|
Hindustan
Zinc consolidated net sales increased 32.44% to Rs 7,990 crore in Q3FY22
compared to Q3FY21 led by higher zinc volumes and higher zinc & lead LME
prices as well as higher premiums while partly offset by lower lead &
silver volumes. Over the year, zinc & lead LME prices were up 28% & 23%
respectively. Sequentially revenue increased 31%, primarily due to higher metal
and silver volumes and zinc LME prices partially offset by lower silver prices
and WPP volumes. Sequentially zinc and silver sales volumes increased 29% &
14% respectively, while lead sales volumes remained almost flat.
Sales
of wind energy segment has gone down 11.54% to Rs 23 crore (accounting for
0.29% of total sales). Sales of silver
metal segment has gone down 5.59% to Rs 1,081 crore (accounting for 13.79% of
total sales). Sales of zinc, lead others segment has gone up 42.01% to Rs 6,737
crore (accounting for 85.92% of total sales).
Operating
profit margin has jumped from 54.19% to 54.69%, leading to 33.68% rise in
operating profit to Rs 4,370 crore.
Employee cost decreased from 3.15% to 2.24%. Other expenses rose from
42.44% to 42.53%. Selling and administration expenses fell from 12.15% to
11.79%. Power and Oil fuel cost rose from 7.32% to 8.87%.
Other
income fell 38% to Rs 279 crore. PBIDT
rose 25.01% to Rs 4649 crore. Profit
before interest, tax and other unallocable items (PBIT) has jumped 36.18% to Rs
3,685 crore. PBIT of Wind Energy segment
fell 37.50% to Rs 5 crore (accounting for 0.14% of total PBIT). PBIT of sIlver metal segment fell 4.64% to Rs
966 crore (accounting for 26.21% of total PBIT). PBIT of zinc, lead others segment rose 61.07%
to Rs 2,714 crore (accounting for 73.65% of total PBIT).
PBIT
margin of wind energy segment fell from 30.77% to 21.74%. PBIT margin of silver metal segment rose from
88.47% to 89.36%. PBIT margin of zinc,
lead others segment rose from 35.52% to 40.28%.
Overall PBIT margin rose from 45.75% to 47.00%.
Provision
for interest fell 62.96% to Rs 50 crore.
PBDT rose 28.32% to Rs 4599 crore.
Provision for depreciation rose 15.96% to Rs 741 crore. Profit before tax grew 31% to Rs 3,858
crore. Provision for tax was expense of
Rs 1157 crore, compared to Rs 745 crore.
Effective tax rate was 29.99% compared to 25.30%. Profit after tax rose
22.77% to Rs 2,701 crore.
Promoters’
stake was 64.92% as of 31 December 2021 compared to 64.92% as of 31 December
2020 . Promoters pledged stake was
22.83% as of 31 December 2021 compared to 22.83% as of 31 December 2020.
Commenting on the
performance, Mr Arun Misra, CEO, said: “We delivered best-ever 9M mined metal production and
historic-high quarterly refined metal production. At the current run-rate, we
are confident to deliver on the one million mark this year. Hindustan Zinc is
also geared to invest in world-class technologies & equipment to produce
value-added zinc alloy products & provide matching international quality in
the domestic market. Our ESG journey is progressing well and we are happy to be
ranked first globally in the Dow Jones Sustainability Index under environment
category amongst the metals & mining peers. We stand committed to
decarbonize our mining operations. We will invest 1bn dollars over next 5 years
in our climate change initiatives to bring down dependence on thermal power
& progress on our journey of net zero by 2050.”
Mr Sandeep Modi, Interim
CFO, said: “We
delivered historic-high quarterly Revenue & EBITDA as well as highest-ever
Net Profit since transition to UG mining. We maintained cost at almost same
levels from last quarter despite continuously rising energy prices. Our
sustained efforts on operational efficiencies & cost rationalisation along
with favourable LME prices has enabled us to improve margins in these times and
generate industry-leading returns for our shareholders.”
