 1.15 billion 6.25% Bonds, due in 2024 with net interest savings of around US$ 17 million per annum. Balance proceeds of these Bonds will be used to finance the ongoing Aleris acquisition.
	205	+* Utkal Alumina’s capacity expansion of 500 Kt is on track and is expected to be commissioned in December 2020.
	206	+* The Muri Alumina refinery re-started production in December 2019.
	207	+* Hindalco won the “Silver Shield” for Excellence in Financial Reporting for FY2018-19 awarded by The Institute of Chartered Accountants of India (ICAI).
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213		-.
	209	+= References =
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215		-Novelis made excellent progress in advancing its major organic expansion projects in the U.S., China and Brazil. Notably, its greenfield automotive finishing plant in Guthrie, Kentucky, is in the commissioning process, with commercial shipments to customers expected to commence in the coming months.
216		-
217		-Novelis has received anti-trust approval from China for the Aleris acquisition. The European Commission is currently evaluating the suitability of the proposed buyer of Aleris’ Duffel, Belgium plant. In the U.S., arbitration proceedings are in progress
218		-
219		-In January 2020, Novelis successfully issued US$ 1.6 billion Bonds at 4.75% due in 2030, to repay its existing US$ 1.15 billion 6.25% Bonds, due in 2024 with net interest savings of around US$ 17 million per annum. Balance proceeds of these Bonds will be used to finance the ongoing Aleris acquisition.
220		-
221		-Utkal Alumina’s capacity expansion of 500 Kt is on track and is expected to be commissioned in December 2020.
222		-
223		-The Muri Alumina refinery re-started production in December 2019.
224		-
225		-Hindalco won the “Silver Shield” for Excellence in Financial Reporting for FY2018-19 awarded by The Institute of Chartered Accountants of India (ICAI).
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231		-References
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233	233	{{putFootnotes/}}