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1QFY2014 Result Update | Base Metals

August 14, 2013

Hindalco
Performance highlights

NEUTRAL
CMP Target Price
% chg (yoy) (3.3) 3.3 53bp (8.0) 4QFY13 6,916 643 9.3 482 % chg (qoq) (16.6) (25.6) (100)bp (43.8)

`91 -

Standalone (` cr) Net sales EBITDA % margin Adj. PAT

1QFY14 5,767 478 8.3 271

1QFY13 5,964 463 7.8 295

Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Base Metals 17,509 27,012 1.4 137/83 1,038,339 1 19,230 5,699 HALC.BO HNDL@IN

Source: Company, Angel Research

Disappointing 1QFY2014 standalone results: Hindalcos standalone 1QFY2014

adjusted net profit was below our expectation. Its net sales decreased 3.3% yoy to `5,767cr (below our estimate of `6,810cr). Other income increased by 31.2% yoy to `225cr, whereas interest costs increased by 82.5% yoy to `149cr; hence, its adjusted net profit decreased by 8.0% yoy to `271cr (below our estimate of `328cr).
Novelis (US $mn) Net Sales EBITDA % margin Adj. PAT
Source: Company, Angel Research

1QFY14 2,408 173 7.2 14

1QFY13 2,550 234 9.2 91

% chg (yoy) (5.6) (26.1) (199)bp (85)

4QFY13 2,500 235 9.4 59

% chg (qoq) (3.7) (26.4) (222)bp (76)

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 32.1 15.5 35.4 17.0

Weak performance at Novelis: Novelis top-line declined by 5.6% yoy to US$2,408mn on account of decrease in sales volumes, lower aluminium prices and lower conversion premiums. The aluminium shipments in 1QFY2014 declined 2.0% yoy to 708kt. The EBITDA also declined 26.1% yoy at US$173mn and PAT declined by 84.6% yoy to US$14mn. Outlook and valuation: Although Hindalco has expanded its aluminium capacity recently, low aluminium prices, sticky costs and delay in commencement of mining from captive blocks are expected to mute its profitability growth. In the near-term, there is lack of clarity over production from the Mahan coal block for its Mahan smelter. Without captive coal block, the Mahan smelter (commissioned production in 1QFY2014) is expected to face cost pressures, resulting in lower return ratios over the next two years. We maintain our Neutral recommendation on the stock.

Abs. (%) Sensex Hindalco

3m (2.3)

1yr 9.1

3yr 5.9 (45.0)

(12.5) (24.6)

Key financials (Consolidated)


Y/E March (` cr) Net sales % chg Net profit % chg EPS (`) EBITDA margin (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
FY12 80,821 11.9 3,397 38.3 17.7 10.1 5.1 0.6 11.2 6.9 0.6 5.5 FY13E 79,042 (2.2) 3,033 (10.7) 15.8 8.9 5.7 0.5 9.3 5.4 0.6 6.8 FY14E 95,465 20.8 2,657 (12.4) 13.9 8.4 6.6 0.5 7.5 5.5 0.6 6.7 FY15E 99,226 3.9 3,029 14.0 15.8 8.8 5.8 0.4 8.0 5.7 0.5 5.7

Bhavesh Chauhan
Tel: 022- 3935 7800 Ext: 6821 bhaveshu.chauhan@angelbroking.com

Vinay Rachh
Tel: 022- 39357600 Ext: 6841 vinay.rachh@angelbroking.com

Source: Company, Angel Research: Note CMP as of 13th August 2013

Please refer to important disclosures at the end of this report

Hindalco | 1QFY2014 Result Update

Exhibit 1: 1QFY2014 performance (Standalone)


(` cr) Net sales Raw material % of net sales Power and fuel % of net sales Staff cost % of net sales Other expenses % of net sales Total expenditure % of net sales Operating Income EBIDTA % of net sales Interest Depreciation Other income Exceptional Items Profit before tax % of net sales Provision for tax % of PBT Profit after tax Adjusted PAT
Source: Company, Angel Research

