Hindalco Industries Ltd. — Interim / Quarterly Report 2021

Aug 6, 2021

06th August, 2021

BSE Limited	National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers	Exchange Plaza, 5th Floor
Dalal Street	Plot No. C/1, G Block
Mumbai: 400 001	Bandra Kurla Complex
Scrip Code: 500440	Bandra (East)
	Mumbai – 400 051
	Scrip Code: HINDALCO
Mr. Daniel Schammo
Banque Internationale A
Luxembourg
Societe Anonyme
69, Route d'Esch
L-2953 Luxembourg
Fax No. 00 352 4590 2010
Tel. No. 00 352 4590-1

Dear Sir,

Sub: Outcome of Board Meeting of Hindalco Industries Limited ('the Company") held on 06th August, 2021

Re: Regulation 33 & 30 and other applicable Regulations of the Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In continuation to our letter dated 21st July, 2021, the Board of Directors of the Company in its meeting held today i.e. on Friday, 06th August,2021 have approved the "Unaudited Standalone and Consolidated Financial Results" of the Company for the quarter ended 30th June 2021.

The meeting commenced at 12:15 IST and concluded at 14:05 IST

Hindalco Industries Limited

6th & 7th Floor, Birla Centurion, Pandurang Budhkar Marg, Worli, Mumbai – 400030, India T:+91 22 66626666/62610555 | F:+912262610400/62610500 | W: www.hindalco.com Registered Office : Ahura Centre, 1st Floor, B wing, Mahakali Caves Road, Andheri (East), Mumbai – 400093, India Corporate ID No: L27020MH1958PLC011238

Enclosed herewith are the following documents :

• 1. Press Release
• 1. Investor Presentation
• 1. Unaudited standalone and Consolidated Financial Results for the quarter ended 30th June, 2021 and Limited Review Report.

The same is also available on our website www.hindalco.com.

Further, the Trading Window for dealing in securities shall remain closed until 48 hours from this announcement. The same has been duly communicated to all the Designated Persons.

Thanking you,

Yours faithfully,

For Hindalco Industries Limited

Anil Malik President & Company Secretary

Encl: As above

Hindalco Industries Limited

6th & 7th Floor, Birla Centurion, Pandurang Budhkar Marg, Worli, Mumbai – 400030, India T:+91 22 66626666/62610555 | F:+912262610400/62610500 | W: www.hindalco.com Registered Office : Ahura Centre, 1st Floor, B wing, Mahakali Caves Road, Andheri (East), Mumbai – 400093, India Corporate ID No: L27020MH1958PLC011238

Media Release

HINDALCO REPORTS STELLAR CONSOLIDATED Q1 FY22 RESULTS

Novelis and Aluminium India Business drive highest-ever quarterly net profits

Key Highlights of Q1 FY22

• All-time high Consolidated EBITDA at ₹6,790 crore, up 188% YoY and 16% QoQ
• All-time high Consolidated PAT at ₹2,787 crore, up 493% YoY and 45% QoQ
• All-time high Novelis quarterly Adjusted EBITDA at \$555* million, up 119% YoY and 10% QoQ
• Novelis quarterly Adjusted EBITDA per ton at \$570*, up 75% YoY and 11% QoQ
• Novelis Net Income from continuing operations at \$303* million, up 597% YoY and 1082% QoQ
• All-time high quarterly India Business EBITDA at ₹2,513 crore, up 121% YoY; 32% increase sequentially
• All-time high quarterly India Business PAT at ₹1,037 crore, up 1135% YoY; 59% increase sequentially
• All-time high quarterly Aluminium India EBITDA at ₹2,352 crore, up 142% YoY and 29% QoQ; EBITDA margins of 37.5%, highest in last 13 years
• Consolidated Net Debt to EBITDA improved further to 2.36x as of June 30, 2021 vs the peak of 3.83x as of June 30, 2020
• S&P Global Ratings raised its issuer credit rating on Novelis to 'BB' from 'BB-'
• Credit Rating upgraded by CRISIL from 'AA' to 'AA+' with 'Stable' outlook for Hindalco bonds

*As per US GAAP

MUMBAI, August 06, 2021

Hindalco Industries Limited, the Aditya Birla Group metals flagship, delivered stellar results in Q1 FY22 recording its highest-ever quarterly net profits.

The Company's consolidated PAT was at ₹2,787 crore, which is a noteworthy increase of nearly 500% YoY. The results were driven by a strong performance by Novelis and India Business, supported by favorable macros, strategic product mix, and stability in operations. Novelis reported an all-time high quarterly EBITDA, as a result of upswing in demand for innovative and sustainable aluminium products and an outstanding operational performance.

Particulars	Q1 FY21	Q4 FY21	Q1 FY22
Revenue from Operations	25,283	40,507	41,358
Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA)
Novelis*	1,919	3,705	4,090
Aluminium	973	1,820	2,352
Copper	6 6	322	261
All Other Segments	1	1 3	(6)
Business Segment EBITDA	2,959	5,860	6,697
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments	(600)	(15)	9 3
EBITDA	2,359	5,845	6,790
Finance Costs	992	903	820
PBDT	1,367	4,942	5,970
Depreciation & Amortisation (including impairment)	1,551	1,722	1,649
in Profit/ (Loss) Investments (Net Tax) Share in Equity Accounted of	3	-	2
Profit before Exceptional Items and Tax	(181)	3,220	4,323
Exceptional Income/ (Expenses) (Net)#	(419)	3 4	230
Profit Before Tax (After Exceptional Item)	(600)	3,254	4,553
Tax	(31)	1,309	1,299
Profit/ (Loss) from Continuing Operations	(569)	1,945	3,254
Profit/ (Loss) from Discontinued Operations	(140)	(17)	(467)
Profit/ (Loss) After Tax	(709)	1,928	2,787
*As per US GAAP ; # Exceptional Income / (Expenses) for Q1FY22, exclude ₹346 crore (net of litigation cost of ₹9 crore) which represents the principal portion on PIS and COFINS related tax credit income as it is included in the Novelis segment result.
Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries Ltd., said, "This quarter we delivered record-breaking financial results despite the impact of the Covid second wave. Our robust financial performance, accelerated pace of deleveraging and the increasing strength of our balance sheet has been recognised by the market and is reflected in credit rating upgrades for both Novelis and Hindalco. The improvement is visible across all our business segments where we are seeing strong demand, plants running at capacity, and better margins. We continue to keep employees protected and de risk plant facilities by taking all Covid-appropriate measures. We have started FY22 at a strong pace and we are confident that our resilience against market swings will support us in continuing to deliver our best. More importantly, we believe our focus on setting and achieving carbon neutrality and other ESG goals will keep Hindalco in the leadership position as the world's most sustainable aluminium value-added player."

Table: Consolidated Financial Highlights for the Quarter ended June 30, 2021 (₹ Crore)

Business Segment Performance in Q1 FY22 (vs Q1 FY21)

Novelis

Novelis recorded its best-ever quarterly Adjusted EBITDA of \$555 million (vs \$253 million), up 119% YoY, on the back of higher volumes, favourable product mix and metal benefits, and a \$47 million gain related to a favourable decision in a Brazilian tax litigation.

Novelis achieved an Adjusted EBITDA per ton of \$570 in Q1 FY22, compared to \$327 in the prior year, an increase of 75% YoY. Excluding the non-recurring tax litigation benefit, Adjusted EBITDA per ton equates to \$522 in the first quarter of FY22.