Operational Performance
Mined
metal production for the quarter was at 252kt, up 3.4% y-o-y and 9M was at
722kt, up 5.5% y-o-y. This was on account of higher ore production at Sindesar
Khurd, Rampura Agucha & Zawar mines, improvement in recoveries partly
offset by lower mining grade. Sequentially mined metal production grew by 1.4%
mainly due to higher ore treatment at Kayad & Sindesar Khurd mines and
improvement in recovery.
Integrated
metal production was 261kt for the quarter, up 11% y-o-y & up 25%
sequentially. This was supported by better plant & mined metal availability
and improved operating parameters. Integrated zinc production was 214kt, up 17%
y-o-y and up by 32% sequentially. Integrated lead production for the quarter
remained flat sequentially at 47kt but was down 10% y-o-y on account of Pyro
plant (CLZS) operations on Zinc-Lead mode compared to Lead mode only. Overall,
for the nine-month period, metal production was 707kt up 5% y-o-y in line with
better plant and mined metal availability
Integrated
silver production was 173 MT, down 5% y-o-y in line with lead production &
up 14% sequentially due to depletion of WIP. For the nine-month period, silver
production was 4% lower y-o-y to 485 MT in line with the lower lead metal
production and depletion of the Silver WIP.
For year-to-date (YTD) results
analysis
Net
sales of Hindustan Zinc has increased 31.63% to Rs 20,643 crore. Sales of wind energy segment has gone up
22.81% to Rs 140 crore (accounting for 0.69% of total sales). Sales of silver
metal segment has gone up 4.55% to Rs 3,170 crore (accounting for 15.71% of
total sales). Sales of zinc, lead others segment has gone up 38.25% to Rs
16,867 crore (accounting for 83.60% of total sales).
Operating
profit margin has jumped from 49.72% to 54.56%, leading to 44.45% rise in
operating profit to Rs 11,263 crore.
Employee cost decreased from 3.84% to 2.55%. Other expenses fell from
45.35% to 43.02%. Selling and administration expenses fell from 12.16% to
12.03%. Power and Oil fuel cost fell from 8.23% to 8.13%. Other income fell
38.39% to Rs 939 crore. PBIDT rose
30.91% to Rs 12202 crore.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 51.68% to Rs
9,281 crore. PBIT of wind energy segment
rose 36.36% to Rs 90 crore (accounting for 0.97% of total PBIT). PBIT of silver metal segment rose 8.15% to Rs
2,839 crore (accounting for 30.59% of total PBIT). PBIT of zinc, lead others segment rose 85.30%
to Rs 6,352 crore (accounting for 68.44% of total PBIT).
PBIT
margin of wind energy segment rose from 57.89% to 64.29%. PBIT margin of silver metal segment rose from
86.58% to 89.56%. PBIT margin of zinc,
lead others segment rose from 28.10% to 37.66%.
Overall PBIT margin rose from 39.87% to 46.00%.
Provision
for interest fell 12.16% to Rs 224 crore. PBDT rose 32.12% to Rs 11978
crore. Provision for depreciation rose
14.50% to Rs 2101 crore. Profit before EO grew 36.59% to Rs 9,877 crore. The company reported EO income of Rs 13 crore
during the period comapred to nil EO items during the correspondiong previous
year period. PBT after EO was up 35% to Rs 9743 crore.
Provision
for tax was expense of Rs 3042 crore, compared to Rs 1732 crore. Effective tax rate was 31.22% compared to
23.95%. Profit after tax rose 21.86% to Rs 6,701.00 crore.
Promoters’
stake was 64.92% as of 31 December 2021 ,compared to 64.92% as of 31 December
2020 . Promoters pledged stake was
22.83% as of 31 December 2021 ,compared to 22.83% as of 31 December 2020 .
