|
Hindustan
Zinc consolidated net sales increased 36.16% to Rs 8336 crore in Q2FY23
compared to Q2FY22 on account of higher refined metal & silver volumes,
gain from strategic hedging, zinc prices and favourable exchange rates partly
offset by lower lead and silver prices.
Sales of Zinc,Leadand Silver segment has gone up 37.01% to Rs 8,078.00
crore (accounting for 99.40% of total sales).
Sales of Wind Energy segment has gone down 20.97% to Rs 49.00 crore
(accounting for 0.60% of total sales).
Sequentially
revenue witnessed a decline of 11.2%, primarily due to lower zinc prices &
volume and lower lead & silver prices while being offset by gain from
strategic hedging, favourable exchange rate and improved lead & silver
volumes. Sequentially lead and silver sales volumes increased by 6.0% &
9.1% respectively.
Operating
profit margin has declined from 54.48% to 52.87%, leading to 32.14% rise in
operating profit to Rs 4,407.00 crore.
Employee cost increased from 2.62% to 2.74%. Other expenses fell from 45.38% to
44.57%. Selling and administration
expenses fell from 12.97% to 11.41%.
Power and Oil fuel cost rose from 7.81% to 11.75%.
Other
income rose 18.01% to Rs 367 crore.
PBIDT rose 30.94% to Rs 4774 crore.
Provision for interest fell 37.80% to Rs 51 crore.
PBDT
rose 32.52% to Rs 4723 crore. Provision
for depreciation rose 13.68% to Rs 798 crore.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 36.40% to Rs
3,631.00 crore. PBIT of Zinc,Leadand
Silver segment rose 37.51% to Rs 3,600.00 crore (accounting for 99.15% of total
PBIT). PBIT of Wind Energy segment fell
29.55% to Rs 31.00 crore (accounting for 0.85% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment rose from 44.40% to 44.57%. PBIT margin of Wind Energy segment fell from
70.97% to 63.27%. Overall PBIT margin
fell from 44.68% to 44.68%.
Profit
before tax grew 37.14% to Rs 3,925.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 1245
crore, compared to Rs 845 crore.
Effective tax rate was 31.72% compared to 29.52%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 32.87% to Rs
2,680.00 crore on account of higher zinc volumes & prices, gain from
strategic hedging, and favourable exchange rates while being partially offset
by the rising input commodity prices and lower lead and silver prices.
Sequentially Net Profit for the quarter was 13.3% lower on account of lower
metal production and lower zinc & silver prices being partially offset by
strategic hedging gains and favourable exchange rates.
Promoters’
stake was 64.92% as of 30 September 2022 compared to 64.92% as of 30 September
2021. Promoters pledged stake was 86.05%
as of 30 September 2022 compared to 22.83% as of 30 September 2021.
Commenting on the
performance, Mr Arun Misra, CEO, said:
“Our world-class mining assets backed with our zeal for operational excellence
has enabled us to deliver consistent results in the toughest of circumstances.
We have further accelerated our digitalisation efforts to aid in our business
efficiency & safety. With last twelve months run-rate for both mined &
refined metal comfortably sustaining above one million tonnes, we are fully
geared to deliver another stellar performance this year. In-line with our
commitment to net zero by 2050, I am happy to share that we have signed a Power
Delivery Agreement for sourcing up to 200 MW renewable energy, which will avoid
1.2 million MT of carbon emission.”
Mr Sandeep Modi, Deputy
& Interim CFO, said:
“We continue to maintain our cost leadership in the global zinc cost curve
despite spiralling energy prices and mounting inflationary pressures. With our
proactive investments in automation & digitalisation along with razor sharp
focus on cost optimisation initiatives & improvement in overall
efficiencies, we are confident to deliver superior returns to our
shareholders.”
