Ladies and gentlemen, good day. Welcome to Hindalco Industries Q4 FY 2021 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Subir Sen from Investor Relations of Hindalco. Thank you, and over to you, sir. Thank you. A very good evening and morning to everyone. I hope you all are safe and in good health. On behalf of Hindalco Industries, I welcome you all to this earnings call for the fourth quarter and financial year 2021. On this call, we refer to the Q4 investor presentation available on company's website. Some of the information on this call may be forward-looking in nature and is covered by the safe harbor language on slide number two of the said presentation. In this presentation, we have covered the key highlights of all our business segments for the fourth quarter and the financial year 2021, and a segment-wise comparative financial analysis of India business and our overseas subsidiary, Novelis. All prior year financial numbers have been regrouped or reclassified as per the Ind AS. We have with us from Hindalco's management, Mr. Satish Pai, Managing Director, and Mr. Praveen Maheshwari, Chief Financial Officer. From Novelis's management, we have Mr. Stephen Fisher, President and CEO, and Mr. Devinder Ahuja, Chief Financial Officer. Following this presentation, the call will be open to any questions you may have, an audio replay of this call will also be available on our website. Let me turn this call to Satish. Yeah. Thank you, Subir. Good afternoon and morning, everyone. Thank you for joining today's conference call on Hindalco's Q4 earnings. I hope you and your families are keeping safe as we continue to manage through the challenges of the second wave of the COVID pandemic. To start with, I want to give you an update on the actions we are taking to combat COVID-19 on Slide 5 and 6. With the second COVID wave surging through India, Hindalco's management is fully engaged in efforts to take care of our employees and their families. We have also extended strong support to the communities around our plants and to various government bodies. Starting on Slide 5, vaccination is the key to protect our employees, and Hindalco has facilitated over 200,000 vaccines with 80% of the eligible employees that's above 45 and families vaccinated, including contract workers. Hindalco has also enhanced the medical coverage to cover special reimbursements for home care and to meet all hospitalization expenses beyond insurance. This is applicable not only to our employees and families, but also to contract workers, third-party employees, and their families. Other steps including a dedicated hotline for teleconsultations with Apollo Hospital, a 24/7 helpline for medical and mental health support, and a team of 300 dedicated volunteers to help those in need. We have also announced ex gratia benefits to support families of deceased employees, again, including contractual workers for housing, medical, schooling, and other expenses over the next few years. All essential and safety steps have been implemented at our facilities to ensure minimal impact on our operations. Coming to Slide 6. On our action for helping the community, Novelis has donated 1,000 oxygen concentrators, which by the way, have since yesterday already been distributed in various cities and villages to government hospitals. Hindalco has procured another 1,500 oxygen cylinders that are being distributed to various hospitals and COVID care centers around our plant locations. We have supplied 1,600 tons of liquid oxygen so far from our copper plant at Dahej to hospitals in Gujarat. We have revived the defunct Karari oxygen plant in UP and are now supplying 300 refilled oxygen cylinders daily to hospitals in UP. PSA oxygen plants are also being set up in Utkal and Renukoot. We have a dedicated medical team of 77 doctors and 275 paramedics working day in and day out. Over 450 hospital beds equipped with ICUs, ventilators, BiPAPs, and oxygen concentrators have been made available for the community across our various locations. We are also setting up RTPCR testing labs and CT scan facilities in Utkal to support the larger community there. With that, I'm going to switch over on Slide 7 to some key highlights of our business for Q4 FY 2021 versus the corresponding quarter last year. Hindalco delivered a record financial performance in Q4 across all businesses, backed by improved macros, thrust on operational efficiency, cost optimization, better product mix, higher volumes, and strong market recovery. Novelis recorded an all-time high quarterly shipment of 983 K t and an EBITDA of $505 million in Q4 FY 2021. EBITDA per ton stood at $514 a ton, up 9%, while net income from continued operations grew 186% year-on-year at $180 million. Novelis also successfully placed a 3.375% EUR 500 million senior unsecured green bonds in Europe for eight years due in 2029. Novelis also received credit rating upgrade from Moody's and S&P in March 2021. Moving on to Hindalco's India Aluminium business performance in Q4 FY 2021. Business EBITDA for Hindalco India Aluminium was at a record high of INR 1,610 crores, up 54% year-over-year. The EBITDA margin was at a healthy 27%, up 729 basis points year-over-year. This margin was the highest in the last 12 quarters. Metal sales were up 5% at 329 Kt, with record value-added product sale at 92 Kt, up 21% on a year-over-year basis, supported by the continued revival of the domestic market. Our 500 Kt Utkal expansion project is on track with mechanical completion by this current quarter end and commercial production to begin in Q2 of the current financial year. Turning to the quarterly performance of the copper business on slide number eight. Cathode production was at 97 Kt, up 28% year-on-year on account of stable operations. Metal sales was at 107 Kt, up 24%, while copper rod sales were in line with the corresponding quarter of the previous year. Copper EBITDA was recorded at INR 269 crore in Q4 of FY 2021. Coming to the quarterly consolidated performance, the business EBITDA was up 33% year-on-year at INR 5,597 crore. PBT from continuing operations before exceptional special items was up 41% year-on-year at INR 3,134 crore. Consolidated PAT for continuing operations before tax-affected exceptional and special items was up 42% year-on-year at INR 1,866 crore. Hindalco continues to maintain its strong treasury balance of around $1 billion in Novelis and INR 11,200 crore in India at the end of March 2021. The consolidated gross debt was down by around INR 18,200 crore, while net debt was lower by around INR 14,900 crore from the peak on 30th June 2020, resulting in a significant improvement in net debt to EBITDA to 2.59x at the end of March 2021. CRISIL upgraded Hindalco's credit rating outlook to positive while reaffirming its AA rating. On global recognition, Hindalco has been