MUMBAI, India--(BUSINESS WIRE)--Highlights
-
Record metal production
- Q4 Refined Zinc production up 29% at 194,000 tonnes; and FY 2011 up 23% at 712,000 tonnes
- Silver production in FY 2011 higher at 179,000 kilograms
-
Record Financial Performance
- Q4 Revenue up 28% at Rs. 3,197 Crore and FY 2011 Revenue up 24% at Rs. 9,912 Crore
- Q4 PAT up 43% at Rs. 1,771 Crore and FY 2011 PAT up 21% at Rs. 4,901 Crore
- EPS up from Rs. 9.57 per share to Rs. 11.60 per share in FY 2011
- Significant exploration success – gross addition of 1.4 million tonnes in contained Zinc-Lead metal
- The 1.50 mtpa mill at SK achieved a production run-rate of ~85% of capacity in March 2011
- Strong balance sheet with cash and cash equivalents of around Rs. 15,000 Crore
Mr. Agnivesh Agarwal (Chairman, Hindustan Zinc) – “This year we have focused on enhancing the shareholder value by focusing on faster ramp ups, leading to improvement in growth and profitability. We continue to focus on enhancing value from Silver and are committed to becoming a leading Silver producer globally.”
Mumbai: Hindustan Zinc Limited (“HZL” or the “Company”) today announced its results for the fourth quarter (“Q4”) and full year ended 31 March 2011 (“FY 2011”).
Unaudited Financial Summary
|
(In Rs Crore, except as stated) |
||||||||||||
|
Quarter Ended 31 March |
Change |
Year Ended 31 March |
Change |
|||||||||
| 2011 | 2010 | % | 2011 | 2010 | % | |||||||
| Net Sales/Income from operations | 3,197 | 2,498 | 28% | 9,912 | 8,017 | 24% | ||||||
| Cash Profit (PBDT) | 2,258 | 1,655 | 36% | 6,434 | 5,348 | 20% | ||||||
| Profit After Taxes | 1,771 | 1,239 | 43% | 4,901 | 4,041 | 21% | ||||||
| Earnings Per Share (Rs.)(1) | 4.19 | 2.93 | 43% | 11.60 | 9.57 | 21% | ||||||
| Production – Mined Metal (Tonnes) | ||||||||||||
| Zinc & Lead | 231,039 | 193,532 | 19% | 840,053 | 768,620 | 9% | ||||||
| Production – Refined Metal (Tonnes) | ||||||||||||
| Zinc | 193,459 | 150,309 | 29% | 712,471 | 578,411 | 23% | ||||||
|
Lead(2) |
17,448
|
19,946
|
(13%)
|
63,192
|
71,627
|
(12%)
|
||||||
|
Silver (in Kgs.)(3) |
49,804 |
51,409 |
(3%) |
179,079 |
176,381 |
2% |
||||||
(1) After considering Split and Bonus issue
(2) Including captive consumption of 1,340 tonnes in Q4 FY2011 vs. 1,601 tonnes in Q4 FY2010, and 5,898 tonnes in FY2011 vs. 7,308 tonnes in FY2010.
(3) Including captive consumption of 7,016 Kgs. in Q4 FY2011 vs. 8,342 Kgs. in Q4 FY2010, and 30,997 Kgs. in FY2011 vs. 37,831 Kgs. in FY2010.
Operational Performance
During Q4 and FY 2011, the Company achieved its highest ever mined metal production of 231,000 tonnes and 840,000 tonnes, up 19% and 9% respectively, compared with the corresponding prior periods. The increase in production was primarily on account of higher contribution from Rampura Agucha and Sindesar Khurd mines.
Refined Zinc metal production, during Q4 and FY 2011, was highest ever at 194,000 tonnes and 712,000 tonnes, up 29% and 23% respectively compared with the corresponding prior periods. The increase in production is largely attributable to increased contribution from Dariba Hydro Zinc smelter, which contributed around 46,000 tonnes during Q4 and 165,000 tonnes during FY 2011.
Refined Lead metal production was 13% lower at 18,000 tonnes in Q4 and 12% lower at 63,000 tonnes in FY 2011, compared with the corresponding prior periods.
Refined Silver production of 50,000 kilograms in Q4 was largely in line with the corresponding prior quarter. Silver production for FY 2011 was higher at 179,000 kilograms.
