|
Hindustan
Zinc consolidated net sales declined 22.42% to Rs 7282 crore in Q1FY24 compared
to Q1FY23on account of lower zinc & lead LME, lower lead volumes and
differential strategic hedging impact partly offset by higher zinc and silver
volumes, improved silver prices and favourable exchange rates. Sequentially,
revenue was down by 14.4% on account of lower zinc LME, lower metal &
silver volumes partly offset by improved silver prices.
Sales
of Zinc,Leadand Silver segment has gone down 23.03% to Rs 7,062.00 crore
(accounting for 99.31% of total sales).
Sales of Wind Energy segment has gone down 19.67% to Rs 49.00 crore
(accounting for 0.69% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 43.27% to
Rs 2,600.00 crore. PBIT of Zinc,Leadand
Silver segment fell 43.39% to Rs 2,570.00 crore (accounting for 98.85% of total
PBIT). PBIT of Wind Energy segment fell
30.23% to Rs 30.00 crore (accounting for 1.15% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 49.48% to 36.39%. PBIT margin of Wind Energy segment fell from
70.49% to 61.22%. Overall PBIT margin
fell from 49.62% to 36.56%.
Operating
profit margin has declined from 54.72% to 45.96%, leading to 34.85% decline in
operating profit to Rs 3,347.00 crore mainly on account of lower zinc &
lead LME partly offset by lower costs and better silver prices.. Employee cost increased from 2.25% to
2.68%. Other expenses rose from 42.52%
to 50.45%. Selling and administration
expenses rose from 11.44% to 11.75%.
Power and Oil fuel cost rose from 9.49% to 10.90%.
Zinc
cost of production before royalty (COP) for the quarter was US$1,194 (Rs
98,103) per tonne, lower by 5.6% (0.7% higher in INR terms) y-o-y and lower by
1.7% (1.7% lower in INR terms) sequentially. Cost improvement is majorly on
account of softened coal and input commodity prices, better domestic coal
(linkage) availability, further supported by better grades and operational
efficiencies year on year
Other
income fell 9.03% to Rs 282 crore. PBIDT
fell 33.38% to Rs 3629 crore. Provision
for interest rose 395.45% to Rs 218 crore.
PBDT
fell 36.87% to Rs 3411 crore. Provision
for depreciation rose 9.58% to Rs 801 crore.
Profit
before tax down 44.14% to Rs 2,610.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 646
crore, compared to Rs 1580 crore.
Effective tax rate was 24.75% compared to 33.82%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 36.48% to Rs
1,964.00 crore primarily on account of lower EBITDA partly offset by lower tax
expense.
Promoters’
stake was 64.92% as of 30 June 2023 ,compared to 64.92% as of 30 June 2022
. Promoters pledged stake was 99.37% as
of 30 June 2023 ,compared to 86.05% as of 30 June 2022.
Commenting on the
performance, Mr. Arun Misra, CEO, said:
“Hindustan Zinc has once again demonstrated its ability to deliver in a highly
volatile external environment by accomplishing highest ever first quarter mined
metal and silver production and maintaining a consistent run-rate of refined
metal production. We strongly believe that in a cyclical commodity business,
protecting margins is fundamental, hence our strong focus lies on optimising
cost and enhancing volumes. The cornerstone of Hindustan Zinc’s strategic
priorities is to maximise shareholders return, and delivering as per commitment
is an accurate reflection of the same. Our strategic development projects are
also progressing well and now on track, while we continue to progress on our
sustainability journey towards net-zero by 2050. I am also happy to share that
Hindustan Zinc has been certified as a ‘Great Place to Work’ for the fifth
consecutive year. With such endorsements at the backdrop, we strive to grow
safely, responsibly, and sustainably.”
Mr. Sandeep Modi, CFO,
said: “Amidst the
macro-economic headwinds moderating the base metal prices, Hindustan Zinc had a
positive start of the year with a strong operational performance, attributable
to consistent cost optimisation efforts and operational efficiencies, thereby
protecting margins. With a first-time sequential drop in first quarter cost of
production in the recent past, we continue to maintain our cost leadership in
the global zinc cost curve. As we advance forward in this transformational
year, we continue to focus on our ongoing development projects, automation
& digitalisation investments and sustainable operations. I am happy to
share that Hindustan Zinc has been recognised with ‘Masters of Risk Jury Award
in Metals & Mining and ESG Specialization’ at CNBCICICI Lombard India Risk
Management Awards 2023.
