|
Net
sales (including other operating income) of Hindustan Zinc has increased 21.51%
to Rs 8252 crore on account of better
metal & silver volumes and zinc & silver prices, further supported by a
strong dollar and marginally offset by lower lead prices. It is up 2% QoQ on
account of better lead & silver volumes, partly offset by lower zinc volume
and metal prices. For the half year, total revenue from operations stood at RS
16,382 crore, up 16% YoY on account of better metal volumes and zinc &
silver prices, further supported by a strong dollar and partly offset by lower
silver volume and lead prices.
Sales
of Zinc, Lead and Silver segment has gone up 21.31% to Rs 7,953.00 crore
(accounting for 99.36% of total sales).
Sales of Wind Energy segment has gone down 19.05% to Rs 51.00 crore
(accounting for 0.64% of total sales).
Zinc
cost of production before royalty (COP) for the quarter stood at US$ 1,071 (Rs
89,686) per tonne, lower by 6% (lower by 5% in Rs terms) YoY on account of
higher volume, better linkage coal availability, further supported by softened
coal and input commodity prices and operational efficiencies year on year. It
was lower by 3% (lower by 3% in Rs terms) sequentially in line with better
linkage coal availability, operational efficiencies and softened coal and input
commodity prices, further supported by better acid realisations. Zinc COP for
H1 FY25 was US$ 1,089 (Rs 91,034) per tonne, lower by 7% (lower by 5% in Rs
terms) YoY on account of higher volume, better grades & linkage coal
availability, further supported by softened coal and input commodity prices and
operational efficiencies year on year.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 42.26% to Rs
3,329.00 crore. PBIT of Zinc, Lead and
Silver segment rose 43.60% to Rs 3,297.00 crore (accounting for 99.04% of total
PBIT). PBIT of Wind Energy segment fell
27.27% to Rs 32.00 crore (accounting for 0.96% of total PBIT).
PBIT
margin of Zinc, Lead and Silver segment rose from 35.02% to 41.46%. PBIT margin of Wind Energy segment fell from
69.84% to 62.75%. Overall PBIT margin
rose from 35.35% to 41.59%.
Operating
profit margin has jumped from 46.22% to 49.96%, leading to 31.35% rise in
operating profit to Rs 4,123.00 crore.
Employee cost decreased from 3.12% to 2.31%. Other expenses fell from 50.96% to 46.65%. Selling
and administration expenses fell from 12.01% to 11.67%. Power and Oil fuel cost
fell from 9.69% to 8.69%.
Other
income rose 21.08% to Rs 270 crore.
PBIDT rose 30.67% to Rs 4393 crore.
Provision for interest rose 30.60% to Rs 303 crore. Loan funds rose to Rs 14,004.00 crore as of
30 September 2024 from Rs 11,541.00 crore as of 30 September 2023. Inventories declined from Rs 1,788.00 crore
as of 30 September 2023 to Rs 1,703.00 crore as of 30 September 2024. Sundry debtor were higher at Rs 270.00 crore
as of 30 September 2024 compared to Rs 216.00 crore as of 30 September
2023. Cash and bank balance declined
from Rs 586.00 crore as of 30 September 2023 to Rs 218.00 crore as of 30
September 2024. Investments declined
from Rs 11,074.00 crore as of 30 September 2023 to Rs 8,438.00 crore as of 30
September 2024.
PBDT
rose 30.67% to Rs 4090 crore. Provision
for depreciation rose 6.30% to Rs 877 crore.
Fixed assets increased to Rs 20,173.00 crore as of 30 September 2024
from Rs 19,867.00 crore as of 30 September 2023. Intangible assets increased from Rs 143.00 crore
to Rs 230.00 crore.
Profit
before tax grew 39.39% to Rs 3,213.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 803 crore,
compared to Rs 576 crore. Effective tax
rate was 25.65% compared to 24.99%.
Minority
interest was nil in both the periods.
