|
Hindustan
Zinc standalone net sales increased 63.73% to Rs 6,531.00 crore in Q1FY22
compared to Q1FY21 led by higher metal & silver volumes, higher zinc, lead
& silver prices. Zinc sales volume increased 15% YoY and lead by 9% YoY in
line with higher production and robust demand.
Sales of Zinc, Lead and Silver segment rose 64.15% to Rs 6,323.00 crore
(accounting for 99.14% of total sales).
Sales of Wind Energy segment has gone up 19.57% to Rs 55.00 crore
(accounting for 0.86% of total sales).
Sequentially,
revenue was down 5%, primarily driven by lower zinc, lead and silver volumes,
lower metal premium, partly offset by higher zinc & lead LME prices and
rupee depreciation. Zinc volume was down 5% and lead & silver volumes were
both down 21% each. This was mainly due to lack of operator availability in
view of second wave of covid-19. Zinc LME prices were sequentially up 6%, while
lead prices were up 5%.
Zinc
cost of production before royalty (COP) during the quarter was $1,070 (Rs.
78,952) per ton, higher by 5% y-o-y, (up 3% in INR terms and up 13%
sequentially in USD terms (up 14% in INR terms). The increase in COP is
primarily due to surge in input commodity prices.
Sequentially
there was an increase in coal and diesel prices, cement prices as well as
higher power costs coupled with lower volumes leading to an upward pressure on
COP which was only partly offset by higher sulphuric acid credits and lower met
coal cost.
Operating
profit margin has jumped from 39.51% to 54.48%, leading to 125.76% rise in
operating profit to Rs 3,558.00 crore on account of higher Zinc Lead LME and
increase in Silver prices as well as higher metal premiums. Employee cost decreased from 6.15% to
2.86%. Other expenses fell from 52.62%
to 41.26%. Selling and administration
expenses fell from 12.11% to 11.37%.
Power and Oil fuel cost fell from 10.15% to 7.54%.
Other
income fell 48.98% to Rs 349 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 170.66% to Rs 2,934.00 crore.
PBIT of Zinc, Lead and Silver segment rose 174.48% to Rs 2,893.00 crore
(accounting for 98.60% of total PBIT).
PBIT of Wind Energy segment rose 36.67% to Rs 41.00 crore (accounting
for 1.40% of total PBIT).
PBIT
margin of Zinc, Lead and Silver segment rose from 27.36% to 45.75%. PBIT margin of Wind Energy segment rose from
65.22% to 74.55%. Overall PBIT margin
rose from 27.81% to 46.00%.
Provision
for interest up 76.92% to Rs 92 crore.
Provision for depreciation rose 20.96% to Rs 658 crore.
Profit
before tax grew 89.72% to Rs 3,157.00 crore.
Provision for tax was expense of Rs 1040 crore, compared to Rs 305
crore. Effective tax rate was 34.40%
compared to 18.33%.
Profit
after tax rose 45.92% to Rs 1,983.00 crore mainly driven by recovery in metal
prices and higher volumes.
Commenting on the Q1
performance, Mr Arun Misra, CEO, said:
“We delivered highest-ever Q1 ore, refined metal & silver production. After
exiting at a run-rate of 1.2 mtpa in fiscal year 2021, we maintained the
momentum of production in Q1 with Year-on-Year growth of 15% in ore, 17% in
refined metal & 37% in silver inspite of the spurt in covid cases in the
second wave of the pandemic. Besides good operational performance, I am happy
to inform that Hindustan Zinc has received ‘Most Sustainable Company in the
Mining Industry – 2021’ award from World Finance Sustainability Award 2021.
Also, our Rampura Agucha mine has won CII’s ‘Best Application & Use of
Renewable Energy’ award in the 5th Edition CII National Energy Efficiency
circle -2021”
Mr Vinaya Jain, Sr. VP
& Head Finance, said:
“We delivered our best ever Q1 Revenue, EBITDA and Profit after tax (PAT). Our
strong balance sheet enables us to make proactive investments in operations and
digitalization that will further enhance our mining output. We do recognize the
headwinds from rising input commodity prices and are doubling our efforts to
address them through long lasting structural cost initiatives. Additionally, we
remain committed to our ESG goals and will continue to deploy necessary
resources towards them. Sharp focus on cost leadership and profitability while
building a sustainable business, will ensure long term value to all
stakeholders.”
