|
Hindustan
Zinc net sales increased 8.16% to Rs 6,122 crore in Q2FY22 compared to Q2FY21
led by higher zinc & lead LME prices & higher premiums as well as
higher silver prices partly offset by lower metal & silver volumes. Over
the year, zinc & lead LME prices were up 28% & 25% respectively.
Sequentially revenue decreased 6%, primarily due to lower metal & silver
volumes and lower silver prices partly offset by higher zinc & lead LME
prices & higher premiums. Zinc sales volume decreased 12% q-o-q and lead by
4% q-o-q in line with lower production.
Zinc
cost of production before royalty (COP) was Rs 83,208 per tonne for the
quarter, higher by 22% y-o-y and 5% sequentially. H1FY22 COP was Rs 80,991 per
tonne, up 13.6% y-o-y (12.1% in rupee terms). The COP has been affected by
input commodity price increase (coal, diesel, met coke etc.) and higher revenue
mine development partially offset by benefits from operational efficiencies and
better recoveries. Sequentially, maintenance shutdown & lower metal volumes
also weighed on the cost of production.
Operating
profit margin has jumped from 52.16% to 54.48%, leading to 12.97% rise in
operating profit to Rs 3,335 crore. Rise
was primarily due to higher zinc & lead LME prices, higher premiums as well
as higher silver prices. Employee cost decreased from 3.01% to 2.62%. Other expenses rose from 43.49% to
45.38%. Selling and administration
expenses rose from 12.20% to 12.97%.
Power and Oil fuel cost fell from 7.88% to 7.81%.
Other
income fell 20.26% to Rs 311 crore.
PBIDT rose 9.10% to Rs 3646 crore.
Provision for interest up 20.59% to Rs 82 crore. PBDT rose 8.86% to Rs 3564 crore. Provision for depreciation rose 7.67% to Rs
702 crore. Profit before tax grew 9.15%
to Rs 2,862 crore. Provision for tax was
expense of Rs 845 crore, compared to Rs 682 crore. Effective tax rate was 29.52% compared to
26.01%.
Profit
after tax rose 3.97% to Rs 2,017 crore mainly driven by recovery in metal
prices and lower effective tax sequentially.
Promoters’
stake was 64.92% as of 30 September 2021 ,compared to 64.92% as of 30 September
2020 . Promoters pledged stake was
22.83% as of 30 September 2021 ,compared to 22.83% as of 30 September 2020 .
Commenting on the performance,
Mr Arun Misra, CEO, said:
“We delivered record high H1 mined metal production and mine development since
transition to underground mining operations. With effective systems &
planning, teams at Hindustan Zinc have strengthened the backbone of our
operations setting the stage right for us to deliver one million production
mark. We are also progressing well on our ESG journey and have committed to Net
zero emissions by 2050. Hindustan Zinc has also joined the Taskforce on
Nature-related Financial Disclosure (TNFD) to tackle nature-related risks
proactively. We are proud and look forward to participate in British High
Commission Conference of the Parties (COP26).”
Mr Sandeep Modi, Interim
CFO, said: “We
delivered ever-highest H1 EBITDA despite operational challenges and external
headwinds from ongoing global energy crisis. We believe that with operational
challenges behind us, we have reset the system for a robust delivery in the
future. We remain committed to protect our margins, generate robust free cash
flow & invest in sustainability, all of which together will help us to
create & deliver long lasting value for our shareholders.”
Operational Performance
Ore: Total ore production for the quarter
was up 2.6% y-o-y to 3.99 million tonne, led by strong growth in Zawar and
Sindesar Khurd (SK) mines partially offset by lower production at Kayad and
Rajpura Dariba (RD) mines. Ore production at Rampura Agucha mine remained flat
y-o-y. On a sequential basis, ore production was up 10.3% primarily driven by
exceptional performance at SK and Kayad mine with strong performances from Rajpura
Dariba, Zawar and Rampura Agucha mines. For the six-months period, ore
production witnessed a growth of 8.1% y-o-y to 7.6 million tonne. Higher
production from Rampura Agucha, Zawar and Rajpura Dariba were partially offset
by lower ore production at Kayad mines.
Metal-In-Concentrate
(MIC): Total MIC production for the quarter at
248kt, up 4.4% y-o-y on account of higher ore treatment at Rampura Agucha,
Zawar and Rajpura Dariba mines supported by improvement in recovery, which has
been partly offset by lower grades. Sequentially, mined metal production grew
by 12.3% mainly due to higher ore treatment at Sindesar Khurd, Rampura Agucha
& Kayad mine and improvement in mining grades & recovery. Overall H1
FY22 MIC production was 470kt up 7% y-o-y in line with higher ore treatment at
Rampura Agucha, Zawar mines & Rajpura Dariba mine and increased recovery,
offset by a slight dip in overall grades.
Integrated metal
production was 209kt
for the quarter, down 12% as compared to both Q2 FY21 & Q1 FY22 on account
of extended shutdown at one of the roasters at Chanderiya Smelter for Repairs
& overhaul of Structural components. Integrated zinc production was 162kt,
down 10% as compared to Q2 FY21 and down by 14% as compared to Q1 FY22.
Integrated lead production for the quarter was down 18% y-o-y to 47kt on
account of annual shutdown at Dariba Lead Smelters. Integrated silver
production was 152 tonne, down 25% y-o-y in line with lead production &
depletion of WIP in Q2 FY21 & down 5% as compared to Q1 FY22. H1 FY22 metal
production was 445kt, up 2% as compared to H1 FY21 in line with Roaster
availability, while silver production was 2% lower y-o-y to 313 tonne.
