|
Consolidated
net sales (including other operating income) of Hindustan Zinc has declined
11.28% to Rs 7549 crore during Q4FY24 compared to Q4FY23. Sales of Zinc,Leadand Silver segment has gone
down 12.02% to Rs 7,262.00 crore (accounting for 99.68% of total sales). Sales of Wind Energy segment has gone down
14.81% to Rs 23.00 crore (accounting for 0.32% of total sales).
Revenue
from operations during the quarter was up 3% q-o-q on account of better zinc
volumes partly offset by lower lead & silver volumes, and lower metal
prices. The revenue plunged by 11% y-o-y on account of significantly lower zinc
& lead prices and lower lead volume, partly offset by increased zinc &
silver volumes, silver prices and favourable exchange rates.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 17.26% to
Rs 2,746.00 crore. PBIT of Zinc,Leadand
Silver segment fell 17.20% to Rs 2,740.00 crore (accounting for 99.78% of total
PBIT). PBIT of Wind Energy segment fell
40.00% to Rs 6.00 crore (accounting for 0.22% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 40.09% to 37.73%. PBIT margin of Wind Energy segment fell from
37.04% to 26.09%. Overall PBIT margin
fell from 40.08% to 37.69%.
Operating
profit margin has declined from 50.01% to 48.34%, leading to 14.24% decline in
operating profit to Rs 3,649.00 crore.
Employee cost increased from 2.49% to 2.93%. Other expenses rose from 48.95% to
50.03%. Selling and administration
expenses fell from 12.79% to 12.42%.
Power and Oil fuel cost fell from 9.61% to 8.77%.
Other
income fell 22.88% to Rs 273 crore.
PBIDT fell 14.91% to Rs 3922 crore.
Provision for interest rose 48.86% to Rs 262 crore.
PBDT
fell 17.44% to Rs 3660 crore. Provision
for depreciation rose 0.97% to Rs 937 crore.
Fixed assets declined from Rs 19,767.00 crore as of 31 March 2023 to Rs
19,667.00 crore as of 31 March 2024.
Intangible assets increased from Rs 92.00 crore to Rs 180.00 crore.
Profit
before tax down 22.31% to Rs 2,723.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 685
crore, compared to Rs 922 crore.
Effective tax rate was 25.16% compared to 26.31%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 21.10% to Rs
2,038.00 crore.
Equity
capital stood at Rs 845.00 crore as of 31 March 2024 to Rs 845.00 crore as of
31 March 2023. Per share face Value
remained same at Rs 2.00.
Promoters’
stake was 64.92% as of 31 March 2024 ,compared to 64.92% as of 31 March 2023
. Promoters pledged stake was 99.37% as
of 31 March 2024 ,compared to 87.59% as of 31 March 2023.
Commenting on the
performance, Mr. Arun Misra, CEO, said:
“FY 2023-24 has been a year of solid growth for HZL, with mined metal, refined
metal, and silver recording its highest historic production levels, supported
by a backdrop of fatality-free operations. As part of our strategy, it was
driven by our increased focus on silver & metal production and cost
optimisation. The company withstood the market headwinds during the year,
ensuring preservation of margins and shareholder value. Fuelled by our robust
silver maximisation strategy, I am thrilled to announce that HZL has now become
the 3rd largest silver producer globally. Additionally, during the quarter, HZL
also incorporated ‘Hindmetal Exploration Services Private Limited’, as a wholly
owned subsidiary, with an objective to explore, discover, develop and tap
mineral resources aligning with the national focus and vision.
Our
commitment on the sustainability efforts remains robust. I am happy to share
that our renewable energy (RE) power delivery agreement of 450 MW is advancing
well and the first flow of RE power is now preponed and expected to begin in
April’24, contributing to our journey towards achieving net zero targets. Our
company has been awarded the CII National HR Excellence Award underscoring our
exemplary people practices. With the full implementation of commissioned
projects, HZL is poised for another exceptional year ahead.”