Novelis' Net Income (excluding tax-effected special items) was \$260 million, up 1082% YoY, driven by higher Adjusted EBITDA. Revenue was \$3.9 billion (vs \$2.4 billion), up 59% YoY, due to higher shipments, global aluminium prices and market premiums. Total shipments of flat rolled products (FRPs) were at 973 Kt (vs 774 Kt), up 26% YoY, with strong demand across end-product markets particularly beverage packaging and specialty products, partially offset by some headwinds in the automotive industry on account of the semiconductor chip shortage.

Aluminium India

EBITDA was at an all-time high of ₹2,352 crore in Q1 FY22, compared with ₹973 crore for Q1 FY21, an increase of 142% YoY, primarily due to favourable macros, improved product mix and better operational efficiencies. EBITDA margins reached a 13-year high of 37.5% and continue to be among the best in the industry. Revenue was ₹6,267 crore in Q1 FY22 vs ₹4,436 crore in the prior year period. Aluminium India Business recorded metal production of 319 Kt vs 291 Kt in the corresponding period. Aluminium metal sales were flat YoY at 303 Kt. Aluminium VAP (excluding wire rods) sales volumes were at 82 Kt (vs 35 Kt), up 137% YoY, driven by a sharp recovery in the domestic market. VAP sales, as a percentage of total metal sales, were 27% this quarter vs 11% in the same quarter last year, in line with market recovery.

Copper

Successful ramp-up of Smelter-3, post shutdown in Q1 FY22. Copper Cathode production was at 63 Kt in Q1 FY22 (vs 41 Kt in Q1 FY21), higher by 52% YoY. While overall copper metal sales were at 80 Kt (vs 58 Kt in Q1 FY21), Copper Continuous Cast Rod (CCR) sales in Q1 FY21 were up 50%, at 46 Kt (vs 31 Kt in Q1 FY21), driven by market recovery. EBITDA for the Business stood at ₹261 crore compared to ₹66 crore in Q1 FY21, up 295% YoY. Revenue from the Copper Business was ₹7,094 crore this quarter, up 134% YoY, primarily due to higher global prices of copper.

Consolidated Results

Hindalco reported another best-ever quarterly financial performance in Q1 FY22 with EBITDA at ₹6,790 crore (vs ₹2,359 crore), up 188% YoY. The record results were driven by an outstanding performance by Novelis as well as India business, supported by a sharp recovery in all relevant markets, and improved macros. Consolidated Revenue for the first quarter stood at ₹41,358 crore (vs ₹25,283 crore), up 64% YoY. Consolidated PAT in Q1 FY22 was ₹2,787 crore, compared to a loss of ₹(709) crore in Q1 FY21, a jump of 493% YoY. Gross Debt declined by ₹16,345 crore and Net Debt fell by ₹10,389 crore as of June 30, 2021 from its peak on June 30, 2020. Consolidated Net Debt to EBITDA ratio improved further to 2.36x on June 30, 2021, from a peak of 3.83x on June 30, 2020.

Covid Response

Hindalco has prepared to tackle the third wave of Covid by fortifying its efforts to protect employees and the community.

Over 51,000 employees have been vaccinated with at least one dose. In some states, the Government is collaborating with Hindalco to vaccinate the local population at the Company's own hospitals and health centres. Hindalco's dedicated team of 77 doctors and 245 paramedics is working round the clock to serve employees and the community.

Hindalco has boosted medical infrastructure and equipped its own hospitals and health centres with critical care equipment such as CT scan machines, set up oxygen lines in remote locations to serve patients needing ICU care, and enhanced its lab testing facilities. Hindalco has strengthened its medical teams, including adding pediatricians, and upskilling its paramedics.

Business Updates & Recognition

• Aleris Integration work continues with \$100 million run-rate combination cost synergies achieved through the end of Q1 FY22.
• As part of the integration, expansion project in Zhenjiang, China, is expected to begin in the current year with investments of \$375 million over 3 years. This includes a new cold mill, automotive casting house, recycling capabilities, hot mill upgrade, etc.
• The Guthrie, Kentucky automotive finishing plants in the U.S. and in Changzhou, China are both ramping up well.
• Novelis' expansion of recycling, casting, and rolling facilities in Pinda, Brazil is on track, with commissioning expected in Q2 FY22.
• S&P Global Ratings raised its issuer credit rating on Novelis to 'BB' from 'BB-'in July 2021.
• Novelis launched an offering of two unsecured senior notes of \$750 million each, at a coupon of 3.250% and 3.875%, due in 2026 and 2031, respectively.
• 500 Kt Utkal Alumina expansion project to start commercial production in Q2 FY22.

• Credit Rating upgrade by CRISIL from 'AA' to 'AA+' with 'Stable' outlook, in July 2021, for bonds of Hindalco.
• CARE Ratings affirmed 'AA+' Credit Rating with Outlook upgraded from 'Negative' to 'Stable' in June 2021 for long-term loans and bonds of Hindalco.
• Hindalco received highest Short-Term Rating of 'A1+' from 'India Ratings' in June 2021, for issuance of Commercial Paper.

About Hindalco Industries Limited

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. An \$18 billion metals powerhouse, Hindalco is the world's largest aluminium company by revenues, and a major player in copper. It is also one of Asia's largest producers of primary aluminium.

Guided by its purpose of building a greener, stronger, smarter world, Hindalco provides innovative solutions for a sustainable planet. Its wholly-owned subsidiary Novelis Inc. is the world's largest producer of aluminium beverage can stock and the largest recycler of used beverage cans (UBCs). Hindalco's copper facility in India comprises a world-class copper smelter, downstream facilities, a fertiliser plant and a captive jetty. The copper smelter is among the world's largest custom smelters at a single location. Hindalco's global footprint spans 48 manufacturing units across 10 countries. Registered Office: Ahura Centre, 1st Floor, B Wing, Mahakali Caves Road Andheri (East), Mumbai 400 093; Website: www.hindalco.com; E mail: hindalco@adityabirla.com;Corporate Identity No. L27020MH1958PLC011238

Disclaimer: Statements in this "Media Release" describing the company's objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company's operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company's principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forwardlooking statement, on the basis of any subsequent development, information or events, or otherwise.

Hindalco Industries Limited

Q1 FY22 Earnings Presentation 06th August, 2021

Certain statements in this report may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company's operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company's principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.

Table of Content

• 1. Hindalco Sustainability Updates
• 1. Key Highlights Q1 FY22
• 1. Economy & Industry Updates Global & Domestic
• 1. Business Performance : Operational & Financial Q1 FY22
• Novelis
• Aluminium (India)
• Copper

• Consolidated

• Annexures :

• Consolidated Key Financials

• Hindalco (India) Business Key Financials
• Alumina Production Trend

• Novelis

• Aluminium (India)