Operational Performance
Mined
metal production for the quarter was at 255 kt, up 2.8% y-o-y on account of
better grades and improved mill recoveries. On a sequential basis mined metal
production grew by 1.4% largely on account of better grades. Overall H1 FY23
mined metal production was 507 kt, an increase of 8.0% y-o-y owing to increased
ore production, further supported by better grades and improved operational
efficiencies.
Integrated
metal production for the quarter was 246 kt, up 17.5% y-o-y, in line with
improved smelter performance, better mined metal availability and base impact
due to extended maintenance shutdown during the same period last year. On a
sequential basis, integrated metal production witnessed a decrease of 5.5% due to
lower roaster availability on account of the breakdown of an acid storage tank
at the Chanderiya plant during Q2 FY23 and the time taken in ramp up of
production post maintenance. Overall H1 FY23 integrated metal production was
506 kt, a growth of 13.5% y-o-y, resulting from consistent mined metal flow
from mines and better plant availability partly offset by acid storage tank
breakdown at Chanderiya plant in Q2 FY23.
Integrated
zinc production for the quarter was 189 kt, up 16.4% as compared to Q2 FY22 and
was 8.3% lower sequentially. For H1 FY23, integrated zinc production was at 395
kt a 12.8% increase as compared to H1 FY22. Integrated lead production for the
quarter was up 21.5% y-o-y and 5.3% sequentially to 57 kt on account of the Pyro
plant being operated in the Lead-mode for a part of the quarter and better
plant availability. For H1 FY23, integrated lead production at 110 kt was up
16.1% y-o-y. Integrated silver production for the quarter was up 27.6% y-o-y
and 9.5% sequentially at 194 MT in line with lead metal production and WIP
liquidation. For H1 FY23, integrated silver production was up 18.6% y-o-y to
371 MT in line with lead metal production.
For year-to-date (YTD)
results analysis
Net
sales (including other operating income) of Hindustan Zinc has increased 40.07%
to Rs 17723 crore. Sales of Zinc,Leadand
Silver segment has gone up 41.20% to Rs 17,253.00 crore (accounting for 99.37%
of total sales). Sales of Wind Energy segment has gone down 5.98% to Rs 110.00
crore (accounting for 0.63% of total sales).
Operating
profit margin has declined from 54.48% to 53.85%, leading to 38.46% rise in
operating profit to Rs 9,544.00 crore.
Employee cost decreased from 2.74% to 2.48%. Other expenses rose from 43.33% to
43.49%. Selling and administration
expenses fell from 12.18% to 11.42%.
Power and Oil fuel cost rose from 7.68% to 10.56%.
Other
income rose 2.58% to Rs 677 crore. PBIDT
rose 35.32% to Rs 10221 crore. Provision
for interest fell 45.40% to Rs 95 crore.
PBDT
rose 37.23% to Rs 10126 crore. Provision
for depreciation rose 12.43% to Rs 1529 crore.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 46.78% to Rs
8,214.00 crore. PBIT of Zinc,Leadand
Silver segment rose 47.70% to Rs 8,140.00 crore (accounting for 99.10% of total
PBIT). PBIT of Wind Energy segment fell
12.94% to Rs 74.00 crore (accounting for 0.90% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment rose from 45.10% to 47.18%. PBIT margin
of Wind Energy segment fell from 72.65% to 67.27%. Overall PBIT margin rose from 45.36% to
47.31%.
Profit
before tax grew 42.83% to Rs 8,597.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 2825
crore, compared to Rs 1885 crore.
Effective tax rate was 32.86% compared to 32.03%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 44.30% to Rs
5,772.00 crore.
Promoters’
stake was 64.92% as of 30 September 2022 ,compared to 64.92% as of 30 September
2021.Promoters pledged stake was 86.05% as of 30 September 2022 ,compared to
22.83% as of 30 September 2021.