Mr. Sandeep Modi, CFO,
said: “Despite the
plunging metal prices, HZL has consistently sustained its margin at a steady
47% by recording its fifth consecutive quarter of sustained cost reduction,
clocking the lowest cost in last 3 years. This demonstrates the effectiveness
of our agile decision-making strategy, with instances such as maximization of silver
production leveraging the soaring silver prices, power plant modifications
ensuring better linkage coal consumption thereby lowering the power costs along
with operational & commercial efficiencies. I firmly believe that the
challenges encountered throughout the year have strengthened our resilience and
fortitude, propelling us to strive for even greater performance in the upcoming
year towards our aspired annual targets and strong balance sheet.”
Operational Performance
Mined
metal production for the quarter was 299 kt, up 11% sequentially, driven by
higher ore production across mines, further supplemented by improved mined
metal grades, but marginally down y-o-y. The full year mined metal recorded the
best-ever production of 1,079 kt, up 2% y-o-y on account of improved mined
metal grades. Refined metal production for the quarter stood at 273 kt, its
highest-ever. The production was up 6% sequentially on account of better plant
availability, and up 1% y-o-y. Refined metal production for the full year stood
at its highest-ever, reaching 1,033 kt, marginally up y-o-y.
Refined
zinc production for the quarter was 220 kt, up 9% sequentially and 2% y-o-y.
Refined lead production for the quarter was 53 kt, down 5% sequentially and 2%
y-o-y. For the full year, refined zinc production stood at 817 kt, marginally
down y-o-y, and refined lead production was at 216 kt, up 3% y-o-y, on account
of pyro operations being operated on lead mode for longer duration during the
year to maximize silver production.
Saleable
silver production for the quarter was 189 MT, down 4% q-o-q in line with lead
metal production, partly offset by WIP depletion, and up 4% y-o-y on account of
WIP depletion during the quarter. Full year saleable silver production stood at
its ever highest of 746 MT, up 5% y-o-y in line with lead metal production.
Full year results
analysisNet
sales (including other operating income) of Hindustan Zinc has declined 15.15%
to Rs 28932 crore. Sales of Zinc,Leadand
Silver segment has gone down 15.68% to Rs 27,926.00 crore (accounting for
99.44% of total sales). Sales of Wind
Energy segment has gone up 2.63% to Rs 156.00 crore (accounting for 0.56% of
total sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 28.27% to
Rs 10,389.00 crore. PBIT of Zinc,Leadand
Silver segment fell 28.36% to Rs 10,307.00 crore (accounting for 99.21% of
total PBIT). PBIT of Wind Energy segment
fell 13.68% to Rs 82.00 crore (accounting for 0.79% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 43.44% to 36.91%. PBIT margin of Wind Energy segment fell from
62.50% to 52.56%. Overall PBIT margin
fell from 43.53% to 37.00%.
Operating
profit margin has declined from 51.34% to 47.20%, leading to 21.99% decline in
operating profit to Rs 13,656.00 crore.
Employee cost increased from 2.47% to 2.85%. Other expenses rose from 46.41% to 50.21%. Selling and administration expenses rose
from 11.88% to 12.09%. Power and Oil
fuel cost fell from 10.84% to 9.77%.
Other
income fell 22.12% to Rs 1074 crore.
PBIDT fell 22% to Rs 14730 crore.
Provision for interest rose 186.79% to Rs 955 crore. Loan funds declined from Rs 11,881.00 crore
as of 31 March 2023 to Rs 8,722.00 crore as of 31 March 2024. Inventories rose to Rs 1,926.00 crore as of
31 March 2024 from Rs 1,862.00 crore as of 31 March 2023. Sundry debtors were lower at Rs 155.00 crore
as of 31 March 2024 compared to Rs 380.00 crore as of 31 March 2023. Cash and bank balance declined from Rs 1,412.00
crore as of 31 March 2023 to Rs 175.00 crore as of 31 March 2024. Investments rose to Rs 10,452.00 crore as of
31 March 2024 from Rs 10,107.00 crore as of 31 March 2023 .
PBDT
fell 25.75% to Rs 13775 crore. Provision
for depreciation rose 6.25% to Rs 3468 crore.
Fixed assets declined from Rs 19,767.00 crore as of 31 March 2023 to Rs
19,667.00 crore as of 31 March 2024.
