|
Consolidated
net sales (including other operating income) of Hindustan Zinc has declined
18.53% to Rs 6791 crore on account of significantly lower zinc prices, lower
zinc and silver volumes and differential strategic hedging impact partly offset
by higher lead and silver prices and favourable exchange rates. Sequentially
revenue witnessed a decline of 6.7%, primarily due to lower zinc prices &
volume and lower silver prices while being offset by favourable exchange rate,
higher lead prices and improved lead & silver volumes.
Sales
of Zinc,Leadand Silver segment has gone down 18.84% to Rs 6,556.00 crore
(accounting for 99.05% of total sales).
Sales of Wind Energy segment has gone up 28.57% to Rs 63.00 crore
(accounting for 0.95% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 35.55% to
Rs 2,340.00 crore. PBIT of Zinc,Leadand
Silver segment fell 36.22% to Rs 2,296.00 crore (accounting for 98.12% of total
PBIT). PBIT of Wind Energy segment rose
41.94% to Rs 44.00 crore (accounting for 1.88% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 44.57% to 35.02%. PBIT margin of Wind Energy segment rose from
63.27% to 69.84%. Overall PBIT margin
fell from 44.68% to 35.35%.
Operating
profit margin has declined from 52.87% to 46.22%, leading to 28.77% decline in
operating profit to Rs 3,139.00 crore.
Employee cost increased from 2.74% to 3.12%. Other expenses rose from 44.57% to
50.96%. Selling and administration
expenses rose from 11.41% to 12.01%.
Power and Oil fuel cost fell from 11.75% to 9.69%.
Other
income fell 39.24% to Rs 223 crore.
PBIDT fell 29.58% to Rs 3362 crore.
Provision for interest rose 354.90% to Rs 232 crore.
PBDT
fell 33.73% to Rs 3130 crore. Provision
for depreciation rose 3.38% to Rs 825 crore.
Profit
before tax down 41.27% to Rs 2,305.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 576
crore, compared to Rs 1245 crore.
Effective tax rate was 24.99% compared to 31.72%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 35.49% to Rs
1,729.00 crore.
Equity
capital stood at Rs 845.00 crore as of 30 September 2023 to Rs 845.00 crore as
of 30 September 2022. Per share face
Value remained same at Rs 2.00.
Promoters’
stake was 64.92% as of 30 September 2023 ,compared to 64.92% as of 30 September
2022 . Promoters pledged stake was
99.37% as of 30 September 2023 ,compared to 86.05% as of 30 September
2022.
Commenting on the
performance, Mr. Arun Misra, CEO, said:
“Hindustan Zinc witnessed significant milestone achievements in its expansion
efforts during the quarter. I am pleased to share the commissioning of our
Fumer plant, Rajpura Dariba concentrator and Zinc Alloy facility ensuring a
more sustainable, circular and efficient operations. Catalysing growth, our
plants and assets are also geared up to maximise performance. With delivery of
steady operational performance in first half of the year and ramped up
facilities, we are confident of delivering a standout financial year. Advancing
swiftly towards our sustainability goals, this quarter we commissioned another
4,000 KLD zero liquid discharge plant at Zawar mines and entered in an
agreement for 180 LNG vehicles for green transportation. I am happy to share
that our ambitious net zero targets are now approved by SBTi making Hindustan
Zinc the only Indian company in mining sector with validated targets.”
Mr. Sandeep Modi, CFO,
said: “With our
persistent focus on cost optimisation, operational efficiencies and working
capital management, Hindustan Zinc delivered another quarter of steady margins
and financial performance despite the complex economic landscape. I am happy to
share that driven by our cost optimisation efforts, we have successfully
achieved third consecutive quarter of sustained cost improvement and the lowest
cost in last six quarters. We are well positioned to execute our strategic
priorities in FY24 revolving around cost optimisation, digital advancement
enhancing our competitive edge, healthy cash flows and robust balance sheet
thereby generating long-term sustainable value for shareholders.”
Operational Performance
Mined
metal production for the quarter was 252 kt, down 1.4% y-o-y and 2.0%
sequentially mainly due to lower ore production at Rampura Agucha and Kayad
mine partly offset by better overall metal grades. H1 FY24 mined metal production
stood at 509 kt, marginally up y-o-y on account of higher ore production
largely at Rampura Agucha supported by better overall metal grades.