included in the S&P Global Gold Class category as a sustainability leader in the S&P Global Sustainability Yearbook in 2021, reflecting our strong commitment to ESG. Turning now to the broader economic environment in Slide 10. While global economic activity is gradually recovering from the pandemic-induced slowdown, it remains uneven across countries and sectors. The GDP growth is projected to contract by 3.3% in calendar year 2020 and is expected to rebound to 6% in calendar year 2021 and 4.4% in calendar year 2022, as per IMF's latest forecast. The global output is projected to reach its pre-pandemic level by mid-2021. The rebound in 2021 will be supported by ongoing vaccination drives, sustained accommodative monetary policies, and sizable fiscal stimulus. A huge U.S. fiscal stimulus of $1.9 trillion is expected to have a positive spillover effect on global growth as well. 2021 will be a year of divergent recoveries. This recovery will be largely contingent on the pace of vaccine administration and its efficacy against emergent variants of the virus. As per IMF, China with 8.4% growth and India with 12.5% growth will lead this recovery within emerging economies, while the U.S. will lead the recovery with a 6.4% growth rate amongst the advanced economies, thanks to the massive fiscal stimulus. Multi-speed recoveries are linked to stark differences in the pace of vaccine rollout, the extent of economic policy support, and the resurgence of virus and containment measures, as well as structural factors. China has already returned to its pre-pandemic GDP levels of 2020, while the U.S. and India are expected to return to pre-pandemic levels by H2 of 2021. Containing the resurgence of COVID cases, especially the new variants, remains the key focuses for governments globally. On the domestic front, the second COVID resurgence continues. The key focus now is on containing the spread of the second COVID wave to mitigate its impact on the economic recovery. The GDP growth contracted 16% year-on-year in H1 FY 2021, with only a marginal recovery of 0.4% was seen in Q3 of FY 2021. Economic risks have been mounting amidst state-level restrictions and partial lockdowns, due to which services, particularly those which have high contact risk, mainly hospitality, travel, and tourism, have been impacted. This has had a ripple effect on manufacturing as well. Early high-frequency indicators like PMI data have eased in the month of April compared to March. Construction and fuel demand, GST e-way bills, and certain employment indicators in April suggest that the economy has started to feel the pain. The second COVID wave adds uncertainty to the Q1 FY 2022 outlook, but recent data suggests that the worst may be over. The RBI has stepped up and announced liquidity support measures for healthcare sectors and support for small enterprise and borrowers to counter the crisis. Stepping up the vaccination drive remains the biggest stimulus for economic recovery in the country. Let me now take you through the aluminum industry overview on Slide 11 and 12. The global production in calendar year 2020, the world grew by 2% to around 65 million tons, led by a 4% increase in the Chinese production, while the rest of the world growth was flattish. Global consumption declined by around 3% to around 63 million tons because of contraction in demand of nearly 12% in the world ex-China, partially offset by the Chinese consumption growth of 4%. Consequently, while China was in a deficit of a little over 1 million tons, rest of the world was in a surplus of 3 million tons. Hence, the globe had an overall surplus of 2 million tons in calendar year of 2020. It must be noted that in Q1 CY 2020, accounted for the majority of the surplus coinciding with the onset of COVID-19 last year. With the strong stimulus measures of around 20% of the world's GDP, the economic sentiments were lifted and the global surplus has become narrower over the year. In Q1 of CY 2021, the overall world consumption saw a growth of 16%, largely due to the base effect reaching 6.2 million tons, while the production expanded by 6% at 16.8 million tons. There was a very small surplus of 0.6 million tons. World, excluding China, the consumption grew 5%, supported by growth in auto electrical and consumer durables demand. The production grew by 1%, leading to a marginal surplus of only 0.1 million tons. In China, strong automotive, real estate and solar demand led to sharp growth of aluminum consumption by around 27% year-on-year to 9.1 million tons, while the production grew by 9% year-on-year to 9.7 million tons, leading to a surplus of about 0.5 million tons in Q1 of calendar year 2021. With the improvement in global consumption, aluminum prices have recovered sharply by 9% to $2,096 per ton in Q1 of calendar year 2021 from an average of $1,916 per ton in Q4 of calendar year 2020. On a quarter to date basis, the Q2 CY 2021 global aluminum prices continue to grow and have reached about $2,370 per ton. Coming to Slide 21, the domestic aluminum industry in Q4 of FY 2021 is estimated to reach the highest ever sales in any quarter on the back of a strong recovery in transport and consumer durables. The import of scrap, particularly, is likely to witness a sharp growth of 20% to 415 Kt, given the healthy growth in the transport and auto sector, while imports excluding scrap is likely to grow by 44% to 240 Kt. It is estimated that the domestic producer sales growth will be around 12% year-on-year at 422 Kt. The government stimulus package with a strong thrust on infrastructure, housing, and manufacturing sectors is helping the revival of economic sentiment. Auto and packaging demands have continued to remain robust in line with the growth in pharma and flexible packaging segments. We are observing some signs of recovery in the demand in the electrical power, building and construction sector. However, the economy may face headwinds as the second wave of COVID-19 related lockdowns continue to restrict economic activities. Moving to Slide 13, the global FRP demand is expected to grow by about 8% in calendar year 2021 versus a contraction of around 5% in calendar year 2020 on account of recovery in demand and the base effect. You must have gone through the details of the segment-wide end market outlook in the Novelis presentation earlier. I will, however, quickly refresh some specific end market outlook for calendar year 2021. Beverage cans continue to show its resiliency with a higher at-home consumption that favors a package mix shift towards increased demand for sustainable aluminum cans across all regions. The overall market demand for beverage can sheet is estimated to grow by 3%-6% in calendar year 2021. In the automotive market, with OEMs focusing on sustainability and consumers adopting electric vehicles, there is an increased