• Copper

Hindalco (India) Sustainability Updates

Focus on Conservation: Waste, Water, Biodiversity

	Environment		Bauxite Residue (% Recycled)
Waste Recycling	• 82.7% of waste recycled and reused in Q1 FY22 • 100% of Red Mud from three out of four Alumina Refiners reused in Cement Industries. Utkal refinery is conducting pilot projects for Mine Backfilling and Roads • 89.3 % of Ash from Power Plants reused		27.5%	62.3%	53.2%
	• rd 3 Party assurance of Mines water inventory in progress inline with ISO	8.0%
ZLD & Water	14046. • Mouda ETP plant upgradation and RO plant stabilization completed • Successful Electrocoagulation pilot test for water separation from emulsion and fluoride reduction	FY 19	FY 20	FY 21	FY 22- Q1 YTD
	• Committed to ZLD at all sites by 2025, adding one site per year		Water Consumed & Recycled (mllion		m3)
	•		Consumption		Recycled
Green Cover	1st Miyawaki plantation (3-tier scientific afforestation) carried out in Aditya plant in the area of 400 m2 as per the Biodiversity Management Plan (BMP) by International Union for conservation of Nature (IUCN)	79.7	78.4	71.7
& Biodiversity	• Enhanced the green cover by 12 acres in Q1 FY22; cumulative green cover across all sites is spread over 4684.2 acres • Green belt enhancement plan developed for ten of the non-BMP sites based	18.6	18.9	16.0	18.4 4.0
	on revised Forest department's SOPs for Flora and Fauna conservation	FY 19	FY 20	FY 21	FY 22- Q1 YTD

Focus on Renewables & Safety

Onsite Renewable (Primarily solar)

• Potential ̴246 MW.
• FY22 52 MW implementation across 5 locations are on track (49 MW already implemented)
• FY23 32 MW Identified so far including floating solar

Other Initiatives

• Continuously exploring & evaluating large scale. Renewable projects with storage (Pumped Hydro).
• Grid upgrade to 400 KV initiated at Aditya. Timeframe – 2 Years.
• Evaluating emerging technologies on Carbon Capture (CCUS) Target for Pilot FY23.

Workforce Health & Safety

Renewable Energy

• SIF prevention program: 461 situations having risk identified and action plan for mitigation of 449 prepared and under implementation
• New Contractor Safety Management Program implementation status: SAQ score not less than 81% at each unit with plan to take it to 90% in Q2.
• In "Line of Fire" work situations: 1872 situation identified and control measures for more than 90% situation
• Digitization: e-permit implemented, Drone & Video Analytics for high-risk work like Confined Space Entry and Work at height
• "TapRoot" Software for RCA and incorporation BBS module in Enablon
• Corporate / Cross Entity Safety Audit: 43 additional SIF situation identified
• Review of Risk Assessment: 43289 activities having human intervention rescreened

Business Performance Key Highlights - Q1 FY22

Hindalco Industries Limited

7

Key Highlights : Q1 FY22

	▪ Shipments of 973Kt (774Kt), up 26% YoY driven by strong demand across all business segments
	▪ Record adjusted EBITDA at \$555 million (\$253 million), up 119% YoY on the back of higher volumes and favorable product mix, favorable metal benefits and a \$47 million gain related to a favorable decision in a Brazilian tax litigation
	▪ Adjusted EBITDA per ton at \$570 (\$327/t) up 75% YoY; \$522 per ton, excluding gain related to Brazilian tax litigation in Q1FY22
Novelis*	▪ Net Income from continuing operations at \$303 million (vs Loss of \$61 million in Q1 FY21); Net Income (excluding special items#) at \$260 million (\$22 million) up 1082% YoY
	▪ Aleris Integration work continues with \$100 million run-rate combination synergies achieved in Q1FY22
	▪ 22nd Credit Rating upgrades by S&P Global Ratings raised issuer rating to 'BB' from 'BB-' on July 2021
	▪ Launched an offering of two unsecured senior notes of \$750 million each, at a coupon of 3.250% and 3.875% due in 2026 and 2031 respectively.
	▪ Record quarterly EBITDA at ₹2,352 crore (₹973 crore) up 142%, on account of favorable macros, improved mix and better operational efficiencies
	▪ EBITDA margin at 37.5% (22%), highest in last thirteen years and continues to be one of the best in the industry
Aluminium	▪ Aluminium Metal sales at 303Kt (303Kt), was flat YoY
(India)	▪ Aluminium VAP (excluding wire rods) sales at 82Kt (35kt) up 137%, on account of sharp recovery in the domestic demand
	▪ 500Kt Utkal Alumina expansion commercial production to begin in Q2-FY22.

Note : Numbers in parenthesis() represent Q1 FY21 unless specified

*as per the US GAAP #Tax-effected special items include loss on extinguishment of debt, restructuring & impairment and metal price lag, in Novelis

Key Highlights : Q1 FY22 ...Contd.

Copper

▪ Successful ramp-up of Smelter-3 post shutdown in Q1 FY22. ▪ Cathode production was at 63Kt (41Kt) up 52% YoY ; CC Rods production was at 44Kt (26Kt) up 67% YoY ▪ Metal sales volumes at 80Kt (58Kt) up 36% YoY; CC Rods sales at 46 kt (31Kt), up 50% YoY with the market recovery ▪ EBITDA at ₹261 crore (₹66 crore) up 295% YoY

Consolidated

▪ Record quarterly EBITDA at ₹6,790 crore (₹2,359 crore), up 188% YoY ▪ PAT for continuing operations at ₹3,254 crore (vs loss of ₹569 crore) ▪ Strong Treasury Balance of \$872 million in Novelis and ₹9,425 crore in Hindalco India at the end of June 2021 ▪ Gross Debt is down by ₹16,345 crore and Net Debt is down by ₹10,389 crore as on June 30, 2021 from its peak on June 30, 2020 ▪ Net Debt to EBITDA has significantly improved to 2.36x as at June 30, 2021 (vs 3.83x as at June 30, 2020) ▪ Credit Rating upgrade by CRISIL from 'AA' to 'AA+' with 'Stable' outlook in July 2021 for bonds of Hindalco ▪ CARE Ratings also affirmed 'AA+' Credit Rating with Outlook upgraded from 'Negative' to ' Stable' in June 2021 for long term loans and bonds of Hindalco ▪ Received highest Short-Term Rating of 'A1+' from 'India Ratings' in June 2021 for issuance of Commercial Paper

Note : a) Numbers in parenthesis() represent Q1FY21 unless specified

Economy & Industry Updates Global & Domestic

Economy Updates

• Global growth is gradually recovering supported by large scale fiscal support and easing of pandemic restrictions
• However, recovery is uneven and being held back by resurgence of Covid cases, slow vaccination progress and limited policy progress specially in EM
• GDP growth contracted 3.2 % in CY20 and is expected to rebound to 6.0% in CY21 and 4.9% in CY22 (Source : IMF, July 2021)
• Risks future path of pandemic, rising government debts, higher global inflation and slow pace of vaccine administration in EM

• India's economic recovery was interrupted by the second wave. Extent of economic damage likely to be lesser than the first wave
• Tapering of second wave, push in vaccination roll-out, pent up demand and easing of restrictions will drive economic momentum going forward
• The RBI estimates FY22 GDP growth at 9.5%, after a contraction of 7.3% in FY21. IMF latest forecasts for FY22 are also on similar lines
• Adverse supply shocks and rise in oil prices have also intensified upside risks to inflation which RBI is closely watching
• Downside risks- rising inflation, probable 3 rd wave of Covid and fiscal constraints

Global Aluminium Industry

H1 CY21 (vs H1 CY20)

• Global production grew by 6%, consumption increased by 14%, leading to deficit of 0.1 Mt
• China: Production increased by 9%, consumption grew by 12%, leading to deficit of 0.3 Mt
• World Ex-China: Production was up by 3%, consumption rose by 18%, reducing the surplus to 0.2 Mt

Q2 CY21 (vs Q2 CY20)

• Global production expanded by 7%, consumption grew by 12%, leading to overall deficit of 0.6 Mt
• China: Production rose by 9%, while consumption increased by 1%, leading to a deficit of 0.9 Mt
• World Ex-China: Production grew by 4%, consumption improved by 33%, leading to surplus of 0.3 Mt