Operational Performance
Highest-ever
first quarter mined metal production at 257 kt, an increase of 2.1% y-o-y on
account of higher ore production largely at Rampura Agucha & Kayad mines
supported by improved mined metal grades and better mill recovery. In line with
mine preparation activities being carried out every year in first quarter, MIC
production was 14.6% lower sequentially.
Refined
metal production was 260 kt for the quarter, flat y-o-y and down 4%
sequentially in line with plant availability. Integrated zinc production was
209 kt, up 1.4% y-o-y and down 2.9% sequentially. Integrated lead production
for the quarter was down 5.7% y-o-y and 6.3% sequentially at 51 kt, in line
with plant availability.
Saleable
silver production for the quarter was 179 MT, up 1.2% y-o-y and down 1.6%
sequentially in line with lead metal production and higher WIP depletion.
Full year results
analysis
Net
sales (including other operating income) of Hindustan Zinc has increased 15.82%
to Rs 34098 crore led by improved zinc LME, metal & silver volumes, gains
from strategic hedging and favourable exchange rates while being partially
offset by lower lead & silver prices.
Sales of Zinc,Leadand Silver segment has gone up 15.71% to Rs 33,120.00
crore (accounting for 99.54% of total sales).
Sales of Wind Energy segment has gone down 8.43% to Rs 152.00 crore
(accounting for 0.46% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 7.24% to Rs
14,483.00 crore. PBIT of Zinc,Leadand
Silver segment rose 7.33% to Rs 14,388.00 crore (accounting for 99.34% of total
PBIT). PBIT of Wind Energy segment fell
5.00% to Rs 95.00 crore (accounting for 0.66% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 46.83% to 43.44%. PBIT margin of Wind Energy segment rose from
60.24% to 62.50%. Overall PBIT margin
fell from 46.91% to 43.53%.
Operating
profit margin has declined from 55.11% to 51.34%, leading to 7.90% rise in
operating profit to Rs 17,506.00 crore.
Employee cost increased from 2.42% to 2.47%. Other expenses rose from 42.99% to 46.41%. Selling and administration expenses fell
from 12.34% to 11.88%. Power and Oil
fuel cost rose from 8.25% to 10.84%.
Other
income rose 13.40% to Rs 1379 crore.
PBIDT rose 8.28% to Rs 18885 crore.
Provision for interest rose 14.83% to Rs 333 crore. Loan funds rose to Rs 11,881.00 crore as of
31 March 2023 from Rs 2,844.00 crore as of 31 March 2022. Inventories declined from Rs 1,953.00 crore
as of 31 March 2022 to Rs 1,862.00 crore as of 31 March 2023. Sundry debtors were lower at Rs 380.00 crore
as of 31 March 2023 compared to Rs 716.00 crore as of 31 March 2022. Cash and bank balance declined from Rs
5,763.00 crore as of 31 March 2022 to Rs 1,412.00 crore as of 31 March
2023. Investments declined from Rs
15,052.00 crore as of 31 March 2022 to Rs 10,107.00 crore as of 31 March 2023.
PBDT
rose 8.17% to Rs 18552 crore. Provision
for depreciation rose 11.90% to Rs 3264 crore.
Fixed assets increased to Rs 19,767.00 crore as of 31 March 2023 from Rs
19,240.00 crore as of 31 March 2022.
Intangible assets declined from Rs 231.00 crore to Rs 92.00 crore.
Profit
before tax grew 7.40% to Rs 15,288.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 4777
crore, compared to Rs 4471 crore.
Effective tax rate was 31.25% compared to 31.71%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 9.16% to Rs
10,511.00 crore.
Equity
capital stood at Rs 845.00 crore as of 31 March 2023 to Rs 845.00 crore as of
31 March 2022. Per share face Value
remained same at Rs 2.00.
