|
Hindustan
Zinc consolidated net sales declined 3.27% to Rs 8509 crore in Q4FY23 compared
to Q4FY22 on account of lower zinc, lead & silver prices partly offset by
higher metal & silver volumes and favourable exchange rates. Sequentially,
revenue was up by 8.2%, led by improved metal & silver volumes coinciding
with higher zinc, lead & silver prices. Sales of Zinc,Leadand Silver
segment has gone down 3.88% to Rs 8,254.00 crore (accounting for 99.67% of
total sales). Sales of Wind Energy
segment has gone up 3.85% to Rs 27.00 crore (accounting for 0.33% of total
sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 21.43% to
Rs 3,319.00 crore. PBIT of Zinc,Leadand
Silver segment fell 21.48% to Rs 3,309.00 crore (accounting for 99.70% of total
PBIT). PBIT of Wind Energy segment fell
0.00% to Rs 10.00 crore (accounting for 0.30% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 49.07% to 40.09%. PBIT margin of Wind Energy segment fell from
38.46% to 37.04%. Overall PBIT margin
fell from 49.04% to 40.08%.
Zinc
cost of production before royalty (COP) for the quarter was Rs 99,824 per MT,
up 16.9% YoY and better by 6.0% sequentially. QoQ COP improvement was on
account of higher volumes, better grades, strong operational efficiencies,
supported by softened coal and input commodity prices.
Operating
profit margin has declined from 56.41% to 50.01%, leading to 14.25% decline in
operating profit to Rs 4,255.00 crore.
Employee cost increased from 2.12% to 2.49%. Other expenses rose from 42.91% to
48.95%. Selling and administration
expenses fell from 13.05% to 12.79%.
Power and Oil fuel cost rose from 8.52% to 9.61%.
Other
income rose 27.80% to Rs 354 crore.
PBIDT fell 12.03% to Rs 4609 crore.
Provision for interest rose 166.67% to Rs 176 crore.
PBDT
fell 14.31% to Rs 4433 crore. Provision
for depreciation rose 13.73% to Rs 928 crore.
Fixed assets increased to Rs 19,767.00 crore as of 31 March 2023 from Rs
19,240.00 crore as of 31 March 2022.
Intangible assets declined from Rs 231.00 crore to Rs 92.00 crore.
Profit
before tax down 19.55% to Rs 3,505.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 922
crore, compared to Rs 1429 crore.
Effective tax rate was 26.31% compared to 32.80%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 11.78% to Rs
2,583.00 crore.
Equity
capital stood at Rs 845.00 crore as of 31 March 2023 to Rs 845.00 crore as of
31 March 2022. Per share face Value
remained same at Rs 2.00.
Promoters’
stake was 64.92% as of 31 March 2023 ,compared to 64.92% as of 31 March 2022
. Promoters pledged stake was 87.59% as
of 31 March 2023 ,compared to 86.05% as of 31 March 2022.
Commenting on the
performance, Mr. Arun Misra, CEO, said: “By registering a historic high annual operational and
financial performance, it was undeniably a landmark year for Hindustan Zinc.
This year saw us accomplish the superlative milestone of crossing 1 million
tonne metal mark which is a true reflection of our persistent focus on volume
delivery and operational efficiency. I am happy to share that Hindustan Zinc is
now ranked as the 5th largest silver producer globally. Further, we are
progressing well on our strategic development projects directed towards
capacity expansion, synergetic growth, and value integration.
With
the mission of decarbonising our operations, we signed a Power Delivery
Agreement for sourcing up to 450MW renewable energy. This historic year,
Hindustan Zinc also flagged off India’s first Battery Electric Vehicle in
underground mining, adding the same to its ever-expanding EV fleet. These
significant developments corroborate our commitment to deliver on our ESG
roadmap of achieving net zero by 2050.”
Mr. Sandeep Modi, CFO,
said: “This year,
Hindustan Zinc surpassed its own records by delivering bestever financial
performance, recording its highest ever annual revenue, EBITDA and PAT. This
feat was attributable to our pioneering efforts towards operating efficiently
resulting in cost optimisation. Overall, the year has been characterized by
resilience and dynamism in decision making which enabled us to achieve the
annual guidance and generate record cash flows. We delivered the lowest
quarterly cost of this FY in Q4 and with our track record of strong and improving
performance, we are confident of delivering another stellar year.”