Global aluminium prices continued to improve

• Q2 CY21 prices improved to \$2,399/t up from \$2,096 in Q1 CY21.
• Global aluminium prices in QTD (Q2CY21) is \$2,487/ton

Domestic Aluminium Industry

• In Q1 FY22, domestic demand is estimated to record 884 Kt (54% growth YoY) due to base effect; this demand is estimated to drop by 18% sequentially.
• In Q1FY22, lockdowns in the country, due to the second wave of Covid has impacted demand of automotive, which has subsequently led to a decline of imports of casting scrap in this quarter by around 10% sequentially
• Lockdowns and phased unlocking of markets has also led to softening of Electrical, Building & Construction, Consumer Durables, Industrial Machinery. However, demand was strong in food and pharma packaging for the overall domestic market.
• In Q1FY22, sequentially, other imports excluding scrap also strongly de-grew by 27%, while domestic sales fell by 19% YoY to 173 KT

Aluminium Flat Rolled Products (FRP) Industry

▪ The global FRP Demand is estimated to grow by ~9% in CY21 (vs CY20 contraction of ~4%) on account of demand recovery and base effect.

India FRP Demand is estimated to grow YoY due to low base effect and is expected to decline sequentially due to lockdown in the country Q1-FY22 on account of COVID 2 nd wave.

• Pharma and food packaging are expected to grow whereas other sectors such as consumer durables, automotive , B&C will face some headwinds
• Demand is estimated to recover in Q2-FY22 in a phased manner with unlocking in the country, post recovery from the 2 nd wave

Copper Industry (Global)

H1 CY21 (vs H1 CY20)

• Global copper production grew by 5% and Consumption grew by 9% YoY due to base effect
• China production and consumption both grew by 9% YoY
• World Ex China production grew by 2.5% YoY, where as consumption grew by 9% YoY

Q2 CY21 (vs Q2 CY20)

• Global copper production grew by 6% and consumption grew by 5% YoY
• China production grew by 7% YoY while consumption de-grew by 6% due to lower physical demand impacted by the steep rise in the global prices of copper
• World Ex China Production grew by 6% YoY whereas the consumption grew by 22% YoY on account of faster recovery

Copper Industry (Domestic)

• Domestic market demand grew by 30% YoY at 118 KT in Q1 FY22 vs 91 KT in Q1 FY21. In Q1FY22.
• Domestic refined copper demand declined by around 27% to 118 KT in Q1 FY22 from 161 KT Q4 FY21 due to softening of market impacted by lockdowns in the country due to 2nd wave of COVID-19.

Business Performance : Q1 FY22

Novelis

Operational Performance – Novelis

• Overall Shipments (KT) Record quarterly financial performance backed by favorable markets and operational excellence in Q1 FY22
• Shipments at 973 Kt in Q1FY22 up 26% YoY
• Automotive shipments are more than double the prior year despite some headwinds from the current semiconductor chip shortage impacting the automotive industry.
• Beverage packaging and specialty product shipments benefited from continuing strong market demand across all regions
• Expansion project updates:
  • Recycling, Casting and Rolling expansion in Pinda, Brazil on track with Recycling and rolling capacity to commission in Q2-FY22.
  • Automotive finishing plants in Guthrie, Kentucky in the US and Changzhou in China Customer qualifications and ramping up are in-line with expectations.
• Aleris Integration updates:
  • Integration work continues with \$100 million run-rate combination cost synergies already achieved in Q1-FY22 (Total Potential to exceed \$120 million)
  • Expansion project in Zhenjiang, China which is part of the integration, is expected to begin in the current year with capital investments of \$375 million over 3 years.
  • These investments include new cold mill, automotive casting house, recycling capabilities, hot mill upgrade, etc.

Financial Performance – Novelis

• Net sales in Q1 FY22 stands at \$3.9 billion up 59% YoY driven by a 26% increase in shipments, favorable product mix and higher average aluminum prices
• All time high adjusted EBITDA at \$555 million in Q1 FY22, up 119% YoY, on the back of higher volume and favorable product mix, as well as favorable metal benefits and a \$47 million gain related to a favorable decision in a Brazilian tax litigation.
• Adjusted EBITDA per ton at \$570/t in Q1 FY22, up 75% YoY; \$522/t, excluding gain related to Brazilian tax litigation Q1 FY22

Aluminium (India)

Aluminium Metal & VAP - Production and Sales in Kt

82

• Aluminium Metal Production up 9% YoY and 1% QoQ
• Aluminum VAP production was higher by 150% YoY in Q1 FY22
• Alumina production in Q1 FY22 was at 718 Kt up 15% YoY and 3% QoQ
• Sales: Aluminium Metal (Kt) Sales: Aluminium VAP# (Kt) Domestic Sales as % of total metal sales was 44% in Q1 FY22 (vs 20% in Q1 FY21)
• VAP sales were 27% as a % to total metal sales in Q1 FY22 (vs 11% in Q1 FY21.)

Financial Performance - Aluminium (India)

▪ Aluminium revenues were up 41% YoY, with higher global prices of aluminium in Q1 FY22 vs Q1 FY21

• Record EBITDA at ₹2,352 crore, up 142% YoY in Q1 FY22 on account of favorable macros, better efficiencies, improved mix and a strong market recovery
• EBITDA margins at a all time high of 37.5%, and highest in last thirteen years and continues to be one of the best in the industry

Copper

Copper Metal & VAP - Production and Sales in Kt

▪ Cathode Production was low due to maintenance shutdown in Smelter-3

▪ Metal and CC Rod sales were low due to lower production and softening of the domestic market in Q1FY22

Financial Performance – Copper Business

▪ Revenues were up by 134% YoY in Q1 FY22, on account of higher global prices of copper compared to the corresponding quarter of the last year

▪ EBITDA at ₹261 crore in Q1 FY22 compared to ₹66 crore in the corresponding quarter, up 295% YoY

Consolidated Financial Performance

Consolidated Financial Performance

PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore)

(₹ Crores)

Particulars	As	As	As	As	As
	on	on	on	on	on
	30	30	31	31	30
	Jun	Sep	Dec	Mar	Jun
	20	20	20	21	21
	-	-	-	-	-
	-	-	-	-	-
Debt Gross	84 181 ,	78 266 ,	71 996 ,	65 994 ,	67 836 ,
Cash Cash Equivalents &	21 879 ,	20 265 ,	18 194 ,	18 575 ,	15 923 ,
Debt Net	62 302 ,	58 001 ,	53 802 ,	419 47 ,	913 51 ,
Adjusted	16	16	17	18	21
TTM	276	491	409	293	997
EBITDA	,	,	,	,	,

Net Debt : EBITDA(x)