Net profit attributable to owner of the company increased 34.59% to Rs
2,327.00 crore.
Equity
capital stood at Rs 845.00 crore as of 30 September 2024 to Rs 845.00 crore as
of 30 September 2023. Per share face
Value remained same at Rs 2.00.
Promoter’
stake was 63.42% as of 30 September 2024 ,compared to 64.92% as of 30 September
2023 . Promoter pledged stake was 95.42%
as of 30 September 2024 ,compared to 98.35% as of 30 September 2023.
Commenting on HZL’s
performance, Arun Misra, Chief Executive Officer, said: “Hindustan Zinc has continued to
gather momentum from its previous quarter to record historic highs in its
second quarter mined and refined metal production. Leveraging strong precious
metal prices, we have focused on maximizing our silver production through pyro
operations on lead mode, resulting in a 10% sequential increment in silver
volumes.
To
advance our net zero commitment, the Board approved the third round-the-clock
renewable energy delivery agreement with Serentica for 530 MW, totalling RE
power contribution to over 70% of the total power requirement. With an
objective to expand zinc applications, we have also signed an MoU with JNCASR,
a premier institute sponsored by the Department of Science and Technology, for
development work on next-gen zinc-based batteries.
The
quarter also witnessed multiple recognitions for HZL’s commitment towards
safety, across prestigious platforms like British Safety Council and All India
Mine Safety Awards, with our first all women underground mine rescue team being
recognized as world’s second-best women’s task force.”
Sandeep Modi, Chief
Financial Officer, said:
“During the quarter, Hindustan Zinc recorded a 6-quarter highest EBITDA and PAT
before exceptional items with a strong operational performance, supported by
favourable market conditions. Substantiating its drive towards continuing
operational excellence and global cost leadership, HZL recorded a significant
cost reduction of 7% YoY in the first half of the fiscal year, clocking a cost
of production of US $1,071 per tonne for the quarter. The execution of third
renewable power delivery agreement will further support the cost reduction and
its predictability. The company also registered an 8-quarter highest EBITDA
margin during the quarter, which clocked over 50% with a 450 bps YoY
improvement.”
Operational Performance
HZL
recorded its highest ever second quarter mined metal production at 256 kt, up
2% YoY on account of higher ore production at Zawar Mine, which was partly
offset by lower mined metal grade at SK Mine, and down 2% qo-q due to lower
overall mined metal grades. H1 FY25 mined metal production stood at an all-time
best figure of 519 kt, up 2% YoY with higher ore treatment and improved overall
mined metal grades.
HZL
recorded the highest ever second quarter refined metal production at 262 kt, up
8% YoY and flat sequentially in line with plant availability. For the half
year, it recorded the ever-best figure of 524 kt, up 5% y-oy in line with plant
availability. Refined zinc production was 198 kt, up 7% YoY and down 6%
sequentially. It was 409 kt for H1 FY25, up 4% yo-y. Refined lead production
for the quarter stood at 63 kt, up 12% YoY and 23% QoQ on account of pyro plant
operations on lead mode during the quarter. For the half year, it was up 7% YoY
at 115 kt.
Saleable
silver production for the quarter was 184 tonne, up 2% YoY. It was up 10% QoQ
on account of pyro plant operations on lead mode during the quarter partly
offset by lower silver output input from SK Mine. For the half year, it stood
at 350 tonne, down 3% YoY on account of lower silver input from SK Mine.