Operational Performance
Highest
ever quarterly mined metal production since UG transition at 301 kt, an
increase of 2.0% y-o-y and 18.6% sequentially owing to higher ore production
and improved mined metal grades. Highest ever annual mined metal production at
1,062 kt, a growth of 4.4% y-o-y, driven by higher ore production, improved
mined metal grades and operational efficiencies.
Historic-high
quarterly refined metal production at 269 kt, an increase of 3.4% y-o-y and
4.9% sequentially, owing to better plant and mined metal availability. Record
annual refined metal production at 1,032 kt, a growth of 6.7% y-o-y, resulting
from better plant availability and consistent MIC flow from mines.
Integrated
zinc production for the quarter was at 215 kt, an increase of 1.9% y-o-y and
2.3% sequentially. Integrated lead production for the quarter was at 54 kt, an
increase of 10.0% y-o-y and 16.9% sequentially, on account of better plant
availability and consistent MIC flow from mines. Best-ever full year integrated
zinc production at 821 kt, a growth of 5.8% y-o-y and integrated lead
production at 211 kt, a growth of 10.2% y-o-y.
Saleable
silver production for the quarter was at 182 MT, an increase of 12.5% y-o-y in
line with lead metal production and 13.4% sequentially in line with lead metal
production and higher WIP depletion in base period. Record annual saleable
silver production of 714 MT, a growth of 10.3% YoY in line with lead metal
production.
Full year results analysis
Net
sales (including other operating income) of Hindustan Zinc has increased 15.82%
to Rs 34098 crore led by improved zinc LME, metal & silver volumes, gains
from strategic hedging and favourable exchange rates while being partially
offset by lower lead & silver prices.
Sales of Zinc,Leadand Silver segment has gone up 15.71% to Rs 33,120.00
crore (accounting for 99.54% of total sales).
Sales of Wind Energy segment has gone down 8.43% to Rs 152.00 crore
(accounting for 0.46% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 7.24% to Rs
14,483.00 crore. PBIT of Zinc,Leadand
Silver segment rose 7.33% to Rs 14,388.00 crore (accounting for 99.34% of total
PBIT). PBIT of Wind Energy segment fell
5.00% to Rs 95.00 crore (accounting for 0.66% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 46.83% to 43.44%. PBIT margin of Wind Energy segment rose from
60.24% to 62.50%. Overall PBIT margin
fell from 46.91% to 43.53%.
Operating
profit margin has declined from 55.11% to 51.34%, leading to 7.90% rise in
operating profit to Rs 17,506.00 crore.
Employee cost increased from 2.42% to 2.47%. Other expenses rose from 42.99% to
46.41%. Selling and administration
expenses fell from 12.34% to 11.88%.
Power and Oil fuel cost rose from 8.25% to 10.84%.
Other
income rose 13.40% to Rs 1379 crore.
PBIDT rose 8.28% to Rs 18885 crore.
Provision for interest rose 14.83% to Rs 333 crore. Loan funds rose to Rs 11,881.00 crore as of
31 March 2023 from Rs 2,844.00 crore as of 31 March 2022. Inventories declined from Rs 1,953.00 crore
as of 31 March 2022 to Rs 1,862.00 crore as of 31 March 2023. Sundry debtors were lower at Rs 380.00 crore
as of 31 March 2023 compared to Rs 716.00 crore as of 31 March 2022. Cash and bank balance declined from Rs
5,763.00 crore as of 31 March 2022 to Rs 1,412.00 crore as of 31 March
2023. Investments declined from Rs 15,052.00
crore as of 31 March 2022 to Rs 10,107.00 crore as of 31 March 2023.
PBDT
rose 8.17% to Rs 18552 crore. Provision
for depreciation rose 11.90% to Rs 3264 crore.
Fixed assets increased to Rs 19,767.00 crore as of 31 March 2023 from Rs
19,240.00 crore as of 31 March 2022.
Intangible assets declined from Rs 231.00 crore to Rs 92.00 crore.
Profit
before tax grew 7.40% to Rs 15,288.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 4777
crore, compared to Rs 4471 crore.
