Ratio Analysis of Hindalco

Industries Limited
 Profile of the Company
 Hindalco Industries Ltd is an Indian aluminium and copper manufacturing
company, is a subsidiary of Aditya Birla Group.
 It's chairman is Kumar Mangalam Birla and it's headquarter is located at
Mumbai, Maharashtra.
 It is an industry leader in aluminum and copper products. 
 It is one of the world's largest aluminium companies and one of the biggest
producers of primary aluminium in Asia
 In aluminum, the company is fully integrated with production ranging from
captive bauxite to an array of value added products, while in copper the
company is primarily into custom copper smelting. 
 It operates 51 units in 13 countries and includes a workforce of 35,000
representing 15 different nationalities.
Vision:
• To be a premium metals major, global in size and reach, excelling in everything
we do, and creating value for its stakeholders.
Mission:
• To relentlessly pursue the creation of superior shareholder value, by exceeding
customer expectation profitably, unleashing employee potential, while being a
responsible corporate citizen, adhering to our values.
Values:
• Integrity – Honesty in every action
• Commitment – Doing on the promise
• Passion – Energized action
• Seamlessness – Thinking and working together across each level
• Speed – Responding to stakeholers with a sense of urgency
 Various businesses and products:
• Aluminium
• Copper
• Chemicals
• Dry cargo handling
• Fertilisers
• Acids
The facility operates across the aluminium value chain from bauxite
mining, alumina refining, aluminium smelting to downstream rolling
and extrusions.
Ratios to be calculated
1. Liquidity Ratio
a. Current Ratio = Current Assets/Current Liabilities
Current Ratio 2019-20 = 20769/11520 = 1.8
Current Ratio 2018-19 = =21502.73/13415.56 = 1.6
Current Ratio 2017-18 = =20602.76/12986.27 = 1.5
b. Acid Test Ratio = Current Assets- Inventory- Prepaid expenses/Current
Liabilities-Bank overdraft- Short term loans
Acid Test Ratio 2019-20 = 20769-11225/11520 = 0.82
Acid Test Ratio 2018-19 = =21502.73-11394.46/13415.56 = 0.75
Acid Test Ratio 2017-18 = =20602.76-10738.38/12986.27 = 0.75
• 2. Turnover Ratio
• a. Inventory Turnover Ratio = Cost of goods sold/ Average Inventory
• Inventory Turnover Ratio 2019-20 = 1.6
• Inventory Turnover Ratio 2018-19 = 1.8
• Inventory Turnover Ratio 2017-18 = 1.9
• b. Total assets turnover ratio = Sales/ Average total assets
• Total assets turnover ratio 2019-20 =  0.58
• Total assets turnover ratio 2018-19 = 0.66
• Total assets turnover ratio 2017-18 =  0.61
• 3. Leverage Ratio
• a. Debt equity Ratio = Long term debt/ Shareholders equity
• Debt equity Ratio 2019-20 = 0.5
• Debt equity Ratio 2018-19 = 0.4
• Debt equity Ratio 2017-18 = 0.4
• 4.Profitability ratio
• a. Gross profit margin = Gross profit / sales *100
• Gross profit margin 2019-20 = 9.1%
• Gross profit margin 2018-19 =  9.2%
• Gross profit margin 2017-18 = 11.9%
• b. Net profit margin = Net profit/ sales *100
• Net profit margin 2019-20 = 620/40242*100 = 1.54 %
• Net profit margin 2018-19 =1205.43/45749.16*100 = 2.63%
• Net profit margin 2017-18 =1436.49/42809.15*100 = 3.35%
• c. Divident payout ratio = Divident per share/Earning per share*100
• Divident payout ratio 2019-20 = 1 / 2.79*100 = 35.84%
• Divident payout ratio 2018-19 = 1.2/5.41*100 = 22.18%
• Divident payout ratio 2017-18 =1.2/6.45*100 = 18.60%
• Current Ratio Decreased from previous year The company’s ability to meet
current obligations is not so great and the safety of funds of short-term
creditors is too less.
• Quick Ratio Decreased from previous year The firm will little lag behind in
quickly converting it’s current assets into cash or meeting it’s current
liabilities. 
• Inventory Turnover Ratio Increased from previous year The firm’s inventory
sells fast and doesn’t stay in the shelf or warehouse for a long time. 
• Total Asset Turnover Ratio increased from previous year. The firm is utilizing
available resources and capacity. 
• Dividend Payout Ratio Decreased from previous year The firm is using more
of it’s earnings to reinvest in the firm itself in order t grow further. 
• Gross Profit Margin Increased from previous year A good sign of profit
maximization , sustainability and growth.
• Net Profit Margin Profit . Increased from previous year Greater ability
in improving profit, minimizing cost and investing for beginners.
• Debt- Equity Ratio Decreased from previous year Lesser amount
of debts are being taken .
BalanceSheet - Hindalco Industries Ltd.​ ​