The
scrip is currently trading at Rs 281
|
Hindustan Zinc : Consolidated Results
|
|
Particulars
|
2209 (03)
|
2109 (03)
|
Var.(%)
|
2209 (06)
|
2109 (06)
|
Var.(%)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Net Sales
|
8,336
|
6,122
|
36
|
17,723
|
12,653
|
40
|
29,440
|
22,629
|
30
|
|
OPM (%)
|
52.9
|
54.5
|
|
53.9
|
54.5
|
|
55.1
|
51.6
|
|
|
OP
|
4,407
|
3,335
|
32
|
9,544
|
6,893
|
38
|
16,225
|
11,672
|
39
|
|
Other Inc.
|
367
|
311
|
18
|
677
|
660
|
3
|
1,216
|
1,819
|
-33
|
|
PBIDT
|
4,774
|
3,646
|
31
|
10,221
|
7,553
|
35
|
17,441
|
13,491
|
29
|
|
Interest
|
51
|
82
|
-38
|
95
|
174
|
-45
|
290
|
386
|
-25
|
|
PBDT
|
4,723
|
3,564
|
33
|
10,126
|
7,379
|
37
|
17,151
|
13,105
|
31
|
|
Depreciation
|
798
|
702
|
14
|
1529
|
1360
|
12
|
2917
|
2531
|
15
|
|
PBT
|
3,925
|
2,862
|
37
|
8597
|
6019
|
43
|
14234
|
10574
|
35
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
3925
|
2862
|
37
|
8597
|
6019
|
43
|
14234
|
10574
|
35
|
|
EO Income
|
0
|
0
|
-
|
0
|
-134
|
-
|
-134
|
0
|
-
|
|
PBT after EO
|
3925
|
2862
|
37
|
8597
|
5885
|
46
|
14100
|
10574
|
33
|
|
Taxation
|
1245
|
845
|
47
|
2825
|
1885
|
50
|
4471
|
2594
|
72
|
|
PAT
|
2680
|
2017
|
33
|
5772
|
4000
|
44
|
9629
|
7980
|
21
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
2680
|
2017
|
33
|
5772
|
4000
|
44
|
9629
|
7980
|
21
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
23.0
|
18.9
|
|
|
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)
|
2209 (03)
|
2109 (03)
|
Var.(%)
|
% of (Total)
|
2209 (06)
|
2109 (06)
|
Var.(%)
|
% of (Total)
|
2203 (12)
|
2103 (12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Zinc,Leadand Silver
|
99
|
8,078
|
5,896
|
37
|
99
|
17,253
|
12,219
|
41
|
99
|
28,624
|
21,932
|
31
|
|
Wind Energy
|
1
|
49
|
62
|
-21
|
1
|
110
|
117
|
-6
|
1
|
166
|
139
|
19
|
|
Total Reported Sales
|
100
|
8,127
|
5,958
|
36
|
100
|
17,363
|
12,336
|
41
|
100
|
28,790
|
22,071
|
30
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
|
0
|
0
|
-
|
|
|
Net Sales
|
100
|
8,127
|
5,958
|
36
|
100
|
17,363
|
12,336
|
41
|
100
|
28,790
|
22,071
|
30
|
|
PBIT
|
|
|
|
|
|
Zinc,Leadand Silver
|
99
|
3,600
|
2,618
|
38
|
99
|
8,140
|
5,511
|
48
|
99
|
13,405
|
9,251
|
45
|
|
Wind Energy
|
1
|
31
|
44
|
-30
|
1
|
74
|
85
|
-13
|
1
|
100
|
78
|
28
|
|
Total PBIT
|
100
|
3,631
|
2,662
|
36
|
100
|
8,214
|
5,596
|
47
|
100
|
13,505
|
9,329
|
45
|
|
Less : Interest
|
|
51
|
82
|
-38
|
|
95
|
174
|
-45
|
|
290
|
386
|
-25
|
|
Add: Other un-allcoable
|
|
345
|
282
|
22
|
|
478
|
463
|
3
|
|
885
|
1,631
|
-46
|
|
PBT
|
100
|
3,925
|
2,862
|
37
|
100
|
8,597
|
5,885
|
46
|
100
|
14,100
|
10,574
|
33
|
|