In Summary

Thank You

Annexures

Consolidated – Key Financials

(₹ Crore) Particulars	Q1 FY21	Q4 FY21	Q1 FY22	Change % YoY	QoQ Change %
from Operations Revenue	25 283 ,	40 507 ,	41 358 ,	64%	2 %
(EBITDA) Earning Before Depreciation & Amortisation Interest Tax , ,
Novelis*	1 919 ,	3 705 ,	4 090 ,	113%	10%
Aluminium	973	1 820 ,	2 352 ,	142%	29%
Copper	6 6	322	261		-19%
All Other Segments	1	3 1	(6)
Business Segment EBITDA	2 959 ,	860 5 ,	6 697 ,	126%	14%
Income/ (Expense) - (Net) Unallocable & Adjustments GAAP	(600)	(15)	9 3
EBITDA	2 359 ,	5 845 ,	6 790 ,	188%	16%
Finance Costs	992	903	820	17%	9 %
PBDT	1 367 ,	4 942 ,	5 970 ,	337%	21%
(including impairment) Depreciation & Amortisation	1 551 ,	1 722 ,	1 649 ,	-6%	4 %
Profit/ Share (Loss) Accounted (Net of Tax) in in Equity Investments	3	-	2
Profit before Exceptional and Items Tax	(181)	3 220 ,	4 323 ,	2488%	34%
Income/ Exceptional (Expenses) (Net)#	(419)	3 4	230
Profit Before (After Exceptional Item) Tax	(600)	3 254 ,	553 4 ,	859%	40%
Tax	(31)	1 309 ,	1 299 ,
Profit/ (Loss) from Continuing Operations	(569)	1 945 ,	3 254 ,	672%	67%
Profit/ (Loss) from Discontinued Operations	(140)	(17)	(467)
Profit/ (Loss) After Tax	(709)	1 928 ,	2 787 ,	493%	45%

*As per US GAAP ; # Exceptional Income / (Expenses) for Q1FY22, exclude ₹346 crore (net of litigation cost of ₹9 crore) which represents the principal portion on PIS and COFINS related tax credit income as it is included in the Novelis segment result.

Hindalco (India) Business – Key Financials

					(₹ Crore)
Particulars	Q1 FY21	Q4 FY21	Q1 FY22	YOY Change %	QoQ Change%
from Operations Revenue	464 7 ,	14 471 ,	13 349 ,	79%	-8%
EBITDA
Aluminium	973	1 820 ,	2 352 ,	142%	29%
Copper	6 6	322	261	295%	-19%
Other Segments	1	7	1	% 0	-86%
Business Segment EBITDA	1 040 ,	2 149 ,	2 614 ,	151%	22%
Income/ Unallocable (Expense) (Net)	9 8	(248)	(101)
EBITDA	138 1 ,	901 1 ,	2 513 ,	121%	32%
Finance Costs	457	359	373	18%	-4%
PBDT	681	1 542 ,	2 140 ,	214%	39%
Depreciation	514	526	525	-2%
Profit before Exceptional and Items Tax	167	1 016 ,	1 615 ,	867%	59%
Income/ (Expenses) (Net) Exceptional	(39)	2 3	-
Profit Before (After Item) Exceptional Tax	128	1 039 ,	1 615 ,	1162%	55%
Tax	4 4	386	578
Profit/ (Loss) After Tax	8 4	653	037 1 ,	1135%	59%

Production – Alumina

• Total Alumina production was up 15% YoY and 3% sequentially in Q1 FY22
• Production at Utkal Alumina refinery was 425 Kt in Q1 FY22 after the ramp up post maintenance shutdown taken in Q4 FY21

For Further Queries Please Contact :

Subir Sen, Investor Relations Telephone- +91 22 6662 6666 E mail: hilinvestors@adityabirla.com Website: www.hindalco.com

Registered Office Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East), Mumbai 400 093 Telephone- +91 22 6691 7000 Website: www.hindalco.com E mail: hindalco@adityabirla.com Corporate Identity No. L27020MH1958PLC011238

The Board of Directors Hindalco Industries Limited Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai-400093

• We have reviewed the unaudited financial results of Hindalco Industries Limited (the "Company") for the quarter ended June 30, 2021 which are included in the accompanying 'Statement of Standalone Unaudited Financial Results for the Quarter ended June 30, 2021' (the "Statement"). The Statement has been prepared by the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations, 2015"), which has been initialled by us for identification purposes.
• This Statement, which is the responsibility of the Company's Management and approved by the $2.$ Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• We conducted our review of the Statement in accordance with the Standard on Review Engagements $3.$ (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• Based on our review conducted as above, nothing has come to our attention that causes us to believe $\overline{4}$ that the Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Price Waterhouse & Co Chartered Accountant LLP Firm Registration Number: 304026E/E-300009

-wah George.

Sarah George Partner Membership Number: 045255

UDIN: 21045255AAAAKI3341 Mumbai Date: August 06, 2021

Price Waterhouse & Co Chartered Accountants LLP, 252, Veer Savarkar Marg, Shivaji Park, Dadar (West) Mumbai - 400 028

.......................................

$T: +91(22) 66691500, F: +91(22) 66547804 / 07$

Registered office and Head office: Plot No. Y-14, Block EP, Sector V, Salt Lake Electronic Complex, Bidhan Nagar, Kolkata 700 091

Price Waterhouse & Co. (a Partnership Firm) converted into Price Waterhouse & Co Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAC-4362) with effect from July 7, 2014. Post its conversion to Price Waterhouse & Co Chartered Accountants LLP, its ICAI registration number is
304026E/E-300009 (ICAI registration number before conversion was 304026

The Board of Directors Hindalco Industries Limited Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East) Mumbai-400093

• We have reviewed the consolidated unaudited financial results of Hindalco Industries Limited $1₂$ (the "Parent Company"), its subsidiaries (the Parent Company and its subsidiaries hereinafter referred to as the "Group"), joint ventures and associate companies for the quarter ended June 30, 2021 which are included in the accompanying 'Statement of Consolidated Unaudited Financial Results for the Quarter ended June 30, 2021' (the "Statement"). The Statement is being submitted by the Parent Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing") Regulations 2015"), which has been initialled by us for identification purposes.
• This Statement, which is the responsibility of the Parent Company's Management and has been $\overline{2}$ approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• We conducted our review of the Statement in accordance with the Standard on Review 3. Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

• The Statement includes the results of the entities listed in Annexure -1. $4.$
• Based on our review conducted and procedures performed as stated in paragraph 3 above and 5. based on the consideration of the review reports of the other auditors referred to in paragraph 6 below, nothing has come to our attention that causes us to believe that the accompanying Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations 2015, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Price Waterhouse & Co Chartered Accountants LLP, 252, Veer Savarkar Marg, Shivaji Park, Dadar (West) Mumbai - 400 028

. . . . . . . . . . . . . . . . . . . .

$T: +91(22) 66691500, F: +91(22) 66547804 / 07$

Registered office and Head office: Plot No. Y-14, Block EP, Sector V, Salt Lake Electronic Complex, Bidhan Nagar, Kolkata 700 091

Price Waterhouse & Co. (a Partnership Firm) converted into Price Waterhouse & Co Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAC-4362) with effect from July 7, 2014. Post its conversion to Price Waterhouse & Co Chartered Accountants LLP, its ICAI registration number is 304026E/E-300009 (ICAI registration number is

The Board of Directors Hindalco Industries Limited Page 2 of 2

1. We did not review the interim financial information of two subsidiaries and consolidated interim financial information of one subsidiary included in the consolidated unaudited financial results, whose interim financial information reflect total revenues of Rs. 28,713 crores, total net profit after tax of Rs. 1,891 crores and total comprehensive income of Rs. 2,265 crores for the quarter ended June 30, 2021, as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs. * and total comprehensive income of Rs. * for the quarter ended June 30, 2021, as considered in the consolidated unaudited financial results, in respect of three associates, whose interim financial results have not been reviewed by us. These interim financial information/financial results have been reviewed by other auditors in accordance with SRE/ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity and their reports, vide which they have issued an unmodified conclusion, have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and associates companies, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of the above matter.