Projects Update
Progress
for the new 160 ktpa Roaster at Debari and the 510 ktpa Hindustan Zinc
Fertilisers Private Limited (HZFPL) project is on track with final
commissioning targeted by Q4 FY25 and Q2 FY26 respectively
Contract
for cellhouse debottlenecking has been awarded to L&T which will enhance
the metal capacity by 21 ktpa. Completion is targeted by Q2 FY26 for Dariba
Smelting Complex and Q3 FY26 for Chanderiya Lead Zinc Smelter
Site
work for Bamnia Kalan Mines is under progress
For year-to-date (YTD)
results analysis
Net
sales (including other operating income) of Hindustan Zinc has increased 16.41%
to Rs 16382 crore. Sales of Zinc, Lead and
Silver segment has gone up 16.03% to Rs 15,801.00 crore (accounting for 99.40%
of total sales). Sales of Wind Energy
segment has gone down 14.29% to Rs 96.00 crore (accounting for 0.60% of total
sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 31.05% to Rs
6,474.00 crore. PBIT of Zinc, Lead and
Silver segment rose 31.85% to Rs 6,416.00 crore (accounting for 99.10% of total
PBIT). PBIT of Wind Energy segment fell
21.62% to Rs 58.00 crore (accounting for 0.90% of total PBIT).
PBIT
margin of Zinc, Lead and Silver segment rose from 35.73% to 40.61%. PBIT margin of Wind Energy segment fell from
66.07% to 60.42%. Overall PBIT margin
rose from 35.98% to 40.72%.
Operating
profit margin has jumped from 46.09% to 49.26%, leading to 24.41% rise in
operating profit to Rs 8,069.00 crore.
Employee cost decreased from 2.89% to 2.58%. Other expenses fell from 50.70% to
47.44%. Selling and administration
expenses fell from 11.88% to 11.80%.
Power and Oil fuel cost fell from 10.30% to 8.47%.
Other
income rose 6.53% to Rs 538 crore. PBIDT
rose 23.12% to Rs 8607 crore. Provision
for interest rose 24.22% to Rs 559 crore.
Loan funds rose to Rs 14,004.00 crore as of 30 September 2024 from Rs
11,541.00 crore as of 30 September 2023.
Inventories declined from Rs 1,788.00 crore as of 30 September 2023 to Rs
1,703.00 crore as of 30 September 2024.
Sundry debtors were higher at Rs 270.00 crore as of 30 September 2024 compared
to Rs 216.00 crore as of 30 September 2023.
Cash and bank balance declined from Rs 586.00 crore as of 30 September
2023 to Rs 218.00 crore as of 30 September 2024. Investments declined from Rs 11,074.00 crore
as of 30 September 2023 to Rs 8,438.00 crore as of 30 September 2024.
PBDT
rose 23.04% to Rs 8048 crore. Provision
for depreciation rose 5.84% to Rs 1721 crore.
Fixed assets increased to Rs 20,173.00 crore as of 30 September 2024
from Rs 19,867.00 crore as of 30 September 2023. Intangible assets increased from Rs 143.00 crore
to Rs 230.00 crore.
Profit
before tax grew 28.73% to Rs 6,327.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 1572 crore,
compared to Rs 1222 crore. Effective tax
rate was 25.18% compared to 24.86%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 26.51% to Rs
4,672.00 crore.
Equity
capital stood at Rs 845.00 crore as of 30 September 2024 to Rs 845.00 crore as
of 30 September 2023. Per share face
Value remained same at Rs 2.00.
Promoters’
stake was 63.42% as of 30 September 2024 ,compared to 64.92% as of 30 September
2023 . Promoters pledged stake was 95.42%
as of 30 September 2024 compared to 98.35% as of 30 September 2023 .
Cash
flow from operating activities increased to Rs 7,214.00 crore for YTD ended
September 2024 from Rs 7,046.00 crore for YTD ended September 2023. Cash flow used in acquiring fixed assets
during the YTD ended September 2024 stood at Rs 1,986.00 crore, compared to Rs
1,994.00 crore during the YTD ended September 2023.