Rs (in Crores)​

Particulars​ Mar'20​ Mar'19​ Mar'18​

Liabilities​ 12 Months​ 12 Months​ 12 Months​

Share Capital​ 222​ 222.49​ 223.05​

Reserves & Surplus​ 45272​ 48335.2​ 49227.69​

Net Worth​ 45494​ 48557.69​ 49450.74​

Secured Loan​ 23044​ 19528.98​ 20291.9​

Unsecured Loan​ 0​ 0​ 0​

TOTAL LIABILITIES​ 68538​ 68086.67​ 69742.64​

Assets​ ​ ​ ​
Gross Block​ 34084​ 48529.76​ 48006.38​
(-) Acc. Depreciation​ 716​ 15006.98​ 13642.22​
Net Block​ 33368​ 33522.78​ 34364.16​
Capital Work in Progress​ 1282​ 981.82​ 736.73​
Investments​ 24639​ 25494.9​ 27025.26​
Inventories​ 11225​ 11394.46​ 10738.38​
Sundry Debtors​ 2093​ 2124.88​ 1737.25​
Cash and Bank​ 3280​ 1579.87​ 1821.35​
Loans and Advances​ 4171​ 6403.52​ 6305.78​
Total Current Assets​ 20769​ 21502.73​ 20602.76​
Current Liabilities​ 10095​ 12295.88​ 11923.86​
Provisions​ 1425​ 1119.68​ 1062.41​
Total Current Liabilities​ 11520​ 13415.56​ 12986.27​
NET CURRENT ASSETS​ 9249​ 8087.17​ 7616.49​
Misc. Expenses​ 0​ 0​ 0​
TOTAL
68538​ 68086.67​ 69742.64​
ASSETS(A+B+C+D+E)​
Profit & Loss - Hindalco
Industries Ltd.Rs (in Mar'20 Mar'19 Mar'18
Crores)
  12Months 12Months 12Months
INCOME:
Sales Turnover 40242 45749.16 43446.04
Excise Duty 0 0 636.89
NET SALES 40242 45749.16 42809.15
Other Income 739 940.03 947.82
TOTAL INCOME 40981 46689.19 43756.97
EXPENDITURE:
Manufacturing Expenses 6994 6936.94 6030.11
Material Consumed 22879 27100.27 24999.73
Personal Expenses 1922 1981.71 1894.65
Selling Expenses 0 0 0
Administrative Expenses 4783 5483.63 4760.59
Expenses Capitalised 0 0 0
Provisions Made 0 0 0
TOTAL EXPENDITURE 36578 41502.55 37685.08
Operating Profit 3664 4246.61 5124.07
EBITDA 4403 5186.64 6071.89
Depreciation 1708 1693.16 1617.32
Other Write-offs 0 0 0
EBIT 2695 3493.48 4454.57
Interest 1679 1683.04 1900.54
EBT 1016 1810.44 2554.03
Taxes 332 605.01 792.33
Profit and Loss for the
Year 684 1205.43 1761.7

Non Recurring Items -188 -2.27 -284.96

Other Non Cash

Adjustments 0 0 0

Other Adjustments 124 2.27 -40.25

REPORTED PAT 620 1205.43 1436.49