|
Consolidated
net sales of Hindustan Zinc has declined 1.55% to Rs 7866 crore on account of
lower LME coinciding with lower refined metal and silver volumes partially
offset by favourable exchange rates and gains from strategic hedging. Sales of Zinc,Leadand Silver segment has gone
down 2.62% to Rs 7,613.00 crore (accounting for 99.80% of total sales). Sales of Wind Energy segment has gone down
34.78% to Rs 15.00 crore (accounting for 0.20% of total sales). Sequentially
revenue witnessed a decline of 5.6%, owing to lower zinc LME, lower lead &
silver volumes and lower gains from strategic hedging partly offset by
favourable exchange rates, improved zinc volumes and improved lead and silver
prices.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 19.95% to
Rs 2,950.00 crore. PBIT of Zinc,Leadand
Silver segment fell 20.14% to Rs 2,939.00 crore (accounting for 99.63% of total
PBIT). PBIT of Wind Energy segment rose
120.00% to Rs 11.00 crore (accounting for 0.37% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 47.07% to 38.61%. PBIT margin of Wind Energy segment rose from
21.74% to 73.33%. Overall PBIT margin
fell from 47.00% to 38.67%.
Operating
profit margin has declined from 54.69% to 47.13%, leading to 15.17% decline in
operating profit to Rs 3,707.00 crore.
Employee cost increased from 2.24% to 2.42%. Other expenses rose from 42.53% to
50.14%. Selling and administration
expenses rose from 11.79% to 11.89%.
Power and Oil fuel cost rose from 8.87% to 12.84%.
Other
income rose 24.73% to Rs 348 crore.
PBIDT fell 12.78% to Rs 4055 crore.
Provision for interest rose 24% to Rs 62 crore.
PBDT
fell 13.18% to Rs 3993 crore. Provision
for depreciation rose 8.91% to Rs 807 crore.
Profit
before tax down 17.42% to Rs 3,186.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 1030
crore, compared to Rs 1157 crore.
Effective tax rate was 32.33% compared to 29.99%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 20.18% to Rs
2,156.00 crore.
Promoters’
stake was 64.92% as of 31 December 2022 compared to 64.92% as of 31 December
2021. Promoters pledged stake was 87.59%
as of 31 December 2022 ,compared to 22.83% as of 31 December 2021.
Commenting on the
performance, Mr Arun Misra, CEO, said:
“Hindustan Zinc delivered best-ever 9 months refined metal on the back of
highest ever mined metal. In FY22, we reached the one million tonne mined metal landmark, and this year with the
current run-rate, we are confident of achieving the one million tonne refined
metal mark and are fully geared to deliver another stellar annual performance.
Reaching this milestone in FY23 along with a resilient pipeline of projects
will bring us closer to our vision of 1.2 million tonne mined metal in coming
years.
On
the sustainability front, I am pleased to share that Hindustan Zinc is now in
the top 3 sustainable companies in metal & mining sector as rated in
S&P Global Corporate Sustainability Assessment which is a testimony to our
efforts and to the multiple initiatives that we are pursuing to achieve net
zero by 2050. In this journey, our focus is to reduce dependance on thermal
coal in near term through right investments in renewable projects.”
Mr Sandeep Modi, Deputy
& Interim CFO, said:
“We delivered a strong operational & financial performance with yet another
landmark of record 9 months Revenue, EBITDA and PAT, delivering a robust EBITDA
margin of 52% despite heightened volatility in commodity prices on account of
global macroeconomic environment. The consolidated quarterly performance was a
blend of operational efficiencies impacted by input commodity inflation. With
softening of coal cost and ongoing structured cost optimization plan targeted
with operational efficiencies, we are confident to deliver yet another stellar
financial performance and continue to maintain our cost leadership in global
cost curve. With our continuing efforts to expand our Renewable Power
investments and with current tie ups of up to 450MW, we foresee a better cost
predictability and improved cost structure.”
Operational Performance
Mined
metal production for the quarter was at 254 kt, marginally up from Q3 FY22
driven by higher ore production and marginally down compared to last quarter
due to overall mined metal grades. Highest-ever nine months mined metal
production at 761 kt up 5.4% y-o-y, driven by higher ore production, improved
mined metal grades and operational efficiency.