1QFY14 5,767 3,671 63.7 806 14.0 302 5.2 580 10.1 5,359 92.9 71 478 8.3 149 183 225 203 575 10.0 101 17.5 474 271

1QFY13 5,964 3,895 65.3 757 12.7 290 4.9 622 10.4 5,565 93.3 64 463 7.8 81 170 171 130 513 8.6 88 17.1 425 295

yoy % (3.3) (5.8) 6.5 4.2 (6.8) (3.7) 11.6 3.3 82.5 7.4 31.2 56.2 12.1 14.4 11.6 (8.0)

4QFY13 6,916 4,714 68.2 754 10.9 289 4.2 592 8.6 6,351 91.8 78 643 9.3 158 173 231 544 7.9 62 11.4 482 482

qoq % (16.6) (22.1) 6.9 4.5 (2.1) (15.6) (8.9) (25.6) (5.7) 6.1 (2.7) 5.6 61.8 (1.6) (43.8)

FY2013 25,784 17,265 67.0 3,073 11.9 1,201 4.7 2,315 9.0 23,853 92.5 273 2,204 8.5 436 704 839 144 2,047 7.9 347 17.0 1,699 1,699

FY2012 26,353 17,642 66.9 2,871 10.9 1,113 4.2 1,866 7.1 23,492 89.1 244 3,105 11.8 294 690 616 143 2,737 10.4 500 18.3 2,237 2,237

yoy % (2.2) (2.1) 7.0 7.9 24.0 1.5 11.9 (29.0) 48.5 2.1 36.3 (25.2) (30.5) (24.0) (24.0)

Exhibit 2: Standalone 1QFY2014 Actual vs Angel estimates


(` cr) Net sales EBITDA EBITDA margin (%) Adj. net income
Source: Company, Angel Research

Actual 5,767 478 8.3 271

Estimate 6,810 565 8.3 328

Variation (%) (15.3) (15.3) 0bp (17.3)

August 14, 2013

Hindalco | 1QFY2014 Result Update

Hindalco (Standalone) Key result highlights


Hindalcos net sales decreased 3.3% yoy to `5,767cr (below our estimate of `6,810cr) mainly on account of lower realizations. In the aluminium segment, both alumina and aluminium production increased by 3.9% and 5.3% yoy each to 348kt and 139kt respectively. The aluminium segments net sales increased by 7.2% yoy to `2,211cr due to higher volumes. In the copper segment, copper cathode production decreased by 1.4% yoy to 68kt and this coupled with lower metal prices led to the copper segments net sales decreasing by 8.5% yoy to `3,636cr.

Exhibit 3: Aluminium Quarterly production trend


(tonnes) Alumina Aluminium metal 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 343,086 345,000 335,000 328,000 326,000 281,000 348,000 146,374 144,000 132,000 128,000 139,000 142,000 139,000

Source: Company, Angel Research

On the operating front, aluminium segments EBIT decreased by 7.8% yoy to `249cr due to increase in input costs. Copper segments EBIT however, increased by 7.2% yoy to `81cr.

Exhibit 4: Segmental performance


(` cr) Aluminium Copper Gross revenue Less: Inter-seg. revenue Net sales Aluminium Copper EBIT EBIT margin (%) Aluminium Copper 13.9 4.9 19.4 5.7 13.1 1.9 8.1 5.1 9.3 4.8 11.8 5.6 11.3 2.2 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2,236 4,418 6,654 (7) 6,647 310 216 526 2,499 5,154 7,653 (6) 7,647 484 293 777 2,063 3,972 6,035 (7) 6,028 270 76 346 2,105 4,066 6,171 (7) 6,164 170 209 378 2,215 4,661 6,876 (5) 6,872 206 225 432 2,396 4,607 7,003 (9) 6,994 284 259 542 2,211 3,636 5,847 (9) 5,838 249 81 330

Source: Company, Angel Research

Overall, Hindalcos raw material costs and other expenses decreased by 5.8% and 6.8% yoy, respectively. Hence, its EBITDA increased 3.3% yoy to `478cr. Other income increased by 31.2% yoy to `225cr whereas interest costs increased by 82.5% yoy to `149cr. There was an exceptional item in the other income and adjusting for that the companys net profit declined by 8.0% yoy to `271cr (below our estimate of `328cr).