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 326
|
Hindustan Zinc : Consolidated Results
|
|
Particulars
|
2112 (03)
|
2012 (03)
|
Var.(%)
|
2112 (09)
|
2012 (09)
|
Var.(%)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Net Sales
|
7,990
|
6,033
|
32
|
20,643
|
15,682
|
32
|
22,629
|
18,561
|
22
|
|
OPM (%)
|
54.7
|
54.2
|
|
54.6
|
49.7
|
|
51.6
|
47.7
|
|
|
OP
|
4,370
|
3,269
|
34
|
11,263
|
7,797
|
44
|
11,672
|
8,847
|
32
|
|
Other Inc.
|
279
|
450
|
-38
|
939
|
1,524
|
-38
|
1,819
|
1,934
|
-6
|
|
PBIDT
|
4,649
|
3,719
|
25
|
12,202
|
9,321
|
31
|
13,491
|
10,781
|
25
|
|
Interest
|
50
|
135
|
-63
|
224
|
255
|
-12
|
386
|
112
|
245
|
|
PBDT
|
4,599
|
3,584
|
28
|
11,978
|
9,066
|
32
|
13,105
|
10,669
|
23
|
|
Depreciation
|
741
|
639
|
16
|
2,101
|
1,835
|
15
|
2,531
|
2,279
|
11
|
|
PBT
|
3,858
|
2,945
|
31
|
9,877
|
7,231
|
37
|
10,574
|
8,390
|
26
|
|
PBT before EO
|
3,858
|
2,945
|
31
|
9,877
|
7,231
|
37
|
10,574
|
8,390
|
26
|
|
EO Income
|
0
|
0
|
-
|
-134
|
0
|
-
|
0
|
0
|
-
|
|
PBT after EO
|
3,858
|
2,945
|
31
|
9743
|
7231
|
35
|
10574
|
8390
|
26
|
|
Taxation
|
1,157
|
745
|
55
|
3042
|
1732
|
76
|
2594
|
1585
|
64
|
|
PAT
|
2,701
|
2,200
|
23
|
6701
|
5499
|
22
|
7980
|
6805
|
17
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
18.9
|
16.1
|
|
|
Notes
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|
* 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
|
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Hindustan Zinc : Consolidated Segment Results
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|
|
% of (Total)
|
2112 (03)
|
2012 (03)
|
Var.(%)
|
% of (Total)
|
2112 (09)
|
2012 (09)
|
Var.(%)
|
% of (Total)
|
2103 (12)
|
2003 (12)
|
Var.(%)
|
|
Sales
|
|
Zinc, Lead, Others
|
84
|
6,737
|
4,744
|
42
|
82
|
16,867
|
12,200
|
38
|
78
|
17,550
|
15,715.00
|
12
|
|
Silver Metal
|
14
|
1,081
|
1,145
|
-6
|
15
|
3,170
|
3,032
|
5
|
19
|
4,382
|
2444
|
79
|
|
Wind Energy
|
0
|
23
|
26
|
-12
|
1
|
140
|
114
|
23
|
1
|
139
|
173
|
-20
|
|
Revenue from operations
|
98
|
7,841
|
5,915
|
33
|
98
|
20,177
|
15,346
|
31
|
98
|
22,071
|
18,332
|
20
|
|
Other Operating Income
|
2
|
149
|
118
|
26
|
2
|
466
|
336
|
39
|
2
|
558
|
229
|
144
|
|
Total Operating Income
|
100
|
7,990
|
6,033
|
32
|
100
|
20,643
|
15,682
|
32
|
100
|
22,629
|
18,561
|
22
|
|
PBIT
|
|
Zinc, Lead, Others
|
74
|
2,714
|
1,685
|
61
|
68
|
6,352
|
3,428
|
85
|
58
|
5,400
|
4431
|
22
|
|
Silver Metal
|
26
|
966
|
1,013
|
-5
|
31
|
2,839
|
2,625
|
8
|
41
|
3,851
|
2127
|
81
|
|
Wind Energy
|
0
|
5
|
8
|
-38
|
1
|
90
|
66
|
36
|
1
|
78
|
109.00
|
-28
|
|
Total PBIT
|
100
|
3,685
|
2,706
|
36
|
100
|
9,281
|
6,119
|
52
|
100
|
9,329
|
6,667
|
40
|
|
Less : Interest
|
|
50
|
135
|
-63
|
|
224
|
255
|
-12
|
|
386
|
112
|
245
|
|
Add: Other un-allcoable
|
|
223
|
374
|
-40
|
|
686
|
1,367
|
-50
|
|
1,631
|
1,835.00
|
-11
|
|
PBT
|
|
3,858
|
2,945
|
31
|
|
9,743
|
7,231
|
35
|
|
10,574
|
8,390
|
26
|
|