Integrated
metal production for the quarter was at 257 kt, lower by 1.7% y-o-y as per
mined metal availability. Sequentially, up by 4.5% with better plant and mined
metal availability. Highest-ever nine months refined metal production at 762
kt, up 7.9% y-o-y, resulting from better plant availability and consistent
mined metal flow from mines.
Zinc
production during the quarter was at 210 kt, down 1.7% y-o-y and up 11.3%
sequentially. Nine months integrated zinc production was at 606 kt, up 7.3%
y-o-y.
Lead
production for the quarter was at 46 kt, lower by 1.4% y-o-y and 18.1%
sequentially due to planned shutdown at Dariba Lead plant in Q3 FY23. Nine
months refined lead production was at 157 kt, up 10.3% y-o-y.
Silver
production for the quarter was at 161 MT, down 6.9% y-o-y owing to lower feed
grade at SK Mine in line with mine plan for the quarter. It was down 17.1%
sequentially in line with lead metal production. Nine months silver production
was at 532 MT, up 9.6% y-o-y in line with lead metal production.
For year-to-date (YTD)
results analysis
Net
sales of Hindustan Zinc has increased 23.96% to Rs 25589 crore led by improved
zinc LME and volumes, gains from strategic hedging, favourable exchange rates
and better lead & silver volumes which was partially offset by lower lead
& silver prices.. Sales of
Zinc,Leadand Silver segment has gone up 24.10% to Rs 24,866.00 crore
(accounting for 99.50% of total sales).
Sales of Wind Energy segment has gone down 10.71% to Rs 125.00 crore
(accounting for 0.50% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 20.29% to Rs
11,164.00 crore. PBIT of Zinc,Leadand
Silver segment rose 20.54% to Rs 11,079.00 crore (accounting for 99.24% of
total PBIT). PBIT of Wind Energy segment
fell 5.56% to Rs 85.00 crore (accounting for 0.76% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 45.87% to 44.55%. PBIT margin of Wind Energy segment rose from
64.29% to 68.00%. Overall PBIT margin
fell from 46.00% to 44.67%.
Operating
profit margin has declined from 54.56% to 51.78%, leading to 17.65% rise in
operating profit to Rs 13,251.00 crore.
Employee cost decreased from 2.55% to 2.46%. Other expenses rose from 43.02% to
45.53%. Selling and administration expenses
fell from 12.03% to 11.57%. Power and
Oil fuel cost rose from 8.13% to 11.26%.
Other
income rose 9.16% to Rs 1025 crore.
PBIDT rose 17% to Rs 14276 crore.
Provision for interest fell 29.91% to Rs 157 crore.
PBDT
rose 17.87% to Rs 14119 crore. Provision
for depreciation rose 11.19% to Rs 2336 crore.
Profit
before EO grew 19.30% to Rs 11,783.00 crore. The company reported nil EO items
during 9MFY23 compared to EO expense of Rs 134 crore in 9MFY22. PBT after EO
rose 21% to Rs 11783 crore.
Provision
for tax was expense of Rs 3855 crore, compared to Rs 3042 crore. Effective tax rate was 32.72% compared to
31.22%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 18.31% to Rs
7,928.00 crore.
Promoters’
stake was 64.92% as of 31 December 2022 ,compared to 64.92% as of 31 December
2021 . Promoters pledged stake was
87.59% as of 31 December 2022 ,compared to 22.83% as of 31 December 2021.
As
on Dec 31, 2022, the company’s consolidated gross investments and cash &
cash equivalents were Rs 16,482 core as compared to Rs 17,807 crore at the end
of Sept’22.
The
company’s consolidated net investments as at end of Dec 31, 2022, were Rs
11,378 crore as compared to Rs 15,696 crore at end of Sept’22. During the
quarter, the company paid dividend of Rs 6,549 crore.