August 14, 2013

Hindalco | 1QFY2014 Result Update

Mahan smelter trial runs completed; Utkal goes onstream


During the quarter, the company started trial-run production from its Mahan smelter while the Utkal refinery commenced production. The Aditya smelter is in an advanced stage of completion (the company has already spent over `10,000cr).

Aditya refinery and Jharkhand project could be delayed indefinitely


The company stated that it is re-evaluating its strategy for Aditya refinery and Jharkhand aluminium projects considering the delays in obtaining regulatory approvals and uncertain economic environment. We believe the projects are likely to be delayed indefinitely.

Exhibit 5: 1QFY2014 performance (Novelis)


(US $mn) Net revenue Cost of goods sold (% of Net Sales) Gross profit (% of Net Sales) Selling, General (% of Net Sales) Research (% of Net Sales) EBITDA EBITDA margin (%) Restructuring charges Depreciation EBIT (% of Net Sales) Other Income/(Expense) Net Interest expense Unrealized Gain Exceptional items Profit before tax (% of Net Sales) Taxes (% of PBT) 1QFY14 2,408 2,105 87.4 303 12.6 120 5.0 10 0.4 173 7.2 9 77 87 3.6 6 76 0 0 17 0.7 3 17.6 1QFY13 2,550 2,202 86.4 348 13.6 102 4.0 12 0.5 234 9.2 5 73 156 6.1 25 74 5 0 112 4.4 21 18.8 (85.7) (84.8) 2.7 80.0 5.5 (44.2) (26.1) (16.7) 17.6 (12.9) % yoy (5.6) (4.4) 4QFY13 2,500 2,162 86.5 338 13.5 93 3.7 10 0.4 235 9.4 19 74 142 5.7 14 75 (1) 0 73 2.9 14 19.2 83 39 112.8 (76.7) (57.1) 1.3 34 298 0 (4) 286 41 305 0 (111) 129 121.7 (17.1) (2.3) (52.6) 4.1 (38.7) 45 292 554 60 329 504 (25.0) (11.2) 9.9 (26.4) 891 893 (0.2) 0.0 46 44 4.5 29.0 398 383 3.9 (10.4) 1,335 1,320 1.1 % qoq (3.7) (2.6) FY2013 9,812 8,477 FY2012 11,063 9,743 % yoy (11.3) (13.0)

PAT
Source: Company, Angel Research

14

91

(84.6)

59

(76.3)

206

174

18.4

Novelis- Key result highlights:


For 1QFY2014 Novelis posted a decline in net sales by 5.6% yoy to US$2,408mn on account of decrease in sales volumes coupled with lower aluminium prices and lower conversion premiums. The aluminium shipments in 1QFY2014 declined 2.0% yoy to 708kt. The EBITDA also declined 26.1% yoy at US$173mn and therefore the company reported a PAT decline of 84.6% yoy to US$14mn.