* represent figures below the rounding convention used in this report

1. The consolidated unaudited financial results includes the interim financial information of ten subsidiaries which have not been reviewed by their auditors, whose interim financial information reflect total revenue of Rs. 86 crores, total net (loss) after tax of Rs. (19) crores and total comprehensive income of Rs. 55 crores for the quarter ended June 30, 2021, as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs. 2 crores and total comprehensive income of Rs. 2 crores for the quarter ended June 30, 2021, as considered in the consolidated unaudited financial results, in respect of two joint ventures and one associate company, based on their interim financial information which have not been reviewed by their auditors. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group. Our conclusion on the Statement is not modified in respect of the above matter.

For Price Waterhouse & Co. Chartered Accountant LLP Firm Registration Number: 304026E/E-300009 Chartered Accountants

arach Guerge. Sarah George

Partner Membership Number: 045255 UDIN: 21045255AAAAKH3202

Place: Mumbai Date: August 6, 2021

Annexure 1

Sr. No.	Name
	Subsidiaries
1	Utkal Alumina International Limited
$\overline{2}$	Minerals & Minerals Limited
3	AV Minerals (Netherlands) N.V.
4	Dahej Harbour & Infrastructure Limited
5	Hindalco Almex Aerospace imited
6	East Coast Bauxite Mining Company
7	Renuka Investments & Finance Limited
8	Renukeshwar Investments & Finance Limited
9	Lucknow Finance Company Limited
10	Suvas Holdings Limited
11	Hindalco Jan Seva Trust
12	Copper Jan Seva Trust
13	Utkal Alumina Jan Seva Trust
14	Utkal Alumina Social Welfare Foundation
15	Kosala Livelihood and Social Foundation
16	A V Metal Inc.
17	Hindalco do Brasil Industria e Comercio de Alumina Ltda
18	Novelis Inc.
19	Novelis do Brasil Ltda
20	Brecha Energetica Ltda
21	4260848 Canada Inc.
22	4260856 Canada Inc.
23	8018227 Canada Inc.
24	Novelis (China) Aluminum Products Co. Ltd.
25	Novelis (Shanghai) Aluminum Trading Company Novelis Lamines France S.A.S.
26
27	Novelis PAE S.A.S.
28	Novelis Aluminum Beteiligungs GmbH Novelis Deutschland GmbH
29
30	Novelis Sheet Ingot GmbH Novelis (India) Infotech Ltd.
31 32	Novelis Aluminum Holding Unlimited Company
33	Novelis Italia SpA
34	Novelis de Mexico S.A. de C.V.
35	Novelis Korea Limited
36	Novelis AG
37	Novelis Switzerland S.A.
38	Novelis MEA Ltd.
39	Novelis Europe Holdings Limited
40	Novelis UK Ltd.
41	Novelis Services Limited
42	Novelis Corporation
43	Novelis South America Holdings LLC

2

Sr. No.	Name
44	Novelis Holdings Inc.
45	Novelis Services (North America) Inc.
46	Novelis Global Employment Organization, Inc.
47	Novelis Services (Europe) Inc.
48	Saras Micro Devices, Inc.
49	Novelis Vietnam Company Limited
50	Aleris Asia Pacific International (Barbados) Ltd.
51	Aleris Aluminum (Zhenjiang) Co., Ltd.
52	Aleris (Shanghai) Trading Co., Ltd.
53	Aleris Asia Pacific Limited
54	Aleris Aluminum Japan, Ltd.
55	Aleris Aluminum Denmark ApS
56	Aleris Aluminum France S.a.r.l.
57	Aleris Casthouse Germany GmbH
58	Aleris Deutschland Holding GmbH
59	Aleris Rolled Products Germany GmbH
60	Aleris Aluminum Netherlands B.V.
61	Aleris Aluminum Poland sp. z.o.o.
62	Aleris Switzerland GmbH
63	Aleris Aluminum UK Limited
64	Aleris Holding Canada ULC
65	Aleris Corporation
66	Aleris International Inc.
67	Aleris Rolled Products, LLC
68	Aleris RM, Inc.
69	Aleris Rolled Products, Inc.
70	Nichols Aluminum LLC
71	Aleris Rolled Products Sales Corporation
72	IMCO Recycling of Ohio, LLC
73	Name Acquisition Co.
74	Nichols Aluminum-Alabama LLC
75	UWA Acquisition Co
Sr. No.	Name Joint Ventures
1	MNH Shakti Limited
2	Hydromine Global Minerals (GMBH) Limited
	Associates
1	Aditya Birla Science & Technology Company Private Limited
$\overline{2}$	Aditya Birla Renewables Subsidiary Limited
3	Aditya Birla Renewables Utkal Limited
4	Aditya Birla Renewables Solar Limited
5	Deutsche Aluminum Verpachung Recycling GMBH
6	France Aluminum Recyclage SPA

HINDALCO INDUSTRIES LIMITED
Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093
Website: www.hindalco.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958P

Statement of Consolidated Unaudited Financial Results for the Quarter ended June 30, 2021 (₹ in Crore, except otherwise stated)
	Quarter ended
Particulars	30/06/2021 (Unaudited)	31/03/2021 (Unaudited) (Refer Note 9)	30/06/2020 (Unaudited)	Year ended 31/03/2021 (Audited)
CONTINUING OPERATIONS:
INCOME
Revenue from Operations	41,358	40,507	25,283	131,985
Other Income	267	189	419	1,222
Total Income EXPENSES	41,625	40,696	25,702	133,207
Cost of Materials Consumed	26,049	25,101	13,714	77,630
Trade Purchases	257	41	189	1,098
Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(2, 519)	(803)	1,158	(2, 146)
Employee Benefits Expense	3,028	2,928	2,527	10,782
Power and Fuel	2,406	2,315	1,900	8,646
Finance Cost	820	903	992	3,738
Depreciation and Amortization Expense	1,645	1,721	1,544	6,628
Impairment Loss/ (Reversal) of Non-Current Assets (Net) Impairment Loss/ (Reversal) on Financial Assets (Net)	144	$\mathbf{1}$ (10)	(17)	138 (26)
Other Expenses	5,816	5,279	3,872	18,327
Total Expenses	37,650	37,476	25,886	124,815
Profit/ (Loss) before Share in Profit/ (Loss) in Equity Accounted Investments,
Exceptional Items and Tax	3,975	3,220	(184)	8,392
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax)
Profit/ (Loss) before Exceptional Items and Tax	3,977	3,220	(181)	8,397
Exceptional Income/ (Expenses) (Net) (Refer Note 5)	576	34	(419)	(492)
Profit/ (Loss) before Tax Tax Expense	4,553	3,254	(600)	7,905
Current Tax Expense	686	703	294	1,881
Deferred Tax Expense/ (Benefit)	613	606	(325)	842
Profit/ (Loss) for the Period from Continuing Operations	3,254	1,945	(569)	5,182
II. DISCONTINUED OPERATIONS: (Refer Note 4)
Profit/ (Loss) for the Period From Discontinued Operations	(469)	(15)	(188)	(2,066)
Tax Expense/ (Benefit) of Discontinued Operations	(2)		(48)	(367)
Profit/ (Loss) for the Period from Discontinued Operations	(467)	(17)	(140)	(1,699)
Profit/ (Loss) for the Period Other Comprehensive Income/ (Loss)	2,787	1,928	(709)	3,483
Items that will not be reclassified to Statement of Profit and Loss
Remeasurement of Defined Benefit Obligation	(334)	1,719	(369)	1,117
Remeasurement of Defined Benefit Obligation of Discontinued Operations		(1)	21	60
Change in Fair Value of Equity Instruments Designated as FVTOCI	349	1,934	1,027	4,358
Share in Equity Accounted Investments Income Tax effect	76	(458)	91	(327)
Items that will be reclassified to Statement of Profit and Loss
Change in Fair Value of Debt Instruments Designated as FVTOCI		(12)		(9)
Effective Portion of Cash Flow Hedges	(876)	(1, 380)	(345)	(1,769)
Cost of Hedging Reserve	(26)	38	(174)	(168)
Foreign Currency Translation Reserve Foreign Currency Translation Reserve of Discontinued Operations	682	(849)	427 64	959
Income Tax effect	288	405	147	563
Other Comprehensive Income/ (Loss) for the Period	159	1,396	891	4,784
Total Comprehensive Income/ (Loss) for the Period	2,946	3,324	182	8,267
Profit/ (Loss) attributable to:
Owners of the Company	2,787	1,928	(709)	3,483
Non-Controlling Interests Other Comprehensive Income/ (Loss) attributable to:
Owners of the Company	159	1,396	891	4,784
Non-Controlling Interests
Total Comprehensive Income/ (Loss) attributable to:
Owners of the Company	2,946	3,324	182	8,267
Non-Controlling Interests Total Comprehensive Income/ (Loss) attributable to Owners of the Company from:
Continuing Operations	3,413	3,341	242	9,915
Discontinued Operations	(467)	(17)	(60)	(1,648)
Paid-up Equity Share Capital (Net of Treasury Shares) (Face value ₹1/- per share)	223	222	222	222
Other Equity				66,311
Earnings Per Share: Basic - Continuing Operations (₹)	14.63	8.75	(2.56)	23.30
Diluted - Continuing Operations (₹)	14.61	8.74	(2.56)	23.29
Basic - Discontinued Operations (₹)	(2.10)	(0.08)	(0.63)	(7.64)
Diluted - Discontinued Operations (₹)	(2.10)	(0.08)	(0.63)	(7.64)
Basic - Continuing and Discontinued Operations (₹)	12.53	8.67	(3.19)	15.66
Diluted - Continuing and Discontinued Operations (₹)	12.51	8.66	(3.19)	15.65

