Hindustan Zinc Limited (“HZL” or the “Company”) today announced
results for the second quarter (“Q2”) and Half Year ended 30
September 2012.
Q2 HIGHLIGHTS
Operational
- Mined metal production in line with the
mine plan
- Refined Lead production up by 60%
- Refined Silver production up by
86%
- Greenfield Kayar mine strikes
developmental ore, ahead of schedule
Financial Performance
- Net Revenue up 9% to Rs. 2,822
Crore
- Net Profit up 15% to Rs. 1,540
Crore
Interim Dividend
- Interim dividend of Rs 1.60 per
share
“Our results show our ability to deliver consistent performance
from our best-in-class assets. We will continue our growth story in
future and maintain our cost leadership to deliver industry leading
performance”, said Mr. Agnivesh Agarwal, Chairman of Hindustan
Zinc.
Unaudited Financial Summary
(In Rs Crore, except as stated)
Quarter Ended
Half Year Ended 30th September 30th September
2012 2011 Change
2012
2011 Change
Net Sales/Income from Operations
Zinc
1,843 2,034 (9%)
3,659
4,140 (12%) Lead
341 174 96%
683 418 63% Silver
449 247 82%
837 566 48% Others
189 138 37%
356 291 22%
Total 2,822 2,593 9%
5,535
5,415 2%
Cash Profit (Net Profit + Depreciation)
1,714 1,491 15%
3,469 3,120 11%
Profit
After Taxes 1,540 1,345 15%
3,121 2,840 10%
Earnings Per Share (Rs.) 3.64 3.18 15%
7.39 6.72 10%
Production - Mined Metal ('000
tonnes) Zinc & Lead
190 210 (9%)
377 398 (5%)
Production - Refined Metal ('000 tonnes) Total Zinc
163 185 (12%)
324 378 (14%) - Fully integrated Zinc
153 185 (17%)
310 376 (17%) Total Lead1
27 17
60%
58 33 75% - Fully integrated Lead
24 17 40%
53 33 59% Total Silver2 (tonnes)
92 49 86%
174
96 81% - Fully integrated Silver
80 49 63%
160 96 66%
Zinc LME (USD/MT)
1,885 2,224 (15%)
1,906
2,236 (15%) Lead LME (USD/MT)
1,975 2,459 (20%)
1,974
2,503 (21%) Silver LBMA (USD/oz)
29.8 38.8 (23%)
29.6
38.4 (23%) USD-INR
55.24 45.76 21%
54.74 45.26 21%
(1) Including captive consumption of 1,435 tonnes and 3,076
tonnes in Q2 and half-year, as compared with 1,348 tonnes and 2,739
tonnes in corresponding prior periods, respectively.
(2) Including captive consumption of 7,523 Kgs and 16,166 Kgs in
Q2 and half-year, as compared with 7,193 Kgs and 14,389 Kgs in
corresponding prior periods, respectively.
(3) Silver occurs in Lead & Zinc ore and is recovered in the
smelting and silver-refining processes
Operational Performance
Mined metal production during H1 is in line with our mine plan.
The production is expected to progressively increase during Q3 and
Q4, such that H2 should more than make up the H1 shortfall. We
expect the mined metal production for the full year to be slightly
higher than the previous year.
Mined metal production was 190kt in Q2 and 377kt in H1, as
compared with 210kt and 398kt in the corresponding prior periods.
In line with the mined metal production, integrated production of
refined zinc was 153kt in Q2 and 310kt in H1. Integrated production
of refined lead was 24kt in Q2 and 53kt in H1.
Integrated refined Silver production was 80 tonnes in Q2 and 160
tonnes in H1, up 63% and 66% respectively, driven by the ramp-up of
SK mine and Dariba lead smelter.
Financial Performance
Revenues were Rs. 2,822 Crore in Q2 and Rs. 5,535 Crore in H1,
up 9% and 2% respectively compared to the corresponding prior
periods. Net profit was up 15% in Q2 at Rs. 1,540 Crore and up 10%
in H1 at Rs. 3,121 Crore, compared to the corresponding prior
period. During Q2 and H1 of FY2013, the positive impact of higher
Lead-Silver volumes and Rupee depreciation was offset by lower zinc
volumes, lower prices of Zinc, Lead and Silver.
The Zinc COP, excluding royalty, during the quarter was Rs.
46,750 per MT ($844), compared to Rs 38,800 ($847) in the
corresponding prior quarter. The increase was primarily on account
of higher excavation cost and Rupee depreciation.
Interim Dividend
HZL’s Board of Directors has recommended an interim dividend of
80% i.e. Rs. 1.60 per share on equity share of Rs 2.00 each, as
compared to an interim dividend of Rs 1.50 per share last year. The
record date for the payment of interim dividend is 26th October
2012.
Expansion Projects
At the greenfield Kayar mine, a milestone of development ore
production was achieved towards the end of the quarter. Both
Rampura Agucha and Kayar underground mines are progressing well and
will start commercial production in FY2014.
Liquidity and investment
As at 30 September 2012, the Company had cash and cash
equivalents of Rs. 19,136 Crore. This includes Rs. 10,177 Crore in
debt mutual funds, Rs. 1,663 in bonds and Rs. 7,275 Crore in fixed
deposits with banks. The Company follows a conservative investment
policy and invests in high quality debt instruments. Our investment
portfolio is rated “very good” by CRISIL – the highest rating.
About Hindustan Zinc
HZL is one of the world’s largest integrated producers of
Zinc-Lead and a leading producer of Silver globally. It has a metal
production capacity of over one million tonnes per annum with its
key Lead-Zinc mines in Rampura Agucha and Sindesar Khurd; and
modern smelting complexes in Chanderiya and Dariba. HZL is focused
on growth and long-term term sustainability on the back of its
high-quality assets, long mine life of over 25 years and low cost
base. 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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