demand for aluminum in this segment across regions. This segment is estimated to grow between 25%-30% in calendar year 2021 due to the base effect and continued revival of demand. The semiconductor shortage is expected to have a limited short-term impact on OEM production and sheet demand. The demand for premium aerospace sheets from OEM is expected to remain at similar levels at FY 2021 with an uneven recovery to follow as vaccination rollouts are a positive step towards increasing consumer air travel. The overall demand in the aerospace sheet is expected to grow in the range of 5%-6% in calendar year 2021 as air travel normalizes. India capacity demand is estimated to surpass the pre-COVID levels of Q1 or Q2 FY 2020 in Q4 as the domestic demand continues to revive. Stable demand is expected from pharma and food package industry, while the auto and B&C sectors may see some headwinds due to the surging second wave of COVID. Turning to the copper industry globally on Slide 14. In calendar year 2020, on a yearly basis, global copper consumption declined by 1% to 23.2 million tonnes. China consumption grew by 7%, whereas the world ex-China consumption declined by 8%. On a quarterly basis, global copper consumption grew by 14% to 5.5 million tonnes in Q1 CY 2021 compared to 4.9 million tonnes in Q1 CY 2020. Chinese refined copper consumption grew by 37% as China was severely impacted by COVID in Q1 of calendar year 2020 compared to the rest of the world. The world ex-China is still struggling with the second wave of COVID, as a result of which consumption has declined by 2% year-on-year compared to the corresponding quarter of the last year. On global levels, slow recovery was observed in Q1 calendar year 2021, and the average global quarterly consumption has still not reached the pre-COVID levels of 6 million tons. Throughout the end of 2020 and the opening of 2021, copper prices rose to an eight-year high of around $8,000 per ton. Slow but continued recovery in copper demand, coupled with COVID-related mine disruptions compared to smelters, is driving the copper prices higher. On the concentrate side, mines output remains impacted due to COVID, resulting in downward pressures on spot TC/RC while affecting the entire value chain of custom smelters in the current scenario. Coming to Slide 15. Owing to COVID spread, the refined copper market dipped by 24% to 566 Kt in FY 2021 from 750 Kt in the last year. Because of the CVD implementation on wire imports by the government, the share of imports declined to 31% in FY 2021 from 45% in FY 2020. On a quarterly basis in Q4, the overall domestic market reached 161 Kt, which is still lower by 15% compared to 190 Kt during pre-COVID quarters. In this quarter, sales of domestic producers increased by 2%, whereas imports declined by 24% on a year-on-year basis compared to the corresponding quarter of the last year. The market share of imports has decreased to 26% in this quarter versus 32% in the corresponding quarter. Praveen will now take you through the performance highlights of each of the business segments during Q3. Thanks, Satish. In this part of the presentation, I shall take you through the operational and financial performance of each of our businesses. Starting with Novelis on Slide 18, Novelis clocked a record financial performance in both their existing business as well as the acquired business of Aleris. Novelis achieved record operational and financial results on almost all parameters. It recorded an all-time high shipment of 983 Kt, up by 21% year-on-year, with a significant progress across all the product segments. We are also progressing equally well with respect to the various ongoing expansion projects. The automotive finishing lines in both Guthrie, U.S., and Changzhou, China, were commissioned during FY 2021 and have started their commercial shipments. The recycling, casting, and rolling expansion project at Pindamonhangaba, Brazil, is on track and is expected to be commissioned by the end of the next financial year. The groundbreaking for the new cold mill project in Zhenjiang, China, is expected in the middle of next financial year. On Slide 19, you can see the comparative financial performance trend of Novelis reflecting its record quarterly performance on the back of higher volumes, cost control, and product mix improvement. This also includes an EBITDA contribution of $60 million in Q4 and $200 million in FY 2021 by the acquired Aleris business. Slide 21 shows the details of the performance of the Indian aluminium business segment. The aluminium metal production was at 316 Kt. In line with the sharp recovery in the market, the production of downstream products was higher by 13% year-on-year at 89 Kt in this quarter. However, alumina production was at 697 Kt in Q4, 3% lower year-on-year due to a maintenance shutdown at Utkal refinery. On the sales front, the share of domestic sales has reached 50% in this quarter. VAP sales were at a record high of 92 Kt, reaching 28% of the total metal sales, reflecting a sharp recovery of the domestic VAP market in this quarter. Moving on to the financial performance of the Indian aluminum business on Slide 22. This segment posted revenue of INR 5,969 crores in this quarter, reflecting a growth of 13% year-on-year on account of higher global aluminum prices. Aluminum EBITDA was at a record high of INR 1,610 crores, up 54% year-over-year, on account of favorable macros, lower input costs, better efficiencies, and strong market recovery. The EBITDA margins in this quarter were highest in the last 12 quarters at 27%, up 729 basis points year-on-year. Moving to Slide 24. The overall copper metal production was at 97 Kt in this quarter, up 29% on account of stable operations. The metal sales were also higher by 24% year-on-year on account of higher demand. The production of CC rods was higher by 7% at 76 Kt, while sales stood at 73 Kt, which was in line with the corresponding period of the last year. The financial performance of the copper segment is on Slide 25. Revenues were up 80% year-on-year at INR 8,508 because of higher global prices of copper and high volumes. EBITDA was higher by 33% sequentially at INR 269 crores in this quarter on account of higher volumes. Let's turn to our consolidated financial numbers for quarter four on Slide 27. Hindalco reported an outstanding consolidated financial performance with Q4 revenues of INR 40,507 crores, up 38% year-on-year. Business EBITDA of INR 5,597 crores, up 33% year-on-year. Before exceptional and special items, Profit before tax and Profit after tax for continuing operations were up 41% and 42% year-on-year at INR 3,134 crores and INR 1,866 crores respectively. The detailed quarterly comparative financial numbers are attached as an annexure to this presentation on Slide 37. The Indian business of