August 14, 2013

Hindalco | 1QFY2014 Result Update

Exhibit 6: Novelis EBITDA margin stood at 7.2%


300 250 7.9 9.0 9.2 7.5 5.4 10.2 12 9.4 7.2 10 8 6 4 2 0

(US $ mn)

200 150 100 50 0

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

Adj. EBITDA (LHS)


Source: Company, Angel Research

Adj. EBITDA margin (RHS)

Exhibit 7: Novelis Adjusted Net Profit stood at $14mn


150 100 50 120 91 49 59 3 14 2 0 6 4

(US $ mn)

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(50) (100) (150)

1QFY14

(2) (4) (6)

Net profit (LHS)

Net profit margin (RHS)

Source: Company, Angel Research

August 14, 2013

(%)

(12)

(107)

1QFY14

(%)

Hindalco | 1QFY2014 Result Update

Investment rationale
Rising capacity without captive coal blocks to hit profitability
Hindalco has expanded its smelting capacity by 359kt via Mahan greenfield project. However, there is lack of clarity on production from the captive Mahan coal block on account of regulatory delays currently. Consequently, we expect the project to make losses which are expected to hit Hindalcos net profit over the coming two years.

Hindalco no longer a 100% proxy for aluminium prices


Hindalcos stock had a strong correlation with INR denominated LME aluminium prices over the past 22 years. However, over the past one year, this correlation has dropped significantly mainly on account of project delays. Further, with massive aluminium capacity expansion ahead, we believe the stocks performance will be determined by timely commencement of these projects, timely development of captive mines and movement in spot aluminium prices. Hence, Hindalco will no longer be a 100% proxy on aluminium prices over the coming two to three years in our view.

Outlook and valuation


Although Hindalco has expanded its aluminium capacity recently, low aluminium prices, sticky costs and delay in commencement of mining from captive blocks are expected to mute its profitability growth. In the near-term, there is lack of clarity over production from the Mahan coal block for its Mahan smelter. Without captive coal block, the Mahan smelter (commissioned production in 1QFY2014) is expected to face cost pressures, resulting in lower return ratios over the next two years. We maintain our Neutral recommendation on the stock.

Exhibit 8: SOTP valuation of Hindalco


(FY2015) Hindalco (Standalone) CWIP Novelis Total EV Less: Net debt (FY14E) Value of investments @25% discount Value per share
Source: Angel Research, Note: * stands for Book value

Multiple 4.0 0.7 4.5

EV (` cr) 12,159 7,769 25,555 45,483 32,395 4,270 91

3,040 11,098* 5,679

Exhibit 9: EPS - Angel forecast vs consensus


Year (`) FY2014E FY2015E
Source: Bloomberg, Angel Research

Angel forecast 13.9 15.8

Bloomberg consensus

Variation (%)

13.1 14.3

5.9 10.6

August 14, 2013

Hindalco | 1QFY2014 Result Update

Exhibit 10: Recommendation summary


Companies CMP Target price (`) (`) Reco. Neutral Mcap Upside (` cr) P/E (x) FY15E P/BV (x) FY14E FY15E EV/EBITDA (x) FY14E FY15E RoE (%) FY14E FY15E RoCE (%) FY14E FY15E (%) FY14E

Hindalco
Nalco

91 27
79

92

17,509 7,151
26,969

16

6.6 10.6
4.7

5.8 10.3
4.1

0.5 0.6
0.5 1.2

0.4 0.6
0.4 1.0

6.7 2.6
2.0 2.8

5.7 2.7
1.6 1.8

7.5 5.4
10.5 18.5

8.0 5.5
10.9 17.9

5.5 3.4
8.1 15.2

5.7 3.5
8.2 15.0

Neutral
Buy

Sterlite

Hind. Zinc 104

120

Buy

43,901

15

6.8

6.1

Source: Company, Angel Research

Company description
Incorporated in 1958, Hindalco is one of the world's largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia. It is also into copper smelting and has one of the worlds largest custom copper smelter at one location with a capacity of 0.5mn tonne (non-integrated). Its aluminium operations in India have a capacity of 0.5mn tonne with captive bauxite mines (reserves - 443mn tonne). During February 2007, Hindalco acquired Novelis for US$6bn, making the combined entity the world's largest rolledaluminium producer. Novelis has a market share of ~17% in the global flat-rolled aluminium product market.