Operational Performance
Mined
metal production for the quarter was up 9% y-o-y to 221kt on account of higher
ore production, partly offset by lower overall grade. Sequentially, MIC
production was down 23% on account of lower ore production and overall grades.
Integrated
metal production was 236kt for the quarter, up 17% y-o-y in line with higher
mined metal availability. Sequentially it was down 8% in-line with lower ore
production due to lack of operator availability at the mines in view of second
wave of COVID-19.
Integrated
zinc production was 188kt, up 20% y-o-y and down 4% sequentially. Integrated
lead production was 48kt, up 9% y-o-y and down 21% sequentially.
Integrated
silver production was 161tons, up 37% from a year ago in line with higher lead
production, partly offset by lower grades at Sindesar Khurd (SK) mine, while it
was down 21% sequentially primarily in-line with lower lead production.
Full year results
analysis
Net
sales (including other operating income) of Hindustan Zinc has increased 21.92%
to Rs 22,629.00 crore. Sales of Zinc,
Lead and Silver segment rose 20.78% to Rs 21,932.00 crore (accounting for
99.37% of total sales). Sales of Wind
Energy segment has gone down 19.65% to Rs 139.00 crore (accounting for 0.63% of
total sales).
Operating
profit margin has jumped from 47.66% to 51.58%, leading to 31.93% rise in
operating profit to Rs 11,672.00 crore.
Employee cost decreased from 3.65% to 3.39%. Other expenses fell from 49.42% to
44.48%. Selling and administration
expenses fell from 12.48% to 12.32%.
Power and Oil fuel cost fell from 9.04% to 7.74%.
Other
income fell 5.95% to Rs 1819 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 39.93% to Rs 9,329.00 crore. PBIT
of Zinc, Lead and Silver segment rose 41.06% to Rs 9,251.00 crore (accounting
for 99.16% of total PBIT). PBIT of Wind
Energy segment fell 28.44% to Rs 78.00 crore (accounting for 0.84% of total
PBIT).
PBIT
margin of Zinc, Lead and Silver segment rose from 36.11% to 42.18%. PBIT margin of Wind Energy segment fell from
63.01% to 56.12%. Overall PBIT margin
rose from 36.37% to 42.27%.
Provision
for interest up 244.64% to Rs 386 crore.
Loan funds rose to Rs 6,473.00 crore as of 31 March 2021 from Rs 611.00
crore as of 31 March 2020. Inventories
declined from Rs 1,835.00 crore as of 31 March 2020 to Rs 1,425.00 crore as of
31 March 2021. Sundry debtors were
higher at Rs 406.00 crore as of 31 March 2021 compared to Rs 379.00 crore as of
31 March 2020. Cash and bank balance
rose to Rs 9,376.00 crore as of 31 March 2021 from Rs 1,918.00 crore as of 31
March 2020. Investments declined from Rs
20,329.00 crore as of 31 March 2020 to Rs 12,957.00 crore as of 31 March
2021.
Provision
for depreciation rose 11.06% to Rs 2531 crore.
Fixed assets declined from Rs 18,706.00 crore as of 31 March 2020 to Rs
18,369.00 crore as of 31 March 2021.
Intangible assets increased from Rs 252.00 crore to Rs 361.00
crore.
Profit
before tax grew 26.03% to Rs 10,574.00 crore.
Provision for tax was expense of Rs 2594 crore, compared to Rs 1585
crore. Effective tax rate was 24.53%
compared to 18.89%.
Profit
after tax rose 17.27% to Rs 7,980.00 crore.
Promoters’
stake was 64.92% as of 31 March 2021 compared to 64.92% as of 31 March 2020
. Promoters pledged stake was 22.83% as
of 31 March 2021
Cash
flow from operating activities increased to Rs 10,567.00 crore for year ended
March 2021 from Rs 6,621.00 crore for year ended March 2020. Cash flow used in acquiring fixed assets
during the year ended March 2021 stood at Rs 2,481.00 crore, compared to Rs
3,637.00 crore during the year ended March 2020.