Refined
metal production for the quarter was 241 kt, down 1.8% y-o-y and 7.1%
sequentially on account of scheduled maintenance activity. Metal production for
H1 FY24 stood at 501 kt, marginally down y-o-y, in line with plant
availability.
Integrated
zinc production for the quarter was 185 kt, down 2.3% y-o-y and 11.7%
sequentially. Refined lead production for the quarter was 57 kt, flat as
compared to Q2 FY23 and up 11.7% sequentially on account of pyro plant
operations on lead mode during the quarter. H1 FY24 integrated zinc production
stood at 394 kt, marginally down y-o-y. Refined lead production was at 107 kt,
down 2.7% y-o-y in line with the plant availability.
Saleable
silver production for the quarter was 181 MT, marginally up sequentially and
down 6.8% y-o-y due to accumulation of WIP in Q2 FY24. H1 FY24 saleable silver
production stood at 360 MT, down 3.0% y-o-y in line with lead metal production
For year-to-date (YTD)
results analysis
Net
sales (including other operating income) of Hindustan Zinc has declined 26.24%
to Rs 13073 crore. Sales of Zinc,Leadand
Silver segment has gone down 21.07% to Rs 13,618.00 crore (accounting for
99.18% of total sales). Sales of Wind
Energy segment has gone up 1.82% to Rs 112.00 crore (accounting for 0.82% of
total sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 39.86% to
Rs 4,940.00 crore. PBIT of Zinc,Leadand
Silver segment fell 40.22% to Rs 4,866.00 crore (accounting for 98.50% of total
PBIT). PBIT of Wind Energy segment fell
0.00% to Rs 74.00 crore (accounting for 1.50% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 47.18% to 35.73%. PBIT margin of Wind Energy segment fell from
67.27% to 66.07%. Overall PBIT margin
fell from 47.31% to 35.98%.
Operating
profit margin has declined from 53.85% to 49.61%, leading to 32.04% decline in
operating profit to Rs 6,486.00 crore.
Employee cost increased from 2.48% to 3.11%. Other expenses rose from 43.49% to
46.90%. Selling and administration
expenses rose from 11.42% to 12.79%.
Power and Oil fuel cost rose from 10.56% to 11.10%.
Other
income fell 25.41% to Rs 505 crore.
PBIDT fell 31.60% to Rs 6991 crore.
Provision for interest rose 373.68% to Rs 450 crore. Loan funds rose to Rs 11,541.00 crore as of
30 September 2023 from Rs 2,907.00 crore as of 30 September 2022. Inventories declined from Rs 2,540.00 crore
as of 30 September 2022 to Rs 1,788.00 crore as of 30 September 2023. Sundry debtors were lower at Rs 216.00 crore
as of 30 September 2023 compared to Rs 371.00 crore as of 30 September
2022. Cash and bank balance declined
from Rs 4,333.00 crore as of 30 September 2022 to Rs 586.00 crore as of 30
September 2023. Investments declined
from Rs 13,604.00 crore as of 30 September 2022 to Rs 11,074.00 crore as of 30
September 2023.
PBDT
fell 35.40% to Rs 6541 crore. Provision
for depreciation rose 6.34% to Rs 1626 crore.
Fixed assets increased to Rs 19,867.00 crore as of 30 September 2023
from Rs 19,511.00 crore as of 30 September 2022. Intangible assets declined from Rs 290.00
crore to Rs 143.00 crore.
Profit
before tax down 42.83% to Rs 4,915.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 1222
crore, compared to Rs 2825 crore.
Effective tax rate was 24.86% compared to 32.86%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 36.02% to Rs
3,693.00 crore.
Equity
capital stood at Rs 845.00 crore as of 30 September 2023 to Rs 845.00 crore as
of 30 September 2022. Per share face
Value remained same at Rs 2.00.
Promoters’
stake was 64.92% as of 30 September 2023 ,compared to 64.92% as of 30 September
2022 . Promoters pledged stake was
99.37% as of 30 September 2023 ,compared to 86.05% as of 30 September 2022
.
Cash
flow from operating activities decreased to Rs 7,046.00 crore for YTD ended
September 2023 from Rs 8,464.00 crore for YTD ended September 2022. Cash flow used in acquiring fixed assets
during the YTD ended September 2023 stood at Rs 1,994.00 crore, compared to Rs
2,040.00 crore during the YTD ended September 2022.