$M.$

		Quarter ended		(₹ in Crore Year ended
Particulars	30/06/2021	31/03/2021	30/06/2020	31/03/2021
	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1. Segment Revenue
(a) Novelis	28,428	26,578	18,407	91,130
(b) Aluminium	6,267	5,969	4,436	20,495
(c) Copper	7,094	8,508	3,031	22,446
(d) All Other Segments	83	69	49	230
	41,872	41,124	25,923	134,301
Adjustment on account of different accounting policies for Novelis Segment	(492)	(605)	(637)	(2, 287)
Intersegment Revenue	(22)	(12)	(3)	(29)
Total Revenue from Operations	41,358	40,507	25,283	131,985
2. Segment Results
(a) Novelis *	4,090	3,705	1,919	12,727
(b) Aluminium (Refer Note 6)	2,352	1,820	973	5,441
(c) Copper (Refer Note 6)	261	322	66 1	869
(d) All Other Segments Total Segment Results	(6) 6,697	13 5,860	2,959	26 19,063
Adjustment on account of different accounting policies for Novelis Segment	37	26	71	554
Unallocable Income/ (Expense) (Net) (Refer Note 6)	56	(41)	(671	(721)
	6,790	5,845	2,359	18,896
Finance Cost	(820)	(903)	(992)	(3, 738)
Depreciation and Amortisation Expense	(1, 645)	(1, 721)	(1, 544)	(6, 628)
Impairment (Loss)/ Reversal of Non Financial Assets (Net)	(4)	(1)	(7)	(138)
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax)	$\overline{2}$		3	5
Exceptional Income / (Expenses) (Net) (Refer Note 5) * Profit/ (Loss) before Tax from Continuing Operations	230 4,553	34 3,254	(419) (600)	(492) 7,905
Profit/ (Loss) before Tax from Discontinued Operations (Refer Note 4)	(469)	(15)	(188)	(2,066)
Profit/ (Loss) before Tax from Continuing and Discontinued Operations	4,084	3,239	(788)	5,839
3. Segment Assets
(a) Novelis	100,938	94,141	91,221	94,141
(b) Aluminium	49,202	48,430	49,317	48,430
(c) Copper	17,299	14,982	11,097	14,982
(d) All Other Segments	595	486	392	486
	168,034	158,039	152,027	158,039
Adjustment on account of different accounting policies for Novelis Segment	12,890	12,565	15,993	12,565
Assets of Discontinued Operations Corporate/ Unallocable Assets	100	107	7,871	107
Total Assets	17,467 198,491	18,988 189,699	13,482 189,373	18,988 189,699
4. Segment Liabilities
(a) Novelis (b) Aluminium	41,416 7,418	36,733 6,565	30,419 4,987	36,733 6,565
(c) Copper	6,468	8,091	3,654	8,091
(d) All Other Segments	205	156	143	156
	55,507	51,545	39,203	51,545
Adjustment on account of different accounting policies for Novelis Segment	1,755	1,516	1,808	1,516
Liabilities of Discontinued Operations	106	119	2,247	119
Corporate/ Unallocable Liabilities (including Borrowings) Total Liabilities	71,661 129,029	69,976 123,156	87,551 130,809	69,976 123,156

* Exceptional Income / (Expenses) for Q1FY22, exclude ₹ 346 crore (net of litigation cost of ₹ 9 crore) which represents the principal portion on PIS and COFINS related
tax credit income as it is included in the results o

$\mu$ y.

Notes:

• $\mathbf{1}$ . These consolidated financial results of the Group have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in their meeting held on August 6, 2021.
• 1. During the quarter, the Company has allotted 259,797 (includes 43,435 shares allotted through Hindalco Employee Welfare Trust) equity shares of ₹1/- each to the option grantees pursuant to the exercise of options under the Employees Stock Option Schemes.
• 1. (a) In May 2021, the Zhenjiang Term Loans of ₹959 crore (\$129 million) which was due for repayment in May 2024 were prepaid in full. As a result of this transaction, a gain on extinguishment of ₹15 crore (\$2 million) has been recorded in "Other Income".

(b) In April 2021, the Bank of Tokyo Mitsubishi Term Loans of ₹460 crore (₹293 crore was due on March 31, 2022 and ₹167 crore was due on June 30, 2022) were prepaid in full. This prepayment of Term Loans resulted into a loss on extinguishment of debt of ₹2 crore included in "Finance cost".

1. (a) On September 30, 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 ₹ 2,675 crore (€ 310 million). At the transaction date, the Group has received ₹ 1,812 crore (€ 210 million) in cash and an amount of ₹ 863 crore (€ 100 million) was recorded as contingent consideration subject to the results of a binding arbitration proceeding and measured at fair value at each reporting date.

As of June 30, 2021, the Group marked above contingent consideration having a carrying value of ₹847 crore (€96 million) to an estimated fair value of ₹397 crore (€45 million), resulting in a loss of ₹450 crore (€51 million). In addition, the Group incurred ₹ 19 crore (\$ 2 million) towards additional costs primarily relating to legal expenses. The total loss of ₹ 469 crore is recorded as 'Profit/ Loss for the Period from Discontinued Operations' in the consolidated financial results for the quarter.