Hindalco also reported a remarkable performance in this quarter, with revenues of INR 14,471 crores and Business EBITDA of INR 1,886 crores, both up around 45% and 30% respectively. Profit after tax was at INR 653 crores, up 72% year-on-year in Q4 FY 2021. These details are provided as an annexure to this presentation on Slide 38. Slide 28 shows the reduction of over INR 18,200 crores in our consolidated gross debt and of INR 14,900 crores in our consolidated net debt from the peak in June 2020 levels. This, along with increasing EBITDA, has led to a substantial improvement in the net debt to EBITDA ratio from a peak of 3.83 x in June 2020 to 2.59 x at the end of March 2021. Let me now hand over this call back to Satish to give you a perspective on our sustainability updates and our key focus areas. Thank you, Praveen. Coming to Slide 30, I would like to share Hindalco's progress across various sustainability metrics and trends over the last four years. On the environment, there is a strong focus on waste, air emissions, and biodiversity and water. Fresh water consumption reduced by 8.5% in FY 2021 year-on-year to 71.7 million meters cubed, with a continuous reduction in the consumption of water at all locations over the years. Hindalco has added one more site in our zero liquid discharge league with a target to reach all sites zero liquid discharge by 2025. On waste recycling, in terms of waste that is hazardous, non-hazardous, and bulk waste such as fly ash and bauxite residue, we are committed to 100% recycling. Last year, we have enhanced recycling of waste and usage in other industries to 79%, which is a 15% increase over previous years and reducing the landfill. The commitment is to reduce landfill by another 5% year-on-year, moving towards zero landfill by 2030. On the green cover and biodiversity, the company did very well to increase the green cover by another 5% year-on-year in FY 2021 with the scientific biodiversity management plan evolving with the IUCN, International Union for Conservation of Nature, at four sites, with three additional sites getting added every year. Green cover at all sites is being enhanced with tree tier plantation. On Slide 31. On the renewable energy and safety updates, we remain committed to our target of 100 MW of renewable capacity in FY 2022. We are also exploring and evaluating emerging technologies in the space of energy storage, carbon capture and utilization, and hydrogen to be used as fuel. The specific energy consumption in aluminum was recorded at 83% in FY 2021 from the base year of FY 2015. The LTIFR was 0.46 in FY 2021. We stay committed to zero harm and have been continuously upgrading our safety programs to meet international standards and provide the safest atmosphere for all our employees and contract workmen. Coming to Slide 33. Let me conclude today's presentation with our key focus areas. We delivered yet another strong and resilient performance across all our segments while maintaining safe and stable operations as we are catching up with a sharp recovery of markets supported by improved macros. The cost competitiveness of Hindalco smelters continues to position it in the first quartile of the global cost curve. We continue to strengthen our balance sheet with robust cash generation both in India and overseas, while accelerating the pace of deleveraging to reach the optimum leverage of 2x- 2.5 x in this sector. The Aleris integration is providing accelerated synergistic benefits along with positive EBITDA contribution as we continue to unlock and capture the entire value of this acquisition. This year, Aleris contributed around $200 million to the EBITDA, including synergies. We recently announced our capital allocation framework with a clear roadmap to deleveraging profitable growth via organic expansion and distribution of shareholder returns. Another critical area where Hindalco has done remarkably well over the last few years is on ESG. We shall continue to strive on our Three R Model of Sustainability with a strong focus on our ESG commitment while creating a greener, smarter, stronger, and sustainable world together. We continue to thrive on our downstream strategy, supported by product innovation, complete digitalization, organic expansions with a diversified product mix, and continue to be the global leader in aluminum downstream value-added segment. With that, I want to thank you for your attention. The forum is now open for any questions you may have. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are required to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Anuj Singla from Bank of America. Please go ahead. Thank you very much. Good evening, everyone. My first question is with regards to hedging in the aluminum business. Aluminum prices, this is $2,400-$2,500 we are seeing after a three-year lag. These are very attractive price levels. How do you look at the hedging policy for the next year? Would you rather overhedge at these prices, given that these are material high levels, or will you still stick with your 20%-25% kind of hedging on an ongoing basis? That's a very good and difficult question, Anuj. I think that to answer it, first I have to tell you that our view on the macro continues to be very bullish for aluminium. We really believe, after having looked at all the reports and the strong demand in China and the U.S., and the fact that in China, they are very convinced that the production is going to be capped at a max of 45 million tons. We believe that the supply-demand tightness is going to continue, and hence aluminium prices will remain firm. That is why we are not going to overhedge at these current levels yet. What have we done so far? The last quarter, when we had told you that our hedged position for Q1 was around 28%, I think at INR 1,800 and something. We have added another 5% at $2,344 a ton. That's all we have done so far, and we think that we will be very cautious before we commit any more. I think that even in FY 2023, we added another 5% at $2,500 a ton. Even if we do now, we're going to do in extremely thin slices because we still think that this aluminum price rally has got more legs. Anuj. Understood, sir. Right there. The second question is with regards to how do you see the costing on the aluminium side shaping up? We have seen the aluminium prices obviously rebounding. I think there is some kind of cost escalation we have seen across various ends, maybe tightening on the energy side as well. How do you see the interplay working out in terms of profitability for us? I think in Q4, honestly, we were pleasantly surprised because even though I had guided 1.5%-2%, the cost increase Q4- Q3 sequentially was only 1%. That was largely because all the coal that we had bought. Coal prices in Q4 compared to Q3 were flat. April and May, we are already seeing