Consolidated
net sales (including other operating income) of Hindustan Zinc has increased
11.65% to Rs 8130 crore on account of better metal volume and metal &
silver prices, further supported by a strong dollar and partly offset by lower
silver volume. It is up 8% q-o-q on account of better metal & silver prices
and favourable forex rates, partly offset by lower metal & silver volumes.
Sales
of Zinc,Leadand Silver segment has gone up 11.13% to Rs 7,848.00 crore
(accounting for 99.43% of total sales).
Sales of Wind Energy segment has gone down 8.16% to Rs 45.00 crore
(accounting for 0.57% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 20.96% to Rs
3,145.00 crore. PBIT of Zinc,Leadand
Silver segment rose 21.36% to Rs 3,119.00 crore (accounting for 99.17% of total
PBIT). PBIT of Wind Energy segment fell
13.33% to Rs 26.00 crore (accounting for 0.83% of total PBIT).
PBIT
margin of Zinc, Lead and Silver segment rose from 36.39% to 39.74%. PBIT margin of Wind Energy segment fell from
61.22% to 57.78%. Overall PBIT margin
rose from 36.56% to 39.85%.
Operating
profit margin has jumped from 45.96% to 48.54%, leading to 17.90% rise in
operating profit to Rs 3,946.00 crore.
Employee cost increased from 2.68% to 2.84%. Other expenses fell from 50.45% to 48.23%. Selling and administration expenses rose
from 11.75% to 11.93%. Power and Oil fuel
cost fell from 10.90% to 8.25%.
Zinc
cost of production before royalty (COP) for the quarter stood at US$ 1,107 (INR
92,375) per MT, lower by 7% (lower by 6% in INR terms) y-o-y on account of
softened coal and input commodity prices, better linkage coal availability and
better mined metal grades, further supported by operational efficiencies year
on year. It was up 5% (up by 6% in INR terms) sequentially in line with volume
and grade.
Other
income fell 4.96% to Rs 268 crore. PBIDT
rose 16.12% to Rs 4214 crore. Provision
for interest rose 17.43% to Rs 256 crore.
PBDT
rose 16.04% to Rs 3958 crore. Provision
for depreciation rose 5.37% to Rs 844 crore.
Profit
before tax grew 19.31% to Rs 3,114.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 769
crore, compared to Rs 646 crore.
Effective tax rate was 24.69% compared to 24.75%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 19.40% to Rs
2,345.00 crore.
Promoters’
stake was 64.92% as of 30 June 2024 ,compared to 64.92% as of 30 June 2023
. Promoters pledged stake was 99.04% as
of 30 June 2024 ,compared to 99.37% as of 30 June 2023.
Commenting on the
performance, Mr. Arun Misra, CEO, said:
“Hindustan Zinc has started the year on a strong note, recording highest ever
first quarter mined and refined metal production, leveraging strong metal
prices during the quarter. It also gives me immense pleasure to inform you that
we have expedited the commencement of our renewable energy power delivery with
the receipt of the first flow of RE power from Serentica 180 MW solar project
in May 2024. Further, we are set to accelerate our sustainability journey
through contribution towards economic prosperity & environmental
responsibility, and diversification by catering to high-end sectors responsibly
with our strategic partnerships for utilising waste streams for extracting
saleable products and supplying for next-generation nickel zinc batteries.
Further
expanding our zinc product portfolio in the world, we have launched Asia’s
first low carbon ‘green’ zinc, EcoZen, produced using renewable energy and
certified by a renowned global sustainability consulting firm for its life
cycle carbon footprint assessment. It boasts a carbon footprint of less than 1
tCO2e per tonne of Zinc produced, about 75% lower than the global average. We
strongly believe that we can create further value for the Company by ensuring
creation of separate verticals for the recycling and silver businesses in the
coming days.”
Mr. Sandeep Modi, CFO,
said: “Ascertaining
HZL’s global cost leadership, we have supressed the cost of production for the
quarter at $1,107 per tonne, clocking a figure lower than last three financial
years. With a holistic focus on operational cum financial excellence, we
expanded the margins during the quarter, along with a commendable increase in
the domestic primary zinc market share. I firmly believe that HZL has made its
shareholders proud by providing c.133% returns during the quarter, highest
amongst the large Indian companies, by the virtue of its positioning as the
largest integrated precious metal company, ESG leader and a company committed
for energy transition metals.”