Effective tax rate was 31.25% compared to 31.71%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 9.16% to Rs
10,511.00 crore.
Equity
capital stood at Rs 845.00 crore as of 31 March 2023 to Rs 845.00 crore as of
31 March 2022. Per share face Value
remained same at Rs 2.00.
Promoters’
stake was 64.92% as of 31 March 2023 ,compared to 64.92% as of 31 March 2022
. Promoters pledged stake was 87.59% as
of 31 March 2023 ,compared to 86.05% as of 31 March 2022 .
Cash
flow from operating activities increased to Rs 15,129.00 crore for year ended
March 2023 from Rs 12,691.00 crore for year ended March 2022. Cash flow used in acquiring fixed assets
during the year ended March 2023 stood at Rs 3,561.00 crore, compared to Rs
2,998.00 crore during the year ended March 2022.
The
scrip is currently trading at Rs 324
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Hindustan Zinc : Consolidated
Results
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Particulars
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2303 (03)
|
2203 (03)
|
Var.(%)
|
2303 (12)
|
2203 (12)
|
Var.(%)
|
|
Net Sales
|
8,509
|
8,797
|
-3
|
34,098
|
29,440
|
16
|
|
OPM (%)
|
50.0
|
56.4
|
|
51.3
|
55.1
|
|
|
OP
|
4,255
|
4,962
|
-14
|
17,506
|
16,225
|
8
|
|
Other Inc.
|
354
|
277
|
28
|
1,379
|
1,216
|
13
|
|
PBIDT
|
4,609
|
5,239
|
-12
|
18,885
|
17,441
|
8
|
|
Interest
|
176
|
66
|
167
|
333
|
290
|
15
|
|
PBDT
|
4,433
|
5,173
|
-14
|
18,552
|
17,151
|
8
|
|
Depreciation
|
928
|
816
|
14
|
3264
|
2917
|
12
|
|
PBT
|
3,505
|
4,357
|
-20
|
15288
|
14234
|
7
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
3505
|
4357
|
-20
|
15288
|
14234
|
7
|
|
EO Income
|
0
|
0
|
-
|
0
|
-134
|
-
|
|
PBT after EO
|
3505
|
4357
|
-20
|
15288
|
14100
|
8
|
|
Taxation
|
922
|
1429
|
-35
|
4777
|
4471
|
7
|
|
PAT
|
2583
|
2928
|
-12
|
10511
|
9629
|
9
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
2583
|
2928
|
-12
|
10511
|
9629
|
9
|
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EPS (Rs)*
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#
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#
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24.9
|
23.0
|
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Notes
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* EPS is on current equity of Rs 845.06 crore, Face value of Rs
2, Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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EO : Extraordinary items
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Figures in Rs crore
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Source: Capitaline Corporate Database
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Hindustan Zinc : Consolidated Segment Results
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% of (Total)
|
2303 (03)
|
2203 (03)
|
Var.(%)
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% of (Total)
|
2303 (12)
|
2203 (12)
|
Var.(%)
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|
Sales
|
|
Zinc,Leadand Silver
|
100
|
8,254
|
8,587
|
-4
|
100
|
33,120
|
28,624
|
16
|
|
Wind Energy
|
0
|
27
|
26
|
4
|
0
|
152
|
166
|
-8
|
|
Total Reported Sales
|
100
|
8,281
|
8,613
|
-4
|
100
|
33,272
|
28,790
|
16
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
-
|
|
Net Sales
|
100
|
8,281
|
8,613
|
-4
|
100
|
33,272
|
28,790
|
16
|
|
PBIT
|
|
Zinc,Leadand Silver
|
100
|
3,309
|
4,214
|
-21
|
99
|
14,388
|
13,405
|
7
|
|
Wind Energy
|
0
|
10
|
10
|
0
|
1
|
95
|
100
|
-5
|
|
Total PBIT
|
100
|
3,319
|
4,224
|
-21
|
100
|
14,483
|
13,505
|
7
|
|
Less : Interest
|
|
176
|
66
|
167
|
|
333
|
290
|
15
|
|
Add: Other un-allcoable
|
|
362
|
199
|
82
|
|
1,138
|
885
|
29
|
|
PBT
|
100
|
3,505
|
4,357
|
-20
|
100
|
15,288
|
14,100
|
8
|
|