Intangible assets increased from Rs 92.00 crore to Rs 180.00 crore.
Profit
before tax down 32.58% to Rs 10,307.00 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense
of Rs 2548 crore, compared to Rs 4777 crore.
Effective tax rate was 24.72% compared to 31.25%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 26.18% to Rs
7,759.00 crore.
Equity
capital stood at Rs 845.00 crore as of 31 March 2024 to Rs 845.00 crore as of
31 March 2023. Per share face Value
remained same at Rs 2.00.
Promoters’
stake was 64.92% as of 31 March 2024 ,compared to 64.92% as of 31 March 2023
. Promoters pledged stake was 99.37% as
of 31 March 2024 ,compared to 87.59% as of 31 March 2023 .
Cash
flow from operating activities decreased to Rs 13,346.00 crore for year ended
March 2024 from Rs 15,162.00 crore for year ended March 2023. Cash flow used in acquiring fixed assets
during the year ended March 2024 stood at Rs 3,866.00 crore, compared to Rs
3,594.00 crore during the year ended March 2023.
The
scrip is currently trading at Rs 398
|
Hindustan Zinc : Consolidated
Results
|
|
Particulars
|
2403 (03)
|
2303 (03)
|
Var.(%)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
|
Net Sales
|
7,549
|
8,509
|
-11
|
28,932
|
34,098
|
-15
|
|
OPM (%)
|
48.3
|
50.0
|
|
47.2
|
51.3
|
|
|
OP
|
3,649
|
4,255
|
-14
|
13,656
|
17,506
|
-22
|
|
Other Inc.
|
273
|
354
|
-23
|
1,074
|
1,379
|
-22
|
|
PBIDT
|
3,922
|
4,609
|
-15
|
14,730
|
18,885
|
-22
|
|
Interest
|
262
|
176
|
49
|
955
|
333
|
187
|
|
PBDT
|
3,660
|
4,433
|
-17
|
13,775
|
18,552
|
-26
|
|
Depreciation
|
937
|
928
|
1
|
3,468
|
3,264
|
6
|
|
PBT
|
2,723
|
3,505
|
-22
|
10,307
|
15,288
|
-33
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
2723
|
3505
|
-22
|
10307
|
15288
|
-33
|
|
EO Income
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT after EO
|
2723
|
3505
|
-22
|
10307
|
15288
|
-33
|
|
Taxation
|
685
|
922
|
-26
|
2548
|
4777
|
-47
|
|
PAT
|
2038
|
2583
|
-21
|
7759
|
10511
|
-26
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
2038
|
2583
|
-21
|
7759
|
10511
|
-26
|
|
EPS (Rs)*
|
4.82
|
6.11
|
-21
|
18.36
|
24.88
|
-26
|
|
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)
|
2403 (03)
|
2303 (03)
|
Var.(%)
|
% of (Total)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
|
Sales
|
|
Zinc,Leadand Silver
|
100
|
7262
|
8254
|
-12
|
99
|
27926
|
33120
|
-16
|
|
Wind Energy
|
0
|
23
|
27
|
-15
|
1
|
156
|
152
|
3
|
|
Total Reported Sales
|
100
|
7285
|
8281
|
-12
|
100
|
28082
|
33272
|
-16
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
-
|
|
Net Sales
|
100
|
7285
|
8281
|
-12
|
100
|
28082
|
33272
|
-16
|
|
PBIT
|
|
Zinc,Leadand Silver
|
100
|
2740
|
3309
|
-17
|
99
|
10307
|
14388
|
-28
|
|
Wind Energy
|
0
|
6
|
10
|
-40
|
1
|
82
|
95
|
-14
|
|
Total PBIT
|
100
|
2746
|
3319
|
-17
|
100
|
10389
|
14483
|
-28
|
|
Less : Interest
|
|
262
|
176
|
49
|
|
955
|
333
|
187
|
|
Add: Other un-allcoable
|
|
239
|
362
|
-34
|
|
873
|
1138
|
-23
|
|
PBT
|
100
|
2,723
|
3,505
|
-22
|
100
|
10,307
|
15,288
|
-33
|
|