(b) The results for the Discontinued Operations are as below:

	₹ Crore
Particulars	Q1 FY22
Expenses
Loss before Income Tax	469
Income Tax Expense/ (Benefit)
Loss after Tax from Discontinued Operations	467

1. Exceptional Income / (Expenses) during the quarter ended June 30, 2021, consists of the following:

	₹ Crore
Particulars	Q1 FY22
Recognition of benefit received as a result of multiple favourable rulings from the Brazilian Supreme Court that recognized the right to exclude certain taxes related to Program for Social Integration (PIS) And Contribution for the Financing of Social Security (COFINS) on gross methodology for the years 2009 to 2017, net of litigation cost. (Principal ₹ 355 crore (\$48 million); Interest ₹212 crore (\$29 million); Litigation cost ₹(9) crore (\$1 million)).	558
Reversal of Employee severance cost pursuant to restructuring program in a manufacturing unit in Novelis, Germany.	18
Total	576

During the quarter ended June 30, 2021, in line with the changes in the internal structure for reporting financial information to the entity's chief operating decision maker (CODM), the Group has changed its segment disclosure related to segment results for Aluminium and Copper segments in the consolidated financial results as per Ind AS 108 "Operating Segments". Corporate expenses and certain other items of income/expenses like (gain)/loss on disposals of property, plant and equipment (PPE), restructuring expenses, etc., which were previously included as a part of segment results of Aluminium and Copper segments are now excluded from segment results of these segments as these are not considered to be directly related to operations of Aluminium and Copper segments. There is no change in the measure of performance with respect to 'Novelis Segment' and 'All Other Segments'. The corresponding segment information of previous periods has been restated accordingly.

Due to above, segment results for "Aluminium Segment" and "Copper Segment" have increased with corresponding change in "Unailocable income/ (Expense) (Net)" as under:

Particulars				Crore
	Q1 FY22	Q4 FY21	Q1 FY21	FY21
Aluminium Segment	142	210	117	586
Copper Segment	39	53	29
Unallocable income/ (Expense) (Net)				153
	(181)	(263)	(146)	(739)

1. Consolidated results of the Group and results of Novells segment for the quarter ended June 30, 2021 is not comparable with the corresponding previous period ended June 30, 2020 as the same include results of Aleris for the period April 14, 2020 through

2. On July 26, 2021, Novells has offered 3.25% Senior Notes (maturing in 2026) of ₹5,577 crore (\$750 million) and 3.875% Senior Notes (maturing in 2031) of ₹ 5,577 crore (\$ 750 million) for subscription. This offer is expected to close on August 11, 2021. Novelis intends to use the net proceeds from the offering, together with cash on hand, to (i) fund the redemption of all of its outstanding 5.875% Senior Notes (maturing in 2026) (the "Existing 2026 Notes"), plus the redemption premium and accrued and unpaid interest and (ii) pay certain fees and expenses in connection with the above transactions.

In connection with the offering, Novelis has delivered a notice on July 26, 2021 for conditional redemption of all of the Existing 2026 Notes pursuant to the indenture dated September 14, 2016. This redemption is subject to and conditioned upon the completion of the offering on terms and conditions satisfactory to Novelis yielding net proceeds, together with up to ₹ 1,115 crore (\$ 150 million) of cash on hand. The Group is still evaluating the financial and accounting impacts of this transaction.

• 1. The figures of the quarter ended March 31, 2021 are balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the December 31, 2020.
• 1. Figures of previous periods have been regrouped/reclassified wherever necessary to conform to current period classification.

By and on behalf of the Board

Satish Pal Managing Director

Place: Mumbal Dated: August 6, 2021

HINDALCO INDUSTRIES LIMITED
Regd. Office: Ahura Centre, 1st Floor, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai 400093
Website: www.hindalco.com, Email: hindalco@adityabirla.com, Corporate Identity No. L27020MH1958P

Statement of Standalone Unaudited Financial Results for the Quarter ended June 30, 2021			(₹ in Crore, except otherwise stated)
			Year ended
Particulars	30/06/2021 (Unaudited)	Quarter ended 31/03/2021 (Unaudited) (Refer Note 5)	30/06/2020 (Unaudited)	31/03/2021 (Audited)
Income
Revenue from Operations	13,298	14,412	7,420	42,701
Other Income	101	53	246	650
Total Income	13,399	14,465	7,666	43,351
Expenses
Cost of Materials Consumed	7,637	9,590	4,541	27,324
Trade Purchases	257	41	189	1,098
Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(245)	(77)	(356)	(1, 821)
Employee Benefits Expense	488	502	461	1,844
Power and Fuel	1,520	1,484	1,263	5,668
Finance Cost	347	331	425	1,469
Depreciation and Amortization Expense	442	442	425	1,708
Impairment Loss on Non-Current Assets			7	140
Impairment Loss/ (Reversal) on Financial Assets (Net)		(1)	(6)	(7)
Other Expenses	1,543	1,386	748	4,361
Total Expenses	11,991	13,698	7,697	41,784
Profit/ (Loss) before Exceptional Items and Tax	1,408	767	(31)	1,567
Exceptional Income/ (Expenses) (Net)		23	(35)
Profit/(Loss) before Tax	1,408	790	(66)	1,574
Tax Expenses:
Current Tax Expense	251	137		283
Deferred Tax Expense/ (Benefit)	247	158	(26)	298
Profit/ (Loss) for the Period	910	495	(40)	993
Other Comprehensive Income/ (Loss)
Items that will not be reclassified to Statement of Profit and Loss
Remeasurement of Defined Benefit Obligation	5	22	(20)	57
Change in Fair Value of Equity Instruments Designated as FVTOCI	276	1,982	1,015	4,351
Income Tax effect	(26)	(8)	7	(20)
Items that will be reclassified to Statement of Profit and Loss
Change in Fair Value of Debt Instruments Designated as FVTOCI		(13)		(9)
Effective Portion of Cash Flow Hedges	(830)	(588)	146	(757)
Cost of Hedging Reserve	(26)	38	(174)	(168)
Income Tax effect	299	197		326
Other Comprehensive Income/ (Loss) for the period	(302)	1,630	985	3,780
Total Comprehensive Income/ (Loss) for the period	608	2.125	945	4,773
Paid-up Equity Share Capital (Net of Treasury Shares) (Face value of ₹1/- per share) Other Equity	223	222	222	222 49,842
Earnings Per Share:
Basic (₹)	4.09	2.22	(0.18)	4.46
Diluted $($	4.09	2.22	(0.18)	4.46

Notes:

• 1. The standalone financial results of the Company have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in their meeting held on August 6, 2021.
• 1. During the quarter, the Company has allotted 259,797 (includes 43,435 shares allotted through Hindalco Employee Welfare Trust) equity shares of ₹ 1/- each to the option grantees pursuant to the exercise of options under the Employees Stock Option Schemes.
• 1. In April 2021, the Bank of Tokyo Mitsubishi Term Loans of ₹460 crore (₹293 crore was due on March 31, 2022 and ₹167 crore was due on June 30, 2022) were prepaid in full. This prepayment of Term Loans resulted into a loss on extinguishment of debt of ₹ 2 crore included in "Finance cost".
• 1. Since the segment information as per ind AS 108-Operating Segments is provided on the basis of consolidated financial results, the same is not provided separately for the standalone financial results.
• 1. The figures of the quarter ended March 31, 2021 are balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the December 31, 2020.
• 1. Figures of previous periods have been regrouped/ reclassified wherever necessary to conform to current period classification.

By and on behalf of the Board

Place: Mumbal Dated: August 6, 2021

Satish Pal Managing Director

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