|
Hindustan
Zinc consolidated net sales has increased 43.73% to Rs 9387 crore led by higher
zinc volumes & zinc LME prices as well as favourable exchange rates while
partly offset by lower silver prices. Zinc LME prices and zinc metal sales
increased 34.2% and 10.2% respectively as compared to Q1 FY22. Sequentially
revenue increased 6.7%, primarily due to higher zinc LME, gain from strategic
hedging and higher lead & silver volumes which was partially offset by
lower zinc volumes and lower lead & silver prices. Sequentially lead and
silver sales volumes increased by 8.6% & 9.5% respectively.
Sales
of Zinc,Lead and Silver segment has gone up 45.11% to Rs 9,175.00 crore
(accounting for 99.34% of total sales).
Sales of Wind Energy segment has gone up 10.91% to Rs 61.00 crore
(accounting for 0.66% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) have jumped 56.20% to
Rs 4,583.00 crore. PBIT of Zinc,Leadand
Silver segment rose 56.93% to Rs 4,540.00 crore (accounting for 99.06% of total
PBIT). PBIT of Wind Energy segment rose
4.88% to Rs 43.00 crore (accounting for 0.94% of total PBIT).
PBIT
margin of Zinc, Lead and Silver segment rose from 45.75% to 49.48%. PBIT margin of Wind Energy segment fell from
74.55% to 70.49%. Overall PBIT margin
rose from 46.00% to 49.62%.
Operating
profit margin has jumped from 54.48% to 54.72%, leading to 44.38% rise in
operating profit to Rs 5,137.00 crore.
Employee cost decreased from 2.86% to 2.25%. Other expenses rose from 41.26% to
42.52%. Selling and administration
expenses rose from 11.37% to 11.44%.
Power and Oil fuel cost rose from 7.54% to 9.49%.
Other
income fell 11.17% to Rs 310 crore.
PBIDT rose 39.42% to Rs 5447 crore.
Provision for interest fell 52.17% to Rs 44 crore.
PBDT
rose 41.63% to Rs 5403 crore. Provision
for depreciation rose 11.09% to Rs 731 crore.
Profit
before EO grew 47.99% to Rs 4,672.00 crore.
The company reported nil EO items during the quarter compared to EO
expense of Rs 134 crore towards amount charged in respect of settlement of
entry tax dispute under Amnesty scheme launched by government of Rajasthan. PBT
after EO rose 55% to Rs 4672 crore.
Share
of profit/loss were nil in both the periods.
Provision for tax was expense of Rs 1580 crore, compared to Rs 1040
crore. Effective tax rate was 33.82%
compared to 34.40%.
Net
profit attributable to owners of the company increased 55.93% to Rs 3,092.00
crore on account of higher LME prices while being partially offset by the
rising input commodity prices..
Promoters’
stake was 64.92% as of 30 June 2022 compared to 64.92% as of 30 June 2021.
Promoters pledged stake was 86.05% as of 30 June 2022 compared to 22.83% as of
30 June 2021.
Commenting on the
performance, Mr Arun Misra, CEO, said: “Hindustan Zinc delivered best first-quarter production
for mined metal, refined metal & silver. With the exit run-rate for both
mined & refined metal crossing over one million tonnes, we are fully geared
to deliver another stellar performance this year. Board approval received for
setting-up of the Fertilizer plant & an additional Roaster is also a
welcome move. With such synergetic growth projects along the value chain, we
are confident to deliver long-lasting sustainable value for all stakeholders.”
Mr Sandeep Modi, Deputy
& Interim CFO, said: “Hindustan
Zinc touched a new milestone with highest ever quarterly Revenue, EBITDA and
Net Profit. Our proactive approach to cash in the opportunity from higher LME
through strategic hedging helped us to protect overall margin in an input
commodity inflationary environment. As a management team, we continue to
monitor the coal cost situation closely & all efforts are in place to
ensure security over the short term and reduce dependence on Thermal in the medium
to long term through right investments in renewable projects.”