Operational Performance
Mined
metal production for the quarter was 263 kt, recording the highest ever first
quarter production. It is up 2% y-o-y on account of improved mined metal
grades, and lower 12% q-o-q in line with mine preparation activities being
carried out every year in first quarter.
Refined
metal production recorded the highest ever first quarter production at 262 kt,
up 1% y-o-y. It is down 4% sequentially in line with the plant availability
& pyro operations on lead mode from June 2024. Refined zinc production for the
quarter was 211 kt, up 1% y-o-y & down 4% q-o-q.
Saleable
silver production for the quarter was 167 MT, down 7% y-o-y and 12% q-o-q in
line with lead metal production and WIP built up in the normal course of the
business, on account of pyro operations being run on lead mode from June 2024.
This WIP will be liquidated in the subsequent period
Full year results
analysis
Net
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, Lead and 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 98.35% 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 651
Hindustan Zinc : Consolidated
Results
|
Particulars
|
2406 (03)
|
2306 (03)
|
Var.(%)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
Net Sales
|
8,130
|
7,282
|
12
|
28,932
|
34,098
|
-15
|
OPM (%)
|
48.5
|
46.0
|
|
47.2
|
51.3
|
|
OP
|
3,946
|
3,347
|
18
|
13,656
|
17,506
|
-22
|
Other Inc.
|
268
|
282
|
-5
|
1,074
|
1,379
|
-22
|
PBIDT
|
4,214
|
3,629
|
16
|
14,730
|
18,885
|
-22
|
Interest
|
256
|
218
|
17
|
955
|
333
|
187
|
PBDT
|
3,958
|
3,411
|
16
|
13,775
|
18,552
|
-26
|
Depreciation
|
844
|
801
|
5
|
3,468
|
3,264
|
6
|
PBT
|
3,114
|
2,610
|
19
|
10,307
|
15,288
|
-33
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
PBT before EO
|
3,114
|
2,610
|
19
|
10,307
|
15,288
|
-33
|
EO Income
|
0
|
0
|
-
|
0
|
0
|
-
|
PBT after EO
|
3,114
|
2,610
|
19
|
10,307
|
15,288
|
-33
|
Taxation
|
769
|
646
|
19
|
2,548
|
4,777
|
-47
|
PAT
|
2,345
|
1,964
|
19
|
7,759
|
10,511
|
-26
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
Net profit
|
2,345
|
1,964
|
19
|
7,759
|
10,511
|
-26
|
EPS (Rs)*
|
#
|
#
|
|
18.4
|
24.9
|
|
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)
|
2406 (03)
|
2306 (03)
|
Var.(%)
|
% of (Total)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
Sales
|
Zinc,Leadand Silver
|
99
|
7848
|
7062
|
11
|
99
|
27926
|
33120
|
-16
|
Wind Energy
|
1
|
45
|
49
|
-8
|
1
|
156
|
152
|
3
|
Total Reported Sales
|
100
|
7893
|
7111
|
11
|
100
|
28082
|
33272
|
-16
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
-
|
Net Sales
|
|
7893
|
7111
|
11
|
|
28082
|
33272
|
-16
|
PBIT
|
Zinc,Leadand Silver
|
99
|
3119
|
2570
|
21
|
99
|
10307
|
14388
|
-28
|
Wind Energy
|
1
|
26
|
30
|
-13
|
1
|
82
|
95
|
-14
|
Total PBIT
|
100
|
3145
|
2600
|
21
|
100
|
10389
|
14483
|
-28
|
Less : Interest
|
|
256
|
218
|
17
|
|
955
|
333
|
187
|
Add: Other un-allcoable
|
|
225
|
228
|
-1
|
|
873
|
1138
|
-23
|
PBT
|
|
3114
|
2610
|
19
|
|
10307
|
15288
|
-33
|
|