|
Consolidated
net sales (including other operating income) of Hindustan Zinc has declined
7.07% to Rs 7310 crore in Q3FY24 compared to Q3FY23. Sales of Zinc,Leadand Silver segment has gone
down 7.45% to Rs 7,046.00 crore (accounting for 99.70% of total sales). Sales of Wind Energy segment has gone up
40.00% to Rs 21.00 crore (accounting for 0.30% of total sales).
Revenue
from operations during the quarter was up 8% q-o-q on account of better zinc
& silver volumes, higher zinc prices and favourable exchange rates partly
offset by lower lead prices and volumes. The revenue witnessed a decline of 7%
y-o-y on account of significantly lower zinc prices, lower zinc volumes and
strategic hedging impact in base period partly offset by increased silver &
leads volumes and prices and favourable exchange rates.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 8.37% to Rs
2,703.00 crore. PBIT of Zinc,Leadand
Silver segment fell 8.10% to Rs 2,701.00 crore (accounting for 99.93% of total
PBIT). PBIT of Wind Energy segment fell
81.82% to Rs 2.00 crore (accounting for 0.07% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 38.61% to 38.33%. PBIT margin of Wind Energy segment fell from
73.33% to 9.52%. Overall PBIT margin
fell from 38.67% to 38.25%.
Operating
profit margin has jumped from 47.13% to 48.17%, leading to 5.02% decline in
operating profit to Rs 3,521.00 crore.
Employee cost increased from 2.42% to 2.68%. Other expenses fell from 50.14% to
49.47%. Selling and administration
expenses rose from 11.89% to 12.15%.
Power and Oil fuel cost fell from 12.84% to 9.83%.
Other
income fell 14.94% to Rs 296 crore.
PBIDT fell 5.87% to Rs 3817 crore.
Provision for interest rose 291.94% to Rs 243 crore.
PBDT
fell 10.49% to Rs 3574 crore. Provision
for depreciation rose 12.14% to Rs 905 crore.
Profit
before tax down 16.23% to Rs 2,669.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 641
crore, compared to Rs 1030 crore.
Effective tax rate was 24.02% compared to 32.33%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 5.94% to Rs
2,028.00 crore.
Promoters’
stake was 64.92% as of 31 December 2023 compared to 64.92% as of 31 December
2022. Promoters pledged stake was 99.37%
as of 31 December 2023 compared to 87.59% as of 31 December 2022.
Commenting on the
performance, Mr Arun Misra, CEO, said: “With our consistent focus on operational excellence,
Hindustan Zinc delivered record nine-months mined metal and silver production
to leverage the elevated silver price opportunities. The Company’s sustainable
operational progress is reflected in its industry leading compounded annual
production growth rate supplemented by safe practices. On sustainability front,
advancing towards our decarbonisation mission, Hindustan Zinc has initiated the
deployment of electric and LNG vehicles in its operations for inter-unit
movements and finished goods transportation, thereby reducing the Scope 3
emissions. I am also happy to report that Hindustan Zinc has been ranked
highest in the S&P Global Corporate Sustainability Assessment (CSA) 2023
among 238 companies with the score of 85 out of 100 under the metals and mining
sector, underscoring our dedication to sustainable and responsible mining
practices.”
Mr Sandeep Modi, CFO,
said: “This marks
Hindustan Zinc’s fourth consecutive quarter of consistent cost improvement and
the lowest cost in last 10 quarters. We continue to remain focused on cost
optimisation, operational efficiencies, working capital management, digital
improvements and shareholder value maximisation. During the quarter, Hindustan
Zinc has delivered steady margin of c.49%, bolstered by operational milestones
and cost reduction. The Company is now in the first decile of the global zinc
mining cost curve preserving its cost leadership globally and targets to
achieve its designed cost in the near future.”
Operational Performance
Mined
metal production for the quarter was 271 kt, up 8% sequentially and 7% y-o-y,
driven by higher ore production at Rampura Agucha and Sindesar Khurd mines,
further supplemented by improved mined metal grades year on year. 9M FY24 mined
metal production stood at 780 kt, up 2% y-o-y on account of improved mined
metal grades.
Refined
metal production for the quarter was 259 kt, up 7% sequentially and 1% y-o-y in
line with the plant availability. Refined metal production for 9M FY24 stood at
760 kt, flat y-o-y.
Integrated
zinc production for the quarter was 203 kt, up 10% sequentially and down 4%
y-o-y. Refined lead production for the quarter was 56 kt, down 1% sequentially
and up 21% y-o-y on account of pyro operations being operated on lead mode for
longer duration as compared to base period to maximize silver production. 9M
FY24 integrated zinc production stood at 597 kt, marginally down y-o-y, and
refined lead production was at 163 kt, up 4% y-o-y.
Saleable
silver production for the quarter was 197 MT, up 9% q-o-q and 22% y-o-y in line
with the lead metal production and higher accumulation of WIP in Q2 FY24. 9M
FY24 saleable silver production stood at 556 MT, up 5% y-o-y in line with lead
metal production.
For year-to-date (YTD)
results analysis
Net
sales (including other operating income) of Hindustan Zinc has declined 16.44%
to Rs 21383 crore on account of lower zinc prices and volumes and strategic
hedging impact in base period partly offset by better silver & lead volumes
and prices, and favourable exchange rates.
Sales of Zinc,Lead and Silver segment has gone down 16.90% to Rs
20,664.00 crore (accounting for 99.36% of total sales). Sales of Wind Energy segment has gone up
6.40% to Rs 133.00 crore (accounting for 0.64% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 31.54% to
Rs 7,643.00 crore. PBIT of Zinc,Leadand
Silver segment fell 31.70% to Rs 7,567.00 crore (accounting for 99.01% of total
PBIT). PBIT of Wind Energy segment fell
10.59% to Rs 76.00 crore (accounting for 0.99% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment fell from 44.55% to 36.62%. PBIT margin of Wind Energy segment fell from
68.00% to 57.14%. Overall PBIT margin
fell from 44.67% to 36.75%.