For year-to-date (YTD)
results analysis
Net
sales of Hindustan Zinc increased 31.13% to Rs 12,653 crore. Operating profit margin has jumped from
46.93% to 54.48%, leading to 52.23% rise in operating profit to Rs 6,893
crore. Employee cost decreased from
4.29% to 2.74%. Other expenses fell from 47.23% to 43.33%. Selling and
administration expenses rose from 12.16% to 12.18%. Power and Oil fuel cost
fell from 8.81% to 7.68%.
Other
income fell 38.55% to Rs 660 crore.
PBIDT rose 34.83% to Rs 7553 crore.
Provision for interest up 45% to Rs 174 crore. PBDT rose 34.60% to Rs 7379 crore. Provision for depreciation rose 13.71% to Rs
1360 crore. Profit before EO grew 40.43%
to Rs 6,019 crore. The company reported
EO expense of Rs 134 crore representing amount charged in respect of settlement
of entry tax dispute under amnesty scheme launched by Government of Rajasthan compared
to nil in the corresponding previous year period. PBT after EO was up 37% to Rs
5885 crore.
Provision
for tax was expense of Rs 1885 crore compared to Rs 987 crore. Effective tax rate was 32.03% compared to
23.03%.
Profit
after tax rose 21.25% to Rs 4,000 crore.
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 322
|
Hindustan Zinc : Standalone Results
|
|
Particulars
|
2109 (03)
|
2009 (03)
|
Var.(%)
|
2109 (06)
|
2009 (06)
|
Var.(%)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Net
Sales
|
6,122
|
5,660
|
8
|
12,653
|
9,649
|
31
|
22,629
|
18,561
|
22
|
|
OPM
(%)
|
54.5
|
52.2
|
|
54.5
|
46.9
|
|
51.6
|
47.7
|
|
|
OP
|
3,335
|
2,952
|
13
|
6,893
|
4,528
|
52
|
11,672
|
8,847
|
32
|
|
Other
Inc.
|
311
|
390
|
-20
|
660
|
1,074
|
-39
|
1,819
|
1,934
|
-6
|
|
PBIDT
|
3,646
|
3,342
|
9
|
7,553
|
5,602
|
35
|
13,491
|
10,781
|
25
|
|
Interest
|
82
|
68
|
21
|
174
|
120
|
45
|
386
|
112
|
245
|
|
PBDT
|
3,564
|
3,274
|
9
|
7,379
|
5,482
|
35
|
13,105
|
10,669
|
23
|
|
Depreciation
|
702
|
652
|
8
|
1,360
|
1,196
|
14
|
2,531
|
2,279
|
11
|
|
PBT
before EO
|
2,862
|
2,622
|
9
|
6,019
|
4,286
|
40
|
10,574
|
8,390
|
26
|
|
EO
Income
|
0
|
0
|
-
|
-134
|
0
|
-
|
0
|
0
|
-
|
|
PBT
after EO
|
2,862
|
2,622
|
9
|
5,885
|
4,286
|
37
|
10,574
|
8,390
|
26
|
|
Taxation
|
845
|
682
|
24
|
1,885
|
987
|
91
|
2,594
|
1,585
|
64
|
|
PAT
|
2,017
|
1,940
|
4
|
4,000
|
3,299
|
21
|
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)
|
2109 (03)
|
2009 (03)
|
Var.(%)
|
% of (Total)
|
2109 (06)
|
2009 (06)
|
Var.(%)
|
% of (Total)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Sales
|
|
Zinc,
Lead, Others
|
80
|
4,913
|
4,249
|
16
|
80
|
10,130
|
7,456
|
36
|
78
|
17,550
|
15,715.00
|
12
|
|
Silver
Metal
|
16
|
983
|
1,242
|
-21
|
17
|
2,089
|
1,887
|
11
|
19
|
4,382
|
2444
|
79
|
|
Wind
Energy
|
1
|
62
|
42
|
48
|
1
|
117
|
88
|
33
|
1
|
139
|
173
|
-20
|
|
Revenue
from operations
|
97
|
5,958
|
5,533
|
8
|
97
|
12,336
|
9,431
|
31
|
98
|
22,071
|
18,332
|
20
|
|
Other
Operating Income
|
3
|
164
|
127
|
29
|
3
|
317
|
218
|
45
|
2
|
558
|
229
|
144
|
|
Total
Operating Income
|
100
|
6,122
|
5,660
|
8
|
100
|
12,653
|
9,649
|
31
|
100
|
22,629
|
18,561
|
22
|
|
PBIT
|
|
Zinc,
Lead, Others
|
65
|
1,740
|
1,221
|
43
|
65
|
3,638
|
1,743
|
109
|
58
|
5,400
|
4431
|
22
|
|
Silver
Metal
|
33
|
878
|
1,080
|
-19
|
33
|
1,873
|
1,612
|
16
|
41
|
3,851
|
2127
|
81
|
|
Wind
Energy
|
2
|
44
|
28
|
57
|
2
|
85
|
58
|
47
|
1
|
78
|
109.00
|
-28
|
|
Total
PBIT
|
100
|
2,662
|
2,329
|
14
|
100
|
5,596
|
3,413
|
64
|
100
|
9,329
|
6,667
|
40
|
|
Less
: Interest
|
|
82
|
68
|
21
|
|
174
|
120
|
45
|
|
386
|
112
|
245
|
|
Add:
Other un-allcoable
|
|
282
|
361
|
-22
|
|
463
|
993
|
-53
|
|
1,631
|
1,835.00
|
-11
|
|
PBT
|
|
2,862
|
2,622
|
9
|
|
5,885
|
4,286
|
37
|
|
10,574
|
8,390
|
26
|
|