During Q4, the company sold 30,000 dry metric tonnes of surplus Zinc concentrate and 18,000 dry metric tonnes of surplus Lead concentrate with high silver content, taking the full year concentrate sales to 66,000 dry metric tonnes for Zinc concentrate and 39,000 dry metric tonnes for Lead concentrate.
Financial Performance
Revenues for Q4 and FY 2011 were highest ever at Rs. 3,197 Crore and Rs. 9,912 Crore respectively, an increase of 28% and 24%, compared with the corresponding prior periods. The Company also achieved record net profits of Rs. 1,771 Crore and Rs. 4,901 Crore in Q4 and FY 2011, up 43% and 21% respectively, compared with the corresponding prior periods. The increase was primarily on account of increased volumes, operational efficiencies and improved LME prices.
Silver realization for Q4 and FY 2011 was Rs. 218 Crore and Rs. 544 Crore respectively, up 98% and 58%, compared with the corresponding prior period.
The Zinc metal cost, without royalty, during the quarter increased by 5% to Rs. 35,500 per MT [$ 784], compared with the corresponding prior quarter. The unit cost for FY 2011 was higher by 11% at Rs. 36,800 per MT [$ 808], compared with the previous year. The increase in costs was on account of significant increase in the commodity prices, impact of increase in Gratuity ceiling and higher stripping costs at Rampura Agucha.
During Q4, the average Zinc and Lead LME price per tonne increased to $2,393 and $2,605, compared with $2,288 and $2,219 respectively, in the corresponding prior period. For FY 2011, the average Zinc and Lead LME price per tonne increased to $2,185 and $2,244, compared with $1,936 and $1,990 in the corresponding prior period.
During Q4 FY 2011, the average Silver CSP (Cash Settlement Price) per LBMA (London Bullion Market Association) increased to $31.9/oz from $ 16.9/oz in the corresponding prior quarter. For FY 2011, the average Silver CSP increased to $23.9/oz from $ 15.8/oz in the corresponding prior period.
Expansion Projects
The new 1.50 mtpa mill at Silver-rich SK Mine is ramping up well and is expected to achieve its rated capacity in FY 2012. With the accelerated capacity ramp up at SK mine, the Company is poised to exit FY 2012 with Silver production capacity of 500 tonnes (16 million oz). Commissioning of the 100 ktpa Lead smelter at Dariba is expected to be completed in Q1 FY2012, post which, the total Zinc-Lead metal production capacity will increase to 1,064 ktpa.
During the year, the Company announced 150 MW expansion in wind power generation capacity. During Q4, the Company commissioned 48 MW of the 150 MW wind power plant. The remaining 102 MW is expected to be commissioned in FY 2012. Post the expansion, the Company’s wind power generation capacity will increase to 273 MW.
With the commissioning of 160 MW (80X2) Captive power generation capacity at Dariba during the year, the total thermal power generation capacity has increased to 474 MW.
Exploration
Ongoing exploration activities at HZL have yielded significant success with an increase of 22.1 million tonnes to the reserves and resources, prior to a depletion of 7.5 million tonnes in FY 2011. Contained Zinc-Lead metal has increased by 1.4 million tonnes, prior to a depletion of 0.84 million tonnes during the same period. Total reserves and resources at 31 March 2011 were 313.2 million tonnes containing 34.7 million tonnes of Zinc-Lead metal and 885 million ounces of Silver.
A highlight of our exploration success has been additions at Rajpura Dariba belt (covering Sindesar Khurd and Rajpura Dariba) and Zawar, where we have now established a reserve and resource base of 183.2 million tonnes (164.2 million tonnes in FY 2009-10).
Dividend
The board of directors has recommended a dividend of 50%, i.e., Rs. 1 per equity share of Rs. 2 /- each for the current year. The dividend is payable on increased share capital following 1:1 bonus issue in March 2011.
Liquidity and investment
The Company follows a conservative Investment Policy and invests in high quality Debt instruments in Mutual Fund and Fixed Deposit with Bank. As at 31 March 2011, the Company had cash and cash equivalents of Rs. 14,965 Crore, including Rs. 9,332 Crore invested in debt mutual funds and Rs. 5,555 Crore 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.