Hindustan Zinc Limited (“HZL” or the “Company”) today announced
its results for the first quarter (“Q1”) ended 30 June 2010.
Unaudited Financial Summary
(in Rs crore, except as
stated)
Quarter ended 30 June
Change
2010 2009
%
Net Sales/Income from operations
1,951 1,512
29.0 % Profit before depreciation & tax (PBDT)
1,174 959
22.4 % Profit After Taxes
891 719 23.9 % Earnings Per Share
(Rs.)
21.09 17.01
Production – Mined Metal (Tonnes)
Zinc and Lead
181,930 182,842 (0.5 %)
Production –
Refined Metal (Tonnes) Zinc
164,519 139,315 18.1 % Lead1
15,310 17,530 (12.7 %) Silver (in kgs)2
43,309
41,460 4.5 %
(1) Including captive consumption of 1,166 tonnes in Q1 FY2011
vs 2,312 tonnes in Q1 FY2010.
(2) Including captive consumption of 6,133Kgs in Q1 FY 2011 vs
11,933 Kgs in Q1 FY 2010
Operational
Performance
During Q1, the Company produced 182,000 tonnes of Mined metal,
inline with the production in the corresponding prior quarter.
During the quarter, production from the Rampura Agucha mine was
impacted by lower grades and repair and maintenance of one of the
mills.
Refined zinc production during the quarter was 165,000 tonnes,
an increase of 18% compared with the corresponding prior quarter.
The 210 ktpa Zinc smelter at Rajpura Dariba commissioned in Q4
FY2010 is ramping up well and contributed 33,000 tonnes in Q1. The
production at the existing plants was impacted due to a temporary
water shortage, which is expected to normalize with the onset of
monsoon.
Refined silver production during Q1 was 43,000 kilograms, an
increase of 5%, compared with the corresponding prior quarter. The
increase in production was primarily on account of higher silver
content in the mined ore and improved plant efficiencies.
Financial
Performance
Revenues and net profit for Q1 were Rs 1,951 crore and Rs 891
crore, an increase of 29% and 24% respectively, compared with the
corresponding prior quarter. The positive impact of improved LME
prices and improved by-product realization on profitability was
partly offset by the impact of the additional gratuity provisions
due to change in the limit of salary in the payment of Gratuity
Act, full impact of long term settlement of wage agreement, higher
stripping cost at mines and increase in coal, and coke costs.
During Q1, average zinc and lead LME prices were $2,018 per
tonne and $1,944 per tonne respectively, compared with $1,476 per
tonne and $1,506 per tonne, in the corresponding prior quarter.
Expansion
Projects
Construction activity at the 100 ktpa lead smelter at Rajpura
Dariba is progressing as planned, and is on schedule for completion
by Q2 FY2011. Of the 160MW captive power plant, one unit of 80 MW
CPP was synchronized in June 2010 and the second unit is expected
to be synchronized in September 2010.
Primary mine development activity at Sindesar Khurd mine project
is on schedule, with production expected to commence from Q2 FY
2011
Liquidity and
investment
Company follows conservative Investment Policy and invests in
high quality Debt instruments in Mutual Fund and Fixed Deposit with
Bank. As on 30 June, 2010, the Company had cash and cash
equivalents of Rs. 12,323 crore, out of which Rs. 7,048 crore was
invested in debt mutual funds and Rs. 5,275 crore were in fixed
deposits with Banks.
About Hindustan Zinc
HZL is India’s largest integrated producer of zinc & lead
and is among the world’s leading integrated producers. It has a
metal production capacity of 964,000 tonnes per annum with its
smelter operations situated in Chanderiya, Debari, Dariba and
Visakhapatnam. HZL has lead-zinc mines in Rampura Agucha, Sindesar
Khurd, Rajpura Dariba and Zawar. HZL has around 7,000 employees.
The company is a subsidiary of the NYSE listed, Sterlite Industries
(India) Limited (NYSE:SLT) and London listed FTSE 100 diversified
metals and mining major, Vedanta Resources plc.
Disclaimer
This press release contains “forward-looking statements” – that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as “expects,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “should” or “will.” Forward–looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behavior of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
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