Hindalco Industries Limited — PPTs, 12-05-2025: Investor Presentation

1. Financial Highlights:

Novelis posted net sales of $4.6 billion, up 13% YoY, driven by higher aluminum prices and a 1% rise in shipments to 957 kt. Full-year sales increased 6% to $17.1 billion, with shipments up 2% to 3,757 kt supported by strong beverage packaging and aerospace volumes. Quarterly net income surged 77% YoY to $294 million ($262 million excluding special items), while annual net income grew 14% to $683 million ($764 million excl. special items). Adjusted EBITDA declined 8% QoQ to $473 million and 4% YoY to $1.8 billion, pressured by scrap price inflation and higher costs. EBITDA per tonne fell 9% quarterly to $494 and 6% annually to $480. Net leverage stands at 2.9x with $2.8 billion liquidity. Capex rose 24% to $1.7 billion.

2. Strategic Initiatives & Growth Drivers:

Novelis is accelerating sustainability-driven capacity with a $5 billion multi-year capex plan, having committed $2.3 billion through FY25. Key projects include a 600 kt Bay Minette plant expected by FY27 and new recycling centers in the U.S. and U.K. aimed at boosting scrap use and cutting emissions. The company is advancing scrap input diversification and operational improvements via its Novelis Operating System. FY26 capex guidance is $1.9-$2.2 billion.

3. Business Developments:

No new acquisitions or partnerships were disclosed. Growth efforts focus on organic expansion through recycling center ramp-ups and debottlenecking rolling capacity at sites in the U.S., South Korea, and Brazil to improve throughput and efficiency.

4. Market Position & Competitive Advantage:

Novelis retains its global leadership in aluminum rolling and recycling, emphasizing sustainable, high recycled-content products (63% recycled content). Its scale and diversified portfolio are anchored by a resilient beverage packaging segment (60%) and robust aerospace and specialty markets. Leadership in recycling and sustainability initiatives supports competitive differentiation amid rising scrap costs.

5. Investor Implications:

Strong volume momentum in key segments and disciplined capex underpin positive growth potential. Execution risk exists due to scrap price volatility and cost inflation, but efficiency programs and scrap diversification mitigate pressures. Solid liquidity and balanced capital allocation reflect prudent management pursuing sustainable, long-term value creation.