August 14, 2013

Hindalco | 1QFY2014 Result Update

Profit & Loss Statement (Consolidated)


Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure EBITDA % chg (% of Net Sales) Depreciation & Amortization EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Extraordinary Inc/(Expense) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Extraordinary Expense/(Inc.) PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
previous year numbers

FY2010 60,722 160 60,882 (7.5) 50,976 9,746 227.3 16.1 2,784 6,962 11.5 1,104 323 5.2 6,181 (1,121.7) 6,181 1,829 29.6 4,352 (3) (424) 3,925 3,910 826.2 6.4 22.1 20.4 723.0

FY2011 FY2012 FY2013 FY2014E FY2015E 72,202 80,821 79,042 18.6 7,929 (18.6) 11.0 2,759 5,169 (25.8) 7.2 1,839 513 13.4 3,843 (37.8) 3,843 964 25.1 2,879 (57) (366) 2,456 2,456 (37.2) 3.4 12.8 12.8 (37.2) 11.9 8,189 3.3 10.1 2,870 5,320 2.9 6.6 1,758 783 18.0 4,345 13.1 4,345 786 18.1 3,559 50 (211) 3,397 3,397 38.3 4.2 17.7 17.7 38.3 273 (1.9) 7,015 (14.3) 8.9 2,281 4,734 (11.0) 6.0 2,045 1,023 27.6 3,712 (14.6) 122 3,834 796 20.8 3,038 (5) 3,033 3,033 (10.7) 3.8 15.8 15.8 (10.7) 72,202 80,821 79,314 64,274 72,632 72,027 95,465 278 95,743 20.7 87,513 7,952 13.4 8.4 2,773 5,179 9.4 5.4 2,529 1,070 28.8 3,720 0.2 3,720 973 26.2 2,747 (90) 2,657 2,657 (12.4) 2.8 13.9 13.9 (12.4) 99,226 284 99,510 3.9 90,507 8,719 9.6 8.8 2,989 5,730 10.6 5.8 2,648 1,148 27.1 4,231 13.7 4,231 1,101 26.0 3,130 (100) 3,029 3,029 14.0 3.0 15.8 15.8 14.0

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

August 14, 2013

Hindalco | 1QFY2014 Result Update

Balance Sheet (Consolidated)


Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves & Surplus Shareholders Funds Share Warrants Minority Interest Total Loans Deferred Tax Liability Other Long term liabilities Long Term provisions Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long Term loans and adv. Other Non-current assets Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets
previous year numbers

FY2010 191 21,353 21,545 1,737 23,999 3,938

FY2011 191 28,832 29,023 2,217 29,366 3,760 603 4,241

FY2012 FY2013E 191 31,179 31,370 541.3 1,709 40,859 3,605 1,460 5,289 84,833 39,888 15,654 24,234 22,798 11,066 10,551 3,754 841 28,158 3,296 2,158 22,703 16,570 11,588 84,833 191 33,821 34,012 541.3 1,714 44,359 3,605 1,460 5,289 90,980 48,388 17,935 30,453 22,098 11,066 10,551 3,754 841 27,990 3,722 2,103 22,164 15,774 12,216 90,980

FY2014E 191 36,208 36,400 541.3 1,804 47,859 3,605 1,460 5,289 96,958 61,888 20,708 41,180 16,598 11,066 10,551 3,754 841 31,031 2,240 2,542 26,249 18,064 12,967 96,958

FY2015E 191 38,969 39,161 541.3 1,905 51,359 3,605 1,460 5,289 103,319 69,388 23,696 45,692 11,098 11,066 10,551 3,754 841 38,824 8,954 2,642 27,228 18,507 20,317 103,319

51,219 41,189 16,622 24,567 5,801 4,433 11,246

69,210 37,031 13,567 23,464 9,252 8,941 10,855 4,597 865

23,188 2,195 3,117 17,876 18,017 5,172 51,219

26,896 2,540 1,722 22,634 15,660 11,236 69,210

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

August 14, 2013

Hindalco | 1QFY2014 Result Update

Cash flow statement (Consolidated)