Promoters’
stake was 64.92% as of 31 March 2023 ,compared to 64.92% as of 31 March 2022
. Promoters pledged stake was 87.59% as
of 31 March 2023 ,compared to 86.05% as of 31 March 2022 .
Cash
flow from operating activities increased to Rs 15,129.00 crore for year ended March
2023 from Rs 12,691.00 crore for year ended March 2022. Cash flow used in acquiring fixed assets
during the year ended March 2023 stood at Rs 3,561.00 crore, compared to Rs
2,998.00 crore during the year ended March 2022.
The
scrip is currently trading at Rs 318
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Hindustan Zinc : Consolidated
Results
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|
Particulars
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2306 (03)
|
2206 (03)
|
Var.(%)
|
2303 (12)
|
2203 (12)
|
Var.(%)
|
|
Net Sales
|
7,282
|
9,387
|
-22
|
34,098
|
29,440
|
16
|
|
OPM (%)
|
46.0
|
54.7
|
|
51.3
|
55.1
|
|
|
OP
|
3,347
|
5,137
|
-35
|
17,506
|
16,225
|
8
|
|
Other Inc.
|
282
|
310
|
-9
|
1,379
|
1,216
|
13
|
|
PBIDT
|
3,629
|
5,447
|
-33
|
18,885
|
17,441
|
8
|
|
Interest
|
218
|
44
|
395
|
333
|
290
|
15
|
|
PBDT
|
3,411
|
5,403
|
-37
|
18,552
|
17,151
|
8
|
|
Depreciation
|
801
|
731
|
10
|
3,264
|
2,917
|
12
|
|
PBT
|
2,610
|
4,672
|
-44
|
15,288
|
14,234
|
7
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
2,610
|
4,672
|
-44
|
15,288
|
14,234
|
7
|
|
EO Income
|
0
|
0
|
-
|
0
|
-134
|
-
|
|
PBT after EO
|
2,610
|
4,672
|
-44
|
15,288
|
14,100
|
8
|
|
Taxation
|
646
|
1,580
|
-59
|
4,777
|
4,471
|
7
|
|
PAT
|
1,964
|
3,092
|
-36
|
10,511
|
9,629
|
9
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
1,964
|
3,092
|
-36
|
10,511
|
9,629
|
9
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EPS (Rs)*
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#
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#
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24.9
|
23.0
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Notes
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* EPS is on current equity of Rs 845.06 crore, Face value of Rs
2, Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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EO : Extraordinary items
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Figures in Rs crore
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Source: Capitaline Corporate Database
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Hindustan Zinc : Consolidated
Segment Results
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|
|
% of (Total)
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2306 (03)
|
2206 (03)
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Var.(%)
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% of (Total)
|
2303 (12)
|
2203 (12)
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Var.(%)
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|
Sales
|
|
Zinc,Leadand Silver
|
99
|
7062
|
9175
|
-23
|
100
|
33120
|
28624
|
16
|
|
Wind Energy
|
1
|
49
|
61
|
-20
|
0
|
152
|
166
|
-8
|
|
Total Reported Sales
|
100
|
7111
|
9236
|
-23
|
100
|
33272
|
28790
|
16
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
-
|
|
Net Sales
|
|
7111
|
9236
|
-23
|
|
33272
|
28790
|
16
|
|
PBIT
|
|
Zinc,Leadand Silver
|
99
|
2570
|
4540
|
-43
|
99
|
14388
|
13405
|
7
|
|
Wind Energy
|
1
|
30
|
43
|
-30
|
1
|
95
|
100
|
-5
|
|
Total PBIT
|
100
|
2600
|
4583
|
-43
|
100
|
14483
|
13505
|
7
|
|
Less : Interest
|
|
218
|
44
|
395
|
|
333
|
290
|
15
|
|
Add: Other un-allcoable
|
|
228
|
133
|
71
|
|
1138
|
885
|
29
|
|
PBT
|
|
2,610.00
|
4,672.00
|
-44.14
|
|
15,288.00
|
14,100.00
|
8.43
|
|
Figures in Rs crore
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Source: Capitaline Corporate Database
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