the impact of the newer coal prices, which we bought on auction during February, March. CPC, pitch going up. We are factoring that Q1 versus Q4, the cost of production will be up 4%. This is largely as a result of coal, CPC, and pitch. Okay. Sir, lastly, one data question and CapEx guidance for the Indian operations for FY 2022? We're going to spend about INR 2,700 crores. Last year, if you remember, once COVID hit, we cut back the CapEx to about INR 1,500. We actually spent about INR 1,600. This current year, we plan to spend about INR 2,700, largely doing many of the downstream projects, the Silvassa expansion, all that will largely come in this year. Understood. Thank you very much. All the best. Yeah, thanks, Anuj. Thank you. The next question is from the line of Pinakin Parekh from JP Morgan. Please go ahead. Yeah. Thank you very much, sir. Sir, my first question is on aluminum upstream smelting. You sounded very positive on the aluminum outlook, and it looks like China's decarbonization could really move the industry out of what has been a very long, 10-year plus pricing slump. In that context, sir, if the company is positive on LME aluminum prices, when can we see smelter upstream expansions in India? Is this something which is not on the table? Pinakin, to be fair, it's still not on the table, because there are two issues that we need to resolve. One is our own ESG commitments. China's commitments is they're not expanding because they also have the same commitments to carbon reduction that we have. To announce a coal-based smelter expansion, I would be very hesitant. The more important point is that still the coal prices outlook over the next 5- 10 years does not give us a good rate of return for a smelter expansion. As a combination of the two, we will continue to evaluate, but it's not on the cards right now. We have enough projects on the downstream that we want to do first. Pinakin? Just to clarify further, sir. Thank you for that. That while we see a positive LME aluminum pricing environment over the next few years, overall, at a top-down basis, our business portfolio is more downstream-oriented. Upstream aluminum would be less than 30% of EBITDA. Going forward, sir, if aluminum prices remain elevated in a INR 2,500- INR 3,000 range, does the company see the business model as being too excessively downstream-oriented? I think that, Pinakin, let's see whether it remains high for many years. This is not the first time aluminum has gone up, and then it has come down within a year and a half as well. I think that trying to make a long-term strategy based on current LME, let's put it this way, we announced a strategy in our investor meet. We will stick onto that strategy. It's not that we are inflexible. If aluminum prices continue to stay high and we think structurally something has changed, and I have to repeat again, we get clarity on energy source and price, then as you all know, for Aditya and Mahan, it's very easy for us to do an expansion. We don't rule it out, but one quarter or two quarters of high LME will not mean that we completely change the company strategy, Pinakin. Understood, sir. Sir, just last question. When the company had given out that investor strategy, there was a net debt to EBITDA target of less than 2.5x. The last two quarters under EBITDA has been over INR 5,500 crores and INR 5,500 crores, and the net debt is at INR 47,000 crores. So on a spot annualized basis, we are approaching 2x net debt to EBITDA. If we hit the target earlier than expected, sir, how should we look at that incremental cash generation to be divvied up between what are the three buckets identified at that point of time? The buckets that we had identified were organic expansion, deleveraging, and shareholder return. If we do get more cash, first priority will always be organic expansion. If we find good projects that will return good IRRs, that is still our first choice. I think second, we will look at deleveraging, and if you take shareholder return, if you see that we have already made a step change in the dividend that we announced today, that we are committed to in the investor call. We are going to continue at that levels of dividend for a while now. Understood, sir. Just to triangulate over the next two to three quarters, if EBITDA stays at these levels, we should get more clarity on the next round of organic growth project, right, sir? Yes, I think we have quite a few, to be honest, especially in Novelis, there are some very attractive projects. If we have more cash, we will be putting it into organic CapEx, sir. Understood, sir. Just one addition, Pinakin, here. You should be also considering that given the LME has gone up both in copper and aluminum, the working capital requirement going forward is going to be higher. Yes. Some amount of money will probably get blocked there as well. That's a good point. It's fair to say that our Q1 net debt to EBITDA, especially in India, may slightly go up because the working capital block, especially in copper, is going to be quite high at $10,000 per ton. It's very helpful. Thank you very much. Yeah, thanks, Pinakin. Thank you. The next question is from the line of Amit Dixit from Edelweiss. Please go ahead. Yeah. Thanks for taking my question, and congratulations for a good set of numbers. I have couple of questions. The first one is on copper. Essentially, the way we see copper prices going up and the kind of bullish scenario that is in copper because of EV and everything else. Given that TC/RC margins are quite low and going further lower because of concentrate less efficiency. If there's any plan on the table to acquire some copper mining asset that is an attractive one in India or maybe overseas? Amit, this is the worst time to buy a copper asset with the prices so high. If you try to go and get a copper mine when copper is at $10,000, you are buying at the peak. Really, no, we are not looking at buying into a copper mine at this stage. No. Also, we are not so much in mining. Our main business is manufacturing. Mining is required only to support manufacturing. In case of copper, we find that with long-term contracts in place, we've not had any difficulty in terms of sourcing copper concentrate so far. We do not even see the need for it at this point of time. Yeah. Exactly, yeah. It's the wrong time anyway. Okay. Fair enough. The second question is on essentially your ESG milestones. Novelis laid out some intermittent milestones for CY 2026, such as reducing the carbon emission intensity and all. Have we also thought of similar lines of laying out our CY 2026 or maybe CY 2025? While long-term targets remain intact, having to go to zero ZLD and all, are there any intermittent targets that you have in terms of Yeah. Yeah. I have given those. I said ZLD in all sites by 2025, zero landfill by 