The
scrip is currently trading at Rs 377
|
Hindustan Zinc : Consolidated
Results
|
|
Particulars
|
2212 (03)
|
2112 (03)
|
Var. (%)
|
2212 (09)
|
2112 (09)
|
Var. (%)
|
2203 (12)
|
2103 (12)
|
Var. (%)
|
|
Net Sales
|
7,866
|
7,990
|
-2
|
25,589
|
20,643
|
24
|
29,440
|
22,629
|
30
|
|
OPM (%)
|
47.1
|
54.7
|
|
51.8
|
54.6
|
|
55.11
|
51.6
|
|
|
OP
|
3,707
|
4,370
|
-15
|
13,251
|
11,263
|
18
|
16,225
|
11,672
|
39
|
|
Other Inc.
|
348
|
279
|
25
|
1,025
|
939
|
9
|
1,216
|
1,819
|
-33
|
|
PBIDT
|
4,055
|
4,649
|
-13
|
14,276
|
12,202
|
17
|
17,441
|
13,491
|
29
|
|
Interest
|
62
|
50
|
24
|
157
|
224
|
-30
|
290
|
386
|
-25
|
|
PBDT
|
3,993
|
4,599
|
-13
|
14,119
|
11,978
|
18
|
17,151
|
13,105
|
31
|
|
Depreciation
|
807
|
741
|
9
|
2336
|
2101
|
11
|
2917
|
2531
|
15
|
|
PBT
|
3,186
|
3,858
|
-17
|
11783
|
9877
|
19
|
14234
|
10574
|
35
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
3186
|
3858
|
-17
|
11783
|
9877
|
19
|
14234
|
10574
|
35
|
|
EO Income
|
0
|
0
|
-
|
0
|
-134
|
-
|
-134
|
0
|
-
|
|
PBT after EO
|
3186
|
3858
|
-17
|
11783
|
9743
|
21
|
14100
|
10574
|
33
|
|
Taxation
|
1030
|
1157
|
-11
|
3855
|
3042
|
27
|
4471
|
2594
|
72
|
|
PAT
|
2156
|
2701
|
-20
|
7928
|
6701
|
18
|
9629
|
7980
|
21
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
2156
|
2701
|
-20
|
7928
|
6701
|
18
|
9629
|
7980
|
21
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
23.0
|
18.9
|
|
|
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 : Consolidated
Segment Results
|
|
|
% of (Total)
|
2212 (03)
|
2112 (03)
|
Var.(%)
|
% of (Total)
|
2212 (09)
|
2112 (09)
|
Var.(%)
|
% of (Total)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Zinc,Leadand Silver
|
100
|
7613
|
7818
|
-3
|
100
|
24866
|
20037
|
24
|
99
|
28624
|
21932
|
31
|
|
Wind Energy
|
0
|
15
|
23
|
-35
|
1
|
125
|
140
|
-11
|
1
|
166
|
139
|
19
|
|
Total Reported Sales
|
100
|
7628
|
7841
|
-3
|
100
|
24991
|
20177
|
24
|
100
|
28790
|
22071
|
30
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
|
0
|
0
|
-
|
|
|
Net Sales
|
100
|
7628
|
7841
|
-3
|
100
|
24991
|
20177
|
24
|
100
|
28790
|
22071
|
30
|
|
PBIT
|
|
|
|
|
|
Zinc,Leadand Silver
|
100
|
2939
|
3680
|
-20
|
99
|
11079
|
9191
|
21
|
99
|
13405
|
9251
|
45
|
|
Wind Energy
|
0
|
11
|
5
|
120
|
1
|
85
|
90
|
-6
|
1
|
100
|
78
|
28
|
|
Total PBIT
|
100
|
2950
|
3685
|
-20
|
100
|
11164
|
9281
|
20
|
100
|
13505
|
9329
|
45
|
|
Less : Interest
|
|
62
|
50
|
24
|
|
157
|
224
|
-30
|
|
290
|
386
|
-25
|
|
Add: Other un-allcoable
|
|
298
|
223
|
34
|
|
776
|
686
|
13
|
|
885
|
1631
|
-46
|
|
PBT
|
100
|
3186
|
3858
|
-17
|
100
|
11783
|
9743
|
21
|
100
|
14100
|
10574
|
33
|
|