Y/E March (` cr) Profit before tax Depreciation Change in working capital Others Direct taxes paid Cash flow from operations (Inc.)/ Dec. in fixed assets (Inc.)/ Dec. in investments (Inc.)/ Dec. in loans & adv. Others Cash flow from investing Issue of equity Inc./(Dec.) in loans Dividend paid Others Cash flow from financing Inc./(Dec.) in cash Opening cash bal. Closing cash bal.
previous year numbers

FY2010 FY2011 6,181 2,784 (598) (2,799) 635 4,932 (4,171) (1,614) (348) (5,437) 2,754 (321) 327 1,677 428 (76) 2,263 2,187 3,843 2,759 (708) 1,645 1,313 6,226 506 (185) 10 3,738 384 2,539 825 (18) 2,164 2,166

FY2012 FY2013E 4,345 2,870 (932) 2,417 1,090 7,609 508 (524) 3.5 9,091 411 2,446 6,237 626 2,166 3,296 3,712 2,281 (202) 796 4,995 (7,800) (7,800) 3,500 269 3,231 426 3,296 3,722

FY2014E 3,720 2,773 (2,233) 973 3,287 (8,000) (8,000) 3,500 269 3,231 (1,482) 3,722 2,240

FY2015E 4,231 2,989 (636) 1,101 5,482 (2,000) (2,000) 3,500 269 3,231 6,714 2,240 8,954

(7,760) (14,253)

(7,909) (12,512)

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

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Hindalco | 1QFY2014 Result Update

Key ratios
Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book value DuPont analysis EBIT margin Tax retention ratio (%) Asset turnover (x) RoIC (Post-tax) Cost of debt (post tax) Leverage (x) Operating RoE Returns (%) RoCE (Pre-tax) Angel RoIC (pre-tax) RoE Turnover ratios (x) Asset turnover (gross block) Inventory (days) Receivables (days) Payables (days) WC cycle (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest coverage
comparable with previous year ratios

FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E 4.5 2.6 0.8 1.5 0.5 2.9 1.1 22.1 20.4 35.0 1.4 112.6 11.5 70.4 1.7 13.4 3.0 0.5 18.6 14.0 24.9 20.9 1.5 60 40 75 11 0.5 1.1 6.3 7.1 3.3 0.6 1.5 0.5 4.2 1.4 12.8 12.8 27.2 1.4 151.6 7.2 74.9 1.5 8.3 5.2 0.6 10.0 8.6 15.9 9.7 1.8 63 36 62 30 0.6 2.0 2.8 5.1 2.8 0.6 1.5 0.6 5.5 1.9 17.7 17.7 32.7 1.4 163.8 6.6 81.9 1.3 6.9 4.1 0.9 9.3 6.9 14.2 11.2 2.1 61 35 54 38 0.9 3.4 3.0 5.7 3.3 0.5 1.5 0.6 6.8 1.6 15.8 15.8 27.8 1.4 177.6 6.0 79.2 1.1 5.1 3.8 0.9 6.3 5.4 11.7 9.3 1.8 61 35 54 43 0.9 4.4 2.3 6.6 3.2 0.5 1.5 0.6 6.7 1.3 13.9 13.9 28.4 1.4 190.1 5.4 73.8 1.2 4.8 4.1 1.0 5.5 5.5 10.4 7.5 1.7 60 35 54 42 1.0 4.5 2.0 5.8 2.9 0.4 1.5 0.5 5.7 1.1 15.8 15.8 31.4 1.4 204.5 5.8 74.0 1.2 5.1 3.9 0.8 6.0 5.7 9.7 8.0 1.5 60 35 54 45 0.8 3.7 2.2

Note: Some of the figures from FY2011 onwards are reclassified; hence some ratios may not be

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Hindalco | 1QFY2014 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Hindalco No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

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