Operating
profit margin has declined from 51.78% to 46.80%, leading to 24.48% decline in
operating profit to Rs 10,007.00 crore.
Employee cost increased from 2.46% to 2.82%. Other expenses rose from 45.53% to
50.27%. Selling and administration
expenses rose from 11.57% to 11.97%.
Power and Oil fuel cost fell from 11.26% to 10.14%.
Other
income fell 21.85% to Rs 801 crore.
PBIDT fell 24.29% to Rs 10808 crore.
Provision for interest rose 341.40% to Rs 693 crore.
PBDT
fell 28.36% to Rs 10115 crore. Provision
for depreciation rose 8.35% to Rs 2531 crore.
Profit
before tax down 35.64% to Rs 7,584.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 1863
crore, compared to Rs 3855 crore.
Effective tax rate was 24.56% compared to 32.72%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 27.84% to Rs
5,721.00 crore.
Promoters’
stake was 64.92% as of 31 December 2023 compared to 64.92% as of 31 December
2022. Promoters pledged stake was 99.37%
as of 31 December 2023 compared to 87.59% as of 31 December 2022.
The
scrip is currently trading at Rs 315
|
Hindustan Zinc : Consolidated
Results
|
|
Particulars
|
2312 (03)
|
2212 (03)
|
Var.(%)
|
2312 (09)
|
2212 (09)
|
Var.(%)
|
2303 (12)
|
2203 (12)
|
Var.(%)
|
|
Net Sales
|
7,310
|
7,866
|
-7
|
21,383
|
25,589
|
-16
|
34,098
|
29,440
|
16
|
|
OPM (%)
|
48.2
|
47.1
|
|
46.8
|
51.8
|
|
51.3
|
55.1
|
|
|
OP
|
3,521
|
3,707
|
-5
|
10,007
|
13,251
|
-24
|
17,506
|
16,225
|
8
|
|
Other Inc.
|
296
|
348
|
-15
|
801
|
1,025
|
-22
|
1,379
|
1,216
|
13
|
|
PBIDT
|
3,817
|
4,055
|
-6
|
10,808
|
14,276
|
-24
|
18,885
|
17,441
|
8
|
|
Interest
|
243
|
62
|
292
|
693
|
157
|
341
|
333
|
290
|
15
|
|
PBDT
|
3,574
|
3,993
|
-10
|
10,115
|
14,119
|
-28
|
18,552
|
17,151
|
8
|
|
Depreciation
|
905
|
807
|
12
|
2531
|
2336
|
8
|
3264
|
2917
|
12
|
|
PBT
|
2,669
|
3,186
|
-16
|
7584
|
11783
|
-36
|
15288
|
14234
|
7
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
2669
|
3186
|
-16
|
7584
|
11783
|
-36
|
15288
|
14234
|
7
|
|
EO Income
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
-134
|
-
|
|
PBT after EO
|
2669
|
3186
|
-16
|
7584
|
11783
|
-36
|
15288
|
14100
|
8
|
|
Taxation
|
641
|
1030
|
-38
|
1863
|
3855
|
-52
|
4777
|
4471
|
7
|
|
PAT
|
2028
|
2156
|
-6
|
5721
|
7928
|
-28
|
10511
|
9629
|
9
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
2028
|
2156
|
-6
|
5721
|
7928
|
-28
|
10511
|
9629
|
9
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
24.9
|
23.0
|
|
|
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)
|
2312 (03)
|
2212 (03)
|
Var.(%)
|
% of (Total)
|
2312 (09)
|
2212 (09)
|
Var.(%)
|
% of (Total)
|
2303 (12)
|
2203 (12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Zinc,Leadand Silver
|
100
|
7046
|
7613
|
-7
|
99
|
20664
|
24866
|
-17
|
100
|
33120
|
28624
|
16
|
|
Wind Energy
|
0
|
21
|
15
|
40
|
1
|
133
|
125
|
6
|
0
|
152
|
166
|
-8
|
|
Total Reported Sales
|
100
|
7067
|
7628
|
-7
|
100
|
20797
|
24991
|
-17
|
100
|
33272
|
28790
|
16
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
|
0
|
0
|
-
|
|
|
Net Sales
|
100
|
7067
|
7628
|
-7
|
100
|
20797
|
24991
|
-17
|
100
|
33272
|
28790
|
16
|
|
PBIT
|
|
|
|
|
|
Zinc,Leadand Silver
|
100
|
2701
|
2939
|
-8
|
99
|
7567
|
11079
|
-32
|
99
|
14388
|
13405
|
7
|
|
Wind Energy
|
0
|
2
|
11
|
-82
|
1
|
76
|
85
|
-11
|
1
|
95
|
100
|
-5
|
|
Total PBIT
|
100
|
2703
|
2950
|
-8
|
100
|
7643
|
11164
|
-32
|
100
|
14483
|
13505
|
7
|
|
Less : Interest
|
|
243
|
62
|
292
|
|
693
|
157
|
341
|
|
333
|
290
|
15
|
|
Add: Other un-allcoable
|
|
209
|
298
|
-30
|
|
634
|
776
|
-18
|
|
1138
|
885
|
29
|
|
PBT
|
|
2,669.00
|
3,186.00
|
-16.23
|
|
7,584.00
|
11,783.00
|
-35.64
|
|
15,288.00
|
14,100.00
|
8.4
|
|