The following release was issued today by Vedanta Limited's
subsidiary Hindustan Zinc Limited.
MUMBAI, April 20, 2017 /PRNewswire/ --
Operational Highlights - FY 2017
- Record mined metal production of 907kt against 889kt a year
ago; in-line with guidance
- Record integrated silver production of 453 MT, up 7% from previous year
- Total R&R of 404.4 million MT, a net addition of 14.5
million MT
Operational Highlights – Q4 FY 2017
- Record mined metal production at 312kt; up 66% y-o-y and 13%
q-o-q
- Record integrated silver production at 139 MT; up 14% y-o-y and 18% q-o-q
- Integrated zinc-lead metal production at all-time high of
260kt; up 35% y-o-y and 6% q-o-q
Financials
- Record EBITDA at Rs. 3,770 Crore
for the quarter and Rs. 9,734 Crore
for FY 2017; up 190% and 46% respectively y-o-y
- Record Net Profit at 3,057 Crore
for the quarter and Rs. 8,316 Crore
for FY 2017; up 42% and 2% respectively y-o-y
- In view of the special interim dividend declared in
March 2017, no final dividend is
recommended.
Hindustan Zinc Limited today announced its results for the
fourth quarter and full year ended March 31,
2017.
Mr. Agnivesh Agarwal, Chairman –
"The year 2016-17 has been record breaking for Hindustan Zinc
in many ways. The Company returned Rs. 27,157 Crore (including dividend distribution
tax) to shareholders in the 12 months ending March 31, 2017, a record in Indian corporate
history. I am also pleased to see the Company's record contribution
to Government treasury (including royalties, taxes and dividends)
of Rs. 17,760 Crore. The record
performance of the Company, supported by strong zinc prices, has
helped Hindustan Zinc generate unparalleled value for its
stakeholders during the year."
Financial Summary
(In Rs. Crore, except as stated)
Particulars
|
Q4
|
Q3
|
Financial Year
ended 31 March
|
2017
|
2016
|
Change
|
2016
|
Change
|
2017
|
2016
|
Change
|
Gross Sales/Income
from Operations
|
|
|
|
|
|
|
|
|
Zinc
|
5,160
|
2,238
|
131%
|
4,120
|
25%
|
13,902
|
11,096
|
25%
|
Lead
|
858
|
600
|
43%
|
649
|
32%
|
2,343
|
2,079
|
13%
|
Silver
|
563
|
437
|
29%
|
483
|
17%
|
1,888
|
1,501
|
26%
|
Others
|
118
|
124
|
-5%
|
96
|
23%
|
509
|
565
|
-10%
|
Total
|
6,699
|
3,399
|
97%
|
5,348
|
25%
|
18,642
|
15,241
|
22%
|
EBITDA
|
3,770
|
1,301
|
190%
|
2,757
|
37%
|
9,734
|
6,667
|
46%
|
Profit After
Taxes
|
3,057
|
2,147
|
42%
|
2,320
|
32%
|
8,316
|
8,175
|
2%
|
Earnings per Share
(Rs.)
|
7.23
|
5.08
|
42%
|
5.49
|
32%
|
19.68
|
19.35
|
2%
|
Mined Metal
Production ('000 MT)
|
312
|
188
|
66%
|
276
|
13%
|
907
|
889
|
2%
|
Refined Metal
Production ('000 MT)
|
|
|
|
|
|
|
|
|
Integrated Refined
Metal
|
|
|
|
|
|
|
|
|
Zinc
|
215
|
154
|
39%
|
205
|
4%
|
670
|
759
|
-12%
|
Saleable
Lead[1]
|
45
|
38
|
17%
|
39
|
16%
|
139
|
140
|
-1%
|
Zinc &
Lead
|
260
|
193
|
35%
|
244
|
6%
|
809
|
899
|
-10%
|
Saleable
Silver[2],[3]
(in MT)
|
139
|
122
|
14%
|
118
|
18%
|
453
|
422
|
7%
|
Total Refined
Metal
|
|
|
|
|
|
|
|
|
Zinc
|
215
|
154
|
39%
|
205
|
4%
|
672
|
759
|
-11%
|
Saleable
Lead[1]
|
45
|
38
|
17%
|
39
|
16%
|
139
|
145
|
-4%
|
Zinc &
Lead
|
260
|
193
|
35%
|
244
|
6%
|
811
|
904
|
-10%
|
Saleable
Silver[2],[3]
(in MT)
|
139
|
122
|
14%
|
118
|
18%
|
453
|
425
|
7%
|
Wind Power (in
million units)
|
75
|
62
|
21%
|
53
|
42%
|
448
|
415
|
8%
|
Zinc CoP without
Royalty (Rs. / MT) [4]
|
53,226
|
58,076
|
-8%
|
58,067
|
-8%
|
55,679
|
52,651
|
6%
|
Zinc CoP without
Royalty ( $ / MT)
|
794
|
853
|
-7%
|
861
|
-8%
|
830
|
804
|
3%
|
Zinc LME ($ /
MT)
|
2,770
|
1,679
|
65%
|
2,517
|
10%
|
2,364
|
1,829
|
29%
|
Lead LME ($ /
MT)
|
2,269
|
1,744
|
30%
|
2,149
|
6%
|
2,003
|
1,768
|
13%
|
Silver LBMA ($ /
oz.)
|
17.6
|
14.9
|
19%
|
17.2
|
2%
|
17.9
|
15.2
|
17%
|
USD-INR
(average)
|
67.1
|
67.5
|
-1%
|
67.5
|
-1%
|
67.1
|
65.5
|
2%
|
(1) Excluding captive consumption of 1,633
MT in Q4 FY2017 as compared with 909
MT in corresponding prior period and 1,731 MT in previous
quarter. For full year, it was 5,285 MT as compared with 6,657 MT a
year ago.
(2) Excluding captive consumption of 8.7 MT in Q4
FY2017 as compared with 4.7 MT in corresponding prior period and
8.9 MT in previous quarter. For full year, it was 27.4 MT as
compared with 34.5 MT a year ago.
(3) Silver occurs in Lead & Zinc ore and is
recovered in the smelting and silver-refining processes.
(4) The COP numbers are after adjusting for
deferred mining expenses under Ind-AS. Without this adjustment,
Zinc CoP per MT would have been Rs. 48,467 ($723) as compared with Rs. 58,044 ($853) in Q4 FY 2016 and Rs. 50,277 ($745) in Q3 FY 2017. For full year this would be
Rs. 55,879 ($833) compared to Rs.
52,646 ($804) a year
ago.
Note: Numbers may not add up due to rounding off; historical
numbers may have changed due to regrouping
Operational Performance
The Company achieved highest ever mined metal production during
the quarter, up 13% from previous quarter and 66% y-o-y. The
increase was on account of higher volumes from Rampura Agucha open
cast mine, in line with the mine plan and as per the guidance of
higher production in H2 FY 2017. Mined metal production during the
full year period was at 907kt, up 2% y-o-y in line with guidance.
Production from underground mines ramped up significantly during
the year to achieve a substantial 44% y-o-y increase in ore
production and 32% y-o-y increase in mined metal production.
Integrated zinc metal production during the quarter was at
215kt, up 5% q-o-q and 40% y-o-y. Integrated saleable lead metal
production during the quarter was the highest ever at 45kt, up 15%
q-o-q and 18% y-o-y. The increase was in line with availability of
mined metal, supported by enhanced smelter efficiencies. Total
integrated zinc-