2030, and a 5% reduction year-on-year. On each one of our water waste, specific energy consumption, we put every year a target reaching toward a deadline in 2030, 2040 going forward. What about the carbon emission intensity that we have 83% compared to 2015 baseline? That's the most difficult one for us. We are planning to reduce it by another 5% this year, and it will continue. At the best, we will get to about, let's say from 2015, about 70%-75%. Largely what we are going to do is the offsets. That's why we are trying to increase the renewables. We are actually going and trying to get new energy sources like gas. All that, we have built a fairly detailed model of how we are going to reduce the carbon per ton down to about 12 tons of CO2 per ton by 2035. Okay. 12 tons per CO2 by 2035. Yes. Okay. That's helpful. Thanks a lot, and all the best. Thank you, Amit. Yeah. Thank you. The next question is from the line of Indrajit from CLSA. Please go ahead. Hi. Thank you for the opportunity. A few questions from my side. First, on the entire green aluminum thing. Sorry for harping it a few more. Some of your competitors in their recent calls have mentioned that they are getting more inquiries on low carbon aluminum. Do we see any bottleneck or any hindrances for our aluminum sales in the near- term because of that? No. We are having no problem in getting any sales. I think you have to remember that people are doing a little bit of marketing, and everybody will do it. In fact, as we get to 100 MW of solar, I think I will claim that 5% of my aluminum is green as well. We are more, how should I call it, much more serious about ESG than just playing on the smelting target of carbon right now. The way we have positioned ourselves is that we are looking across the whole chain. With Novelis, we are leaders in recycling. I think that what we are trying to say is that just besides the carbon emitted in the smelting process, overall, a circular economy of aluminum will bring the carbon footprint down a lot more. We are appealing from that point of view. Just selling our primary metal from India right now, no problem. That's helpful. Second, if you can give some guidelines on how was the coal mix in Q4 and what it could be in the first half of this year in the aluminum business. Q4, as I was telling you, we were pleasantly surprised because linkage coal was 93%. The full year average was about 74%, but in Q4, linkage coal was 93%. The cost of production in Q4 was only 1% above. I think that we will go back in Q1 to linkage coal being 74%, 75%, e-auction being about 15%, and then our own mines being the rest in Q1. We are guiding that COP will be up by about 4% Q1- Q4. Sure. That's helpful. Next, lastly on the tax. Is there any tax incidence on the dividend that will upstream from Novelis to the parent entity? See, you should look at the consolidated cash flows, and what we have promised is that we are going to utilize to the extent of 8%-10% of that consolidated cash flow in terms of shareholder returns. The fungibility of money between Novelis and Hindalco has already been established even in the past. I can confirm to you there are no major tax implications when we move the money around between Novelis and India. Okay. Just on a guidance of standalone and consolidated tax rate will be similar to FY 2021 level for the full year next year, or there could be sharp variance? No, I don't think there should be any sharp changes from here to next year. Novelis tax rate is a little under 30% normally. Q4 is an aberration because of certain one-timers and because Q4 typically is more sensitive because it has to adjust for the full year. Indian tax rate is roughly around 36% or so, which is normal. We are not expecting any major changes. Sometimes in case of Novelis, because of the geographical mix of the profit before tax, there may be some changes, but we are not seeing any major significant changes going forward. Sir, thank you so much. That's all from my end. Thank you. The next question is from the line of Amit Murarka from Motilal Oswal. Please go ahead. Mr. Amit Murarka, your line is in talk mode. Kindly go ahead with your question, please. As there is no reply from the current participant, we move to the next question from the line of Ritesh Shah from Investec. Please go ahead. Hi, sir. Thanks for the opportunity and congratulations on the good set of numbers. Couple of questions. Sir, my first question is, on one of the slides you have given the imports number for the aluminum scrap basis, which has increased from 166 Kt-240 Kt for India. Are we speaking with the government on any potential measures to restrict aluminum imports? That's one. What implication would this have on the downstream CapEx that we have announced on the aluminum side? I do not know the HSN code for the imports or the breakup over that. If you could put it in context with the expansion plans that we have, that will be very useful, sir. We spend some time analyzing the 240 Kt- 160 Kt. The first thing you have to realize that in the 240 Kt, any metal sold in an SEZ comes in that. There's about 26 Kt of metal sold by our competitor from an SEZ, which you have to subtract from the 240 Kt. The rest of the 240 Kt, when you look at it's largely coming from ASEAN countries and China. The government is actually working a lot with us. There is a CVD going on against wire rod, against Malaysia. There's an FRP anti-dumping hearing that is just starting. There's quite a lot of efforts being made by the government to reduce the import of value-added goods coming into India. We are working with the government, and I think that our part of the bargain, which we have told the government, is we are going to ramp up our downstream capacity so that we can meet the domestic demand in terms of quantity as well as quality. Which is a key part of why we are doing our downstream strategy, because in India, the demand for downstream things is growing, and if we don't put in that capacity, it's going to come imported. Right. Should we expect any trade measures over here? You did indicate wire rod against Malaysia, FRP anti-dumping duties. My simple question is, basically, when we have looked at this incremental expansions, how should we capture the risk of the threat of imports? No. look, one thing I'll tell you, right now we take into account the current pricing, and we do our IRR calculation based on that. It's not that the market in India is growing and majority of our customers, if they can buy it from an Indian company in the same quality, they will buy it from us. Many have in fact started to tie up because I'll give you example, a lot of Western companies in India are slowly trying to diversify their supply chain from China. Many have approached us to put in downstream capacity in extrusions and FRP to meet that