The
scrip is currently trading at Rs 327
|
Hindustan Zinc : Standalone Results
|
|
Particulars
|
2106 (03)
|
2006 (03)
|
Var.(%)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Net
Sales
|
6,531
|
3,989
|
64
|
22,629
|
18,561
|
22
|
|
OPM
(%)
|
54.5
|
39.5
|
|
51.6
|
47.7
|
|
|
OP
|
3,558
|
1,576
|
126
|
11,672
|
8,847
|
32
|
|
Other
Inc.
|
349
|
684
|
-49
|
1,819
|
1,934
|
-6
|
|
PBIDT
|
3,907
|
2,260
|
73
|
13,491
|
10,781
|
25
|
|
Interest
|
92
|
52
|
77
|
386
|
112
|
245
|
|
PBDT
|
3,815
|
2,208
|
73
|
13,105
|
10,669
|
23
|
|
Depreciation
|
658
|
544
|
21
|
2,531
|
2,279
|
11
|
|
PBT
|
3,157
|
1,664
|
90
|
10,574
|
8,390
|
26
|
|
PBT
before EO
|
3,157
|
1,664
|
90
|
10,574
|
8,390
|
26
|
|
EO
Income
|
-134
|
0
|
-
|
0
|
0
|
-
|
|
PBT
after EO
|
3,023
|
1,664
|
82
|
10,574
|
8,390
|
26
|
|
Taxation
|
1,040
|
305
|
241
|
2,594
|
1,585
|
64
|
|
PAT
|
1,983
|
1,359
|
46
|
7,980
|
6,805
|
17
|
|
EPS
(Rs)*
|
#
|
#
|
|
18.9
|
16.1
|
|
|
Notes
|
|
*
EPS is on current equity of Rs 845.06 crore, Face value of Rs 2, Excluding
extraordinary items.
|
|
#
EPS is not annualised
|
|
bps
: Basis points
|
|
EO
: Extraordinary items
|
|
Figures
in Rs crore
|
|
Source:
Capitaline Corporate Database
|
|
Hindustan Zinc : Standalone Segment Results
|
|
|
% of (Total)
|
2106 (03)
|
2006 (03)
|
Var.(%)
|
% of (Total)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Sales
|
|
Zinc,
Lead, Others
|
80
|
5,217
|
3,207
|
63
|
78
|
17,550
|
15,715.00
|
12
|
|
Silver
Metal
|
17
|
1,106
|
645
|
71
|
19
|
4,382
|
2444
|
79
|
|
Wind
Energy
|
1
|
55
|
46
|
20
|
1
|
139
|
173
|
-20
|
|
Revenue
from operations
|
98
|
6,378
|
3,898
|
64
|
98
|
22,071
|
18,332
|
20
|
|
Other
Operating Income
|
2
|
153
|
91
|
68
|
2
|
558
|
229
|
144
|
|
Total
Operating Income
|
100
|
6,531
|
3,989
|
64
|
100
|
22,629
|
18,561
|
22
|
|
PBIT
|
|
Zinc,
Lead, Others
|
65
|
1,898
|
522
|
264
|
58
|
5,400
|
4431
|
22
|
|
Silver
Metal
|
34
|
995
|
532
|
87
|
41
|
3,851
|
2127
|
81
|
|
Wind
Energy
|
1
|
41
|
30
|
37
|
1
|
78
|
109.00
|
-28
|
|
Total
PBIT
|
100
|
2,934
|
1,084
|
171
|
100
|
9,329
|
6,667
|
40
|
|
Less
: Interest
|
|
92
|
52
|
77
|
|
386
|
112
|
245
|
|
Add:
Other un-allcoable
|
|
181
|
632
|
-71
|
|
1,631
|
1,835.00
|
-11
|
|
PBT
|
|
3,023
|
1,664
|
82
|
|
10,574
|
8,390
|
26
|
|