Operational Performance
Mined
metal production for the quarter was at 252 kt, up 13.8% y-o-y on account of
higher ore production at Kayad, Sindesar Khurd, Rampura Agucha mines.
Sequentially, mined metal production saw a dip of 14.7% owing to lower ore
production at our mines and overall metal grades.
Integrated
metal production for the quarter was 260 kt, up 9.9% y-o-y, while remaining
almost flat sequentially. Quarterly integrated metal production was bolstered by
better plant & mined metal availability and was further supported by
improved operating parameters. Integrated zinc production was 206 kt, up 9.7%
y-o-y and sequentially was 2.4% lower. Integrated lead production for the
quarter was up 10.8% y-o-y and 9.2% sequentially to 54 kt on account of the
Pyro plant being operated in the Lead-mode for a part of the quarter and better
plant availability.
Integrated
silver production for the quarter was 177 MT, up 10.2% y-o-y and 9.4%
sequentially in line with lead metal production.
Full year results
analysis
Net
sales of Hindustan Zinc have increased 30.10% to Rs 29440 crore. Sales of
Zinc,Leadand Silver segment has gone up 30.51% to Rs 28,624.00 crore
(accounting for 99.42% of total sales).
Sales of Wind Energy segment has gone up 19.42% to Rs 166.00 crore
(accounting for 0.58% of total sales).
Operating
profit margin has jumped from 51.58% to 55.11%, leading to 39.01% rise in
operating profit to Rs 16,225.00 crore.
Employee cost decreased from 3.39% to 2.42%. Other expenses fell from 44.48% to
42.99%. Selling and administration
expenses rose from 12.32% to 12.34%.
Power and Oil fuel cost rose from 7.74% to 8.25%.
Other
income fell 33.15% to Rs 1216 crore.
PBIDT rose 29.28% to Rs 17441 crore.
Provision for interest fell 24.87% to Rs 290 crore. Loan funds declined from Rs 7,201.00 crore as
of 31 March 2021 to Rs 3,124.00 crore as of 31 March 2022. Inventories rose to Rs 1,953.00 crore as of
31 March 2022 from Rs 1,425.00 crore as of 31 March 2021. Sundry debtors were higher at Rs 716.00 crore
as of 31 March 2022 compared to Rs 406.00 crore as of 31 March 2021. Cash and bank balance declined from Rs 9,376.00
crore as of 31 March 2021 to Rs 5,763.00 crore as of 31 March 2022. Investments rose to Rs 15,052.00 crore as of
31 March 2022 from Rs 12,957.00 crore as of 31 March 2021 .
Profit
before interest, tax and other unallocable items (PBIT) has jumped 44.76% to Rs
13,505.00 crore. PBIT of Zinc,Leadand
Silver segment rose 44.90% to Rs 13,405.00 crore (accounting for 99.26% of
total PBIT). PBIT of Wind Energy segment
rose 28.21% to Rs 100.00 crore (accounting for 0.74% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment rose from 42.18% to 46.83%. PBIT margin of Wind Energy segment rose from
56.12% to 60.24%. Overall PBIT margin
rose from 42.27% to 46.91%.
PBDT
rose 30.87% to Rs 17151 crore. Provision
for depreciation rose 15.25% to Rs 2917 crore.
Fixed assets increased to Rs 19,240.00 crore as of 31 March 2022 from Rs
18,369.00 crore as of 31 March 2021. Intangible assets declined from Rs 361.00
crore to Rs 231.00 crore.
Profit
before EO grew 34.61% to Rs 14,234.00 crore. The company reported EO expense of
Rs 134 crore towards amount charged in respect of settlement of entry tax
dispute under Amnesty scheme launched by government of Rajasthan compared to
nil EO items during the quarter. PBT after EO was up 33% to Rs 14100 crore.