demand. If the government puts in duty, it's an additional benefit to us. Even without that, the business case for expanding downstream in India stands strong. I don't know if I'm getting clear. Yes, sir. That helps. Sir, my second question is on the ESG side. It was not on the Novelis call, but wanted to understand the rationale for a green note wherein the coupons are, say, 3.3% something. Had it been different had we gone for a bond issuance, specifically given Novelis did come out with certain environmental targets post the green note issuance? That's one. Secondly, the interest cost at Novelis is still upwards of 5%. Is there any room for further green issuances at Novelis level? Something similar at India level, given you indicated that we are working on carbon capture and storage, which probably it's too early stage, but is that also a possibility? A main question, in the prior call you had indicated that at $5 per MMBtu of gas supplies, things can actually be worked out. Any particular update on that? Thank you so much. I'm going to let Dev answer the green bond and the Novelis interest rate. On the gas, this COVID actually slowed down the gas pipeline that was coming in Jharsuguda and Sambalpur area. I hope now that after the second wave it picks up because we really would like to get gas supplies coming in and I think the government is focused on increasing the gas. It is fair to say that because of all this COVID mess we have lost a year with all these gas pipeline constructions that were going on. Dev, you want to take the- Yes, absolutely. Let me take it one at a time. The first point you made was that would the interest rate of the 3.375 green bonds be lower had we been announcing all the targets ahead of that? Well, not really, no. I think that we have been fairly articulate about our commitment on ESG. No, it would not have made any difference at all on the interest rate. It is largely driven by market forces at that time, the answer is no. When you say that we have an interest rate of over 5%, the only coupon that is sitting at over 5% is the 5.875 2026 bond. Our mind will stay open to doing the refinancing of that at the right time, at the right opportunity. I mean, the call window for that opens in September, but we keep our mind open to doing it at the right time. Outside of that, no, I think that our average long-term rate is now sitting somewhere in the mid threes or thereabout. I think we are in a very good place in terms of both the maturity profile of the debt as well as on the long-term interest cost. That's very useful. Thank you. This last question, any particular update on RoDTEP scheme? I think we had certain MEIS benefits. Any update over there will be useful. Thank you so much. Yeah, the RoDTEP, we are expecting an announcement any time. By the way, we have asked for about 5%. I don't know whether the government will have money to afford the 5%, but we should get something. I mean, the MEIS was 1%-1.5%. We lost about INR 100 crores because of that going off. INR 200 crores. Okay. I hope that the RoDTEP will come at least at that level, if not more. We have asked for 5%. It should be retroactive from 1st January when they have notified it. It's expected any time now. That's very useful. Thank you so much, Devinder Ahuja. Yeah, thank you. Thank you. Before we take the next question, a reminder to the participants, please limit your questions to two per participant. Should you have any follow-up, may I request you to rejoin the queue. The next question is from the line of Samuel Chen from Alliance Bernstein. Please go ahead. Good. Can you hear me? Yeah. Can hear you, Samuel. Go ahead. Good. All right. Thank you. A couple quick questions and congrats on the great result. Once the Utkal Alumina Site is operational, what's your plan for the current site, which is at a much higher cost compared to the new site? That's one. Two, just given all the conversation out here today, is it fair to say that 5- 10 years from now, we're looking at the India part of Hindalco, as we know, basically becoming just Novelis in a sense that you will be concentrating on downstream organic operation. Yes. I think, Samuel, I'll answer the second part first. We have articulated the next five-year strategy. At least for the next five years, we are going to put most of our capital into downstream expansion, both in aluminium and copper in India. We have reserved the next priority to be maybe another alumina expansion, if it makes sense, because there is still good money to be made in the alumina side. The smelter comes in third in that priority order. Fair to say that in the next five years, if things don't dramatically change, I think as a business, we need to remain flexible if things do structurally change. What I'm hesitant to do is to take two or three quarters of high aluminium prices and then change my strategy, and then by the time the smelter comes up. By the way, Aditya and Mahan were actually launched when aluminum was at INR 2,500, and by the time they came, it has gone down. I think that we will stick with our strategy for the next five years at least. The second part of your question was on the Utkal Alumina 500 Kt coming in. It will take us a while to ramp up, but we will reduce Renukoot, because Renukoot refinery is quite old, and we have cost as well as safety concerns there. Our plan is that roughly half of the expansion we will use internally and the other half we will sell on the third-party market. This is a broad plan we have right now. Okay. Thank you. Very clear. Thank you, Satish Pai, and best of luck. Thank you. The next question is from the line of Sumangal Nevatia from Kotak Securities. Please go ahead. Hi, good evening and thanks for the time. First question is on the copper division. The CCR volume still remains subdued given the macro situation versus the capacity. How do we see that ramping up in coming quarters? Given what we have locked in for TC/RCs for this year, what sort of annualized EBITDA should one expect in FY 2022? On the CC rod, in terms of production and operations, we are having absolutely no issue. We are fully equipped to handle it. It's a question of market demand. Just to tell you a little forward in terms of Q1, we are seeing subdued demand in copper, more subdued than in aluminum. Primary reason also is because of the high LME prices, because at $10,000, our customers and their customers need a lot of working capital to be able to sustain their level of operations. We have seen a drop in demand in the current quarter in copper business. Really speaking, the Indian business is all rod business, and whatever is surplus, we can always export as cathodes. That is as far as rods are concerned. Capacity-wise, we have sufficient. In the last quarter also, the level of 73 Kt is not a bad number actually, but