HINDALCO

INDUSTRI
ES
BY JAIMIN RAMANI
INTRODUCTION
Hindalco Industries Limited is a flagship company of the
Aditya Birla Group and a leading player in the global metals
industry.
Established in 1958, it is one of the world's largest producers
of aluminum and copper, with a strong presence across the
value chain from mining to finished products.
Hindalco operates in more than 10 countries and serves
diverse sectors, including automotive, construction,
packaging, and aerospace.
The company's commitment to sustainability, innovation, and
excellence has made it a leader in the industry, with a focus
on environmentally friendly practices and cutting-edge
technology.
PURPOSE
•Assess Financial Health: To evaluate the company's liquidity, solvency, and
overall financial stability.
•Evaluate Profitability: To analyze the profitability of the company, including
metrics like net profit margin, return on equity (ROE), and return on assets
(ROA).
•Operational Efficiency: To assess how efficiently the company utilizes its
resources, including asset turnover ratios, inventory turnover ratios, and
receivables turnover ratios.
•Investment Decision Making: To assist investors in making informed
decisions by analyzing Hindalco’s financial performance and comparing it with
other companies in the industry. To evaluate the company's potential for growth
and return on investment.
•Trend Analysis: To track changes in the company's financial performance over
time, identifying trends that may indicate future performance. To understand the
impact of market conditions, management decisions, and external factors on the
company’s financials.
COMPANY’S CORE BUSINESS

Hindalco Industries Limited, a flagship company of the Aditya Birla

Group, is a leading player in the metals industry. Its core business
revolves around the production of aluminum and copper.
Key Segments of Hindalco's Core Business:
1. Aluminum:
1. Upstream Operations: Involves bauxite mining, alumina
refining, and aluminum smelting.
2. Downstream Operations: Includes the production of
aluminum sheets, foils, extrusions, and other value-added
products.
3. Aluminum Products: The company provides products for
diverse industries, including automotive, construction,
packaging, and electrical.
2. Copper:
1. Smelting and Refining: Hindalco is one of the largest
producers of copper in India, with a fully integrated copper
smelting and refining plant.
2. Copper Products: The company produces continuous cast
copper rods, copper cathodes, and other by-products like
sulfuric acid and precious metals.
 Revenue From Operations [Net] Profit/Loss Before Tax
250000 25000

200000 20000

150000 15000

INCOME
100000 10000

50000 5000

STATEM
0 0
Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Mar-24 Mar-23 Mar-22 Mar-21 Mar-20

ENT 250000
Total Expenses
16000
Profit/Loss For The Period

14000
200000
12000

150000 10000
8000
100000 6000
4000
50000
2000
0 0
Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Mar-24 Mar-23 Mar-22 Mar-21 Mar-20
 ASSETS
250000

200000

150000

100000

50000

BALANCE
0
Mar-24 Mar-23 Mar-22 Mar-21 Mar-20

Total Non-Current Assets Total Assets

90000
Liabilities
SHEET
80000

70000

60000

50000

40000

30000

20000

10000

0
Mar-24 Mar-23 Mar-22 Mar-21 Mar-20

Total Non-Current Liabilities Total Current Liabilities

 FINANCIAL RATIOS

LIQUIDITY RATIOS Activity Ratios Profitability Ratios

3.5 9 16

3 8 14

7 12
2.5
6 10
2
5 8
1.5 4 6
1 3 4

0.5 2 2
1 0
0 Mar-24 Mar-23 Mar-22 Mar-21 Mar-20
Mar-24 Mar-23 Mar-22 Mar-21 Mar-20
0
Mar-24 Mar-23 Mar-22 Mar-21 Mar-20
Current Ratio (X) Quick Ratio (X) PBT Margin (%) Net Profit Margin (%)
Inventory Turnover Ratio (X) Inventory Turnover Ratio (X) Interest Coverage Ratio (%) Return on Networth / Equity (%) Return on Capital Employeed (%)
Return On Assets (%) Total Debt / Equity (X)
 CONCLUSION
• Hindalco's financial statements and ratios provide a comprehensive view of the company's
financial position and performance over the reporting period. The balance sheet reflects the
company's robust asset base, balanced management of liabilities and shareholder equity. The
income statement shows strong revenue growth and profitability, demonstrating the
company's operational efficiency and ability to generate consistent earnings.
• The financial ratios further highlight Hindalco's strengths in liquidity, solvency, and
profitability. Key ratios indicate that the company maintains a healthy liquidity position,
ensuring it can meet its short-term obligations. The solvency ratios suggest a stable capital
structure, with manageable levels of debt relative to equity. Profitability ratios indicate that
the company is effectively converting revenues into profits, reflecting strong operational
performance.
• Overall, Hindalco is in a solid financial position, with a well-balanced approach to managing
its assets, liabilities, and equity. The company's consistent financial performance and
favorable ratios suggest it is well-positioned to continue its growth trajectory and effectively
navigate future market challenges.
THANK YOU