The
scrip is currently trading at Rs 307
|
Hindustan Zinc : Consolidated
Results
|
|
Particulars
|
2309 (03)
|
2209 (03)
|
Var.(%)
|
2309 (06)
|
2209 (06)
|
Var.(%)
|
2303 (12)
|
2203 (12)
|
Var.(%)
|
|
Net Sales
|
6,791
|
8,336
|
-19
|
13,073
|
17,723
|
-26
|
34,098
|
29,440
|
16
|
|
OPM (%)
|
46.2
|
52.9
|
|
49.6
|
53.9
|
|
51.3
|
55.1
|
|
|
OP
|
3,139
|
4,407
|
-29
|
6,486
|
9,544
|
-32
|
17,506
|
16,225
|
8
|
|
Other Inc.
|
223
|
367
|
-39
|
505
|
677
|
-25
|
1,379
|
1,216
|
13
|
|
PBIDT
|
3,362
|
4,774
|
-30
|
6,991
|
10,221
|
-32
|
18,885
|
17,441
|
8
|
|
Interest
|
232
|
51
|
355
|
450
|
95
|
374
|
333
|
290
|
15
|
|
PBDT
|
3,130
|
4,723
|
-34
|
6,541
|
10,126
|
-35
|
18,552
|
17,151
|
8
|
|
Depreciation
|
825
|
798
|
3
|
1,626
|
1,529
|
6
|
3,264
|
2,917
|
12
|
|
PBT
|
2,305
|
3,925
|
-41
|
4,915
|
8,597
|
-43
|
15,288
|
14,234
|
7
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
2,305
|
3,925
|
-41
|
4,915
|
8,597
|
-43
|
15,288
|
14,234
|
7
|
|
EO Income
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
-134
|
-
|
|
PBT after EO
|
2,305
|
3,925
|
-41
|
4,915
|
8,597
|
-43
|
15,288
|
14,100
|
8
|
|
Taxation
|
576
|
1,245
|
-54
|
1,222
|
2,825
|
-57
|
4,777
|
4,471
|
7
|
|
PAT
|
1,729
|
2,680
|
-35
|
3,693
|
5,772
|
-36
|
10,511
|
9,629
|
9
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
1,729
|
2,680
|
-35
|
3,693
|
5,772
|
-36
|
10,511
|
9,629
|
9
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
24.9
|
23.0
|
|
|
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)
|
2309 (03)
|
2209 (03)
|
Var.(%)
|
% of (Total)
|
2309 (06)
|
2209 (06)
|
Var.(%)
|
% of (Total)
|
2303 (12)
|
2203 (12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Zinc,Leadand Silver
|
99
|
6556
|
8078
|
-19
|
99
|
13618
|
17253
|
-21
|
100
|
33120
|
28624
|
16
|
|
Wind Energy
|
1
|
63
|
49
|
29
|
1
|
112
|
110
|
2
|
0
|
152
|
166
|
-8
|
|
Total Reported Sales
|
100
|
6619
|
8127
|
-19
|
100
|
13730
|
17363
|
-21
|
100
|
33272
|
28790
|
16
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
|
0
|
0
|
-
|
|
|
Net Sales
|
|
6619
|
8127
|
-19
|
|
13730
|
17363
|
-21
|
|
33272
|
28790
|
16
|
|
PBIT
|
|
|
|
|
|
Zinc,Leadand Silver
|
98
|
2296
|
3600
|
-36
|
99
|
4866
|
8140
|
-40
|
99
|
14388
|
13405
|
7
|
|
Wind Energy
|
2
|
44
|
31
|
42
|
2
|
74
|
74
|
0
|
1
|
95
|
100
|
-5
|
|
Total PBIT
|
100
|
2340
|
3631
|
-36
|
100
|
4940
|
8214
|
-40
|
100
|
14483
|
13505
|
7
|
|
Less : Interest
|
|
232
|
51
|
355
|
|
450
|
95
|
374
|
|
333
|
290
|
15
|
|
Add: Other un-allcoable
|
|
197
|
345
|
-43
|
|
425
|
478
|
-11
|
|
1138
|
885
|
29
|
|
PBT
|
|
2305
|
3925
|
-41
|
|
4915
|
8597
|
-43
|
|
15288
|
14100
|
8
|
|