we could go a little higher from there. March was the period when the LME had started going up. The other reason for the demand impact is also COVID, because in COVID periods, we are seeing some of our customers' lines are impacted because of workers falling ill, etc. I think that impact is more transient. It may not last for long because as the country comes back to normalcy, that impact will go away. LME prices will continue to have an impact. In terms of TC/RC, you see about 80%-85% of our sourcing is based on long-term contracts. In most of those, it is linked to the benchmark TC/RC, which is announced sometime in November or December for the next calendar years. That is more or less fixed for the full calendar year 2021. What is available is in terms of the spot TC/RC for the remaining part of the open business. That we do opportunistically in terms of where we get the best prices, where we get the best PCRT for ourselves. Going forward in terms of your guidance, I will say the guidance is divided into two parts. First is quarter one. Quarter one, there are two things which will weigh heavily upon the results. One is the market side impact, as I mentioned to you. The second is we are having a Smelter 3 shutdown in this quarter. This shutdown happens once in four years or so, this kind of a big shutdown. For that reason, we will not have a significant amount of production coming from the concentrate route in this quarter, so this quarter will be impacted for that. The rest of the three quarters should actually be reasonably good because smelters after shutdowns perform very well. The rest of the equipment that we have, whether it is refineries, smelter one or rod mills, they're doing very well actually. Really speaking for the next three quarters, hopefully the demand should come back in the coming quarters because underlying demand is there. The potential for that pent-up demand will remain, most of the projects that the government is going to spend upon in terms of infrastructure, et c, all that will add up to demand coming back. Our hope is last three quarters of this year, Q2, Q3, Q4 should be good. Q1 is likely to have some impact. Understood. That's very good color. Thank you. Second question is on the overall business. There is note to account, note number 14, it says about a court case with regards to its tax issue. Is there any material thing to take note of that? I think, Devinder, you want to handle that? I think the question's around the taxation issue. No, beyond what we have already said in the note, no. We really don't think that at this moment, anything more than the fact that we are still undergoing the legal process is all that we can say. No, from a materiality perspective, not really. All right. That helps. Thanks and all the best. Thank you. Thank you. The next question is on the line of Ashish Jain from Macquarie. Please go ahead. Hi, sir. Good evening. Sir, I had two questions. One on the AC PLI scheme being announced. You had briefly touched upon it during the capital outcomes that you had given. How are we looking at that going ahead? This production-linked incentive scheme, the immediate thing that we are trying to utilize is on the air conditioner fin. The air conditioner guys have got the PLI, and we are benefiting because we provide the AC fin to them. That is the first one. They have got it only on some very specific things that they are putting it on. We are trying to also get it a little bit on bicycles, some amount on the auto, but the immediate benefit of the PLI will be on the AC fin. Sir, something like a copper tube and all, will we be participating in? Oh, yeah. Honestly, that is a future project for us. The inner groove copper tube is a downstream project that we plan to, this year we are going to do the sort of setting out and probably do it next year. That's a very critical technology that we have to get in as well. It is in our plans to make it as a part of that same air conditioner PLI, by the way. The aluminum part is the fin and the copper inner groove tubes is the copper tubes, yes. To be fair, that will take us two to three years to get that manufacturing facility up. Sure. Sir, secondly, on the upstream expansion, now I know this has been touched upon, but what markers will you look at to reassess that even within the next five-year timeframe? Given like last time you had alluded to that you assessed demand in India could be 7 million tons. Incrementally, China is talking of kicking off production at 45 million, 46 million tons. Is there any price marker that you would look at or is this more driven by ESG focus at this point of time? It's a balance, both. I think as Pinakin was saying, if LME stays above $2,300 for a couple of years. In the past it has gone up and then it has come down. We would like to see where the LME will stay. We would like to see the Indian demand, as you said, continue to grow. We need to see at what price will we get the power in India. Ultimately the cost of production of aluminum, 40% is the cost of power. If you take the coal price today in India, to get more than a 12%-13% IRR, you will not get it. Coal price will keep escalating. I think the price of power is also very important. You have to remember that most of these hydropower guys, they get power at the equivalent of INR 2.6 per kWh. They all have very cheap power sources, whether it's Canada, whether it's Norway, whether it's in China. For us to compete on them on a sustainable basis, what we have been trying to tell the government is that the price of power has to be in that INR 2.8- INR 3 per kWh. Sir, at INR 5 MMBtu gas, that number looks achievable? No. That just replaces coal today. That's just from a pure ESG point to reduce the carbon emissions of our existing production. $5 an MMBtu will not give you INR 3 per kWh. Got it, sir. Thank you so much. Thank you. Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr. Satish Pai for closing comments. Yeah. Thank you very much. I think that we are in a very tough year. I just wanted to conclude that majority of the management bandwidth has actually been spent on employees and their safety. I spent more than 50% of my time on COVID related issues. I think that it's all kudos to our employees in the plants who have managed to keep the plants running and the sales guys who have managed to do the sales, and hence we have been able to take benefit of a very favorable macro environment. Really the performance of this quarter or the whole of last year is to all the employees of Hindalco and Novelis. With that, I thank you for your attention and we close the call. Thank you very much and stay safe. Thank you. Ladies and gentlemen, on behalf of Hindalco Industries, that concludes this conference. We thank you all for joining us and you may now disconnect your lines.