The
scrip is currently trading at Rs 507
|
Hindustan Zinc : Consolidated
Results
|
|
ParticulaRs
|
2409 (03)
|
2309 (03)
|
Var.(%)
|
2409 (06)
|
2309 (06)
|
Var.(%)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
|
Net Sales
|
8,252
|
6,791
|
22
|
16,382
|
14,073
|
16
|
28,932
|
34,098
|
-15
|
|
OPM (%)
|
50.0
|
46.2
|
|
49.3
|
46.1
|
|
47.2
|
51.3
|
|
|
OP
|
4,123
|
3,139
|
31
|
8,069
|
6,486
|
24
|
13,656
|
17,506
|
-22
|
|
Other Inc.
|
270
|
223
|
21
|
538
|
505
|
7
|
1,074
|
1,379
|
-22
|
|
PBIDT
|
4,393
|
3,362
|
31
|
8,607
|
6,991
|
23
|
14,730
|
18,885
|
-22
|
|
Interest
|
303
|
232
|
31
|
559
|
450
|
24
|
955
|
333
|
187
|
|
PBDT
|
4,090
|
3,130
|
31
|
8,048
|
6,541
|
23
|
13,775
|
18,552
|
-26
|
|
Depreciation
|
877
|
825
|
6
|
1,721
|
1,626
|
6
|
3,468
|
3,264
|
6
|
|
PBT
|
3,213
|
2,305
|
39
|
6,327
|
4,915
|
29
|
10,307
|
15,288
|
-33
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
3,213
|
2,305
|
39
|
6,327
|
4,915
|
29
|
10,307
|
15,288
|
-33
|
|
EO Income
|
-83
|
0
|
-
|
-83
|
0
|
-
|
0
|
0
|
-
|
|
PBT after EO
|
3,130
|
2,305
|
36
|
6,244
|
4,915
|
27
|
10,307
|
15,288
|
-33
|
|
Taxation
|
803
|
576
|
39
|
1,572
|
1,222
|
29
|
2,548
|
4,777
|
-47
|
|
PAT
|
2,327
|
1,729
|
35
|
4,672
|
3,693
|
27
|
7,759
|
10,511
|
-26
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
2,327
|
1,729
|
35
|
4,672
|
3,693
|
27
|
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)
|
2409 (03)
|
2309 (03)
|
Var.(%)
|
% of (Total)
|
2409 (06)
|
2309 (06)
|
Var.(%)
|
% of (Total)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Zinc,Leadand Silver
|
99
|
7953
|
6556
|
21
|
99
|
15801
|
13618
|
16
|
99
|
27926
|
33120
|
-16
|
|
Wind Energy
|
1
|
51
|
63
|
-19
|
1
|
96
|
112
|
-14
|
1
|
156
|
152
|
3
|
|
Total Reported Sales
|
100
|
8004
|
6619
|
21
|
100
|
15897
|
13730
|
16
|
100
|
28082
|
33272
|
-16
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
|
0
|
0
|
-
|
|
|
Net Sales
|
100
|
8004
|
6619
|
21
|
100
|
15897
|
13730
|
16
|
100
|
28082
|
33272
|
-16
|
|
PBIT
|
|
|
|
|
|
Zinc,Leadand Silver
|
99
|
3297
|
2296
|
44
|
99
|
6416
|
4866
|
32
|
99
|
10307
|
14388
|
-28
|
|
Wind Energy
|
1
|
32
|
44
|
-27
|
1
|
58
|
74
|
-22
|
1
|
82
|
95
|
-14
|
|
Total PBIT
|
100
|
3329
|
2340
|
42
|
100
|
6474
|
4940
|
31
|
100
|
10389
|
14483
|
-28
|
|
Less : Interest
|
|
303
|
232
|
31
|
|
559
|
450
|
24
|
|
955
|
333
|
187
|
|
Add: Other un-allcoable
|
|
104
|
197
|
-47
|
|
329
|
425
|
-23
|
|
873
|
1138
|
-23
|
|
PBT
|
100
|
3,130
|
2,305
|
36
|
100
|
6,244
|
4,915
|
27
|
100
|
10,307
|
15,288
|
-33
|
|