Provision
for tax was expense of Rs 4471 crore, compared to Rs 2594 crore. Effective tax rate was 31.71% compared to
24.53%.
Net
profit attributable to owners of the company increased 20.66% to Rs 9,629.00
crore.
Promoters’
stake was 64.92% as of 31 March 2022 compared to 64.92% as of 31 March 2021.
Promoters pledged stake was 86.05% as of 31 March 2022 compared to 22.83% as of
31 March 2021.
Cash
flow from operating activities increased to Rs 12,691.00 crore for year ended
March 2022 from Rs 10,567.00 crore for year ended March 2021. Cash flow used in
acquiring fixed assets during the year ended March 2022 stood at Rs 2,998.00
crore compared to Rs 2,481.00 crore during the year ended March 2021.
The
scrip is currently trading at Rs 283
|
Hindustan Zinc : Consolidated Results
|
|
Particulars
|
2206 (03)
|
2106 (03)
|
Var.(%)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Net Sales
|
9,387
|
6,531
|
44
|
29,440
|
22,629
|
30
|
|
OPM (%)
|
54.72
|
54.48
|
|
55.11
|
51.58
|
|
|
OP
|
5,137
|
3,558
|
44
|
16,225
|
11,672
|
39
|
|
Other Inc.
|
310
|
349
|
-11
|
1,216
|
1,819
|
-33
|
|
PBIDT
|
5,447
|
3,907
|
39
|
17,441
|
13,491
|
29
|
|
Interest
|
44
|
92
|
-52
|
290
|
386
|
-25
|
|
PBDT
|
5,403
|
3,815
|
42
|
17,151
|
13,105
|
31
|
|
Depreciation
|
731
|
658
|
11
|
2,917
|
2,531
|
15
|
|
PBT
|
4,672
|
3,157
|
48
|
14,234
|
10,574
|
35
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
4672
|
3157
|
48
|
14234
|
10574
|
35
|
|
EO Income
|
0
|
-134
|
-
|
-134
|
0
|
-
|
|
PBT after EO
|
4672
|
3023
|
55
|
14100
|
10574
|
33
|
|
Taxation
|
1580
|
1040
|
52
|
4471
|
2594
|
72
|
|
PAT
|
3092
|
1983
|
56
|
9629
|
7980
|
21
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
3092
|
1983
|
56
|
9629
|
7980
|
21
|
|
EPS (Rs)*
|
#
|
#
|
|
23.01
|
18.89
|
|
|
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)
|
2206 (03)
|
2106 (03)
|
Var.(%)
|
% of (Total)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Sales
|
|
Zinc,Leadand Silver
|
99
|
9,175.00
|
6,323.00
|
45
|
99
|
28,624.00
|
21,932.00
|
31
|
|
Wind Energy
|
1
|
61
|
55
|
11
|
1
|
166
|
139
|
19
|
|
Total Reported Sales
|
100
|
9,236.00
|
6,378.00
|
45
|
100
|
28,790.00
|
22,071.00
|
30
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
-
|
|
Net Sales
|
|
9,236.00
|
6,378.00
|
45
|
|
28,790.00
|
22,071.00
|
30
|
|
PBIT
|
|
Zinc,Leadand Silver
|
99
|
4,540.00
|
2,893.00
|
57
|
99
|
13,405.00
|
9,251.00
|
45
|
|
Wind Energy
|
1
|
43
|
41
|
5
|
1
|
100
|
78
|
28
|
|
Total PBIT
|
100
|
4,583.00
|
2,934.00
|
56
|
100
|
13,505.00
|
9,329.00
|
45
|
|
Less : Interest
|
|
44
|
92
|
-52
|
|
290
|
386
|
-25
|
|
Add: Other unallcoable
|
|
133
|
181
|
-27
|
|
885
|
1,631.00
|
-46
|
|
PBT
|
|
4,672.00
|
3,023.00
|
55
|
|
14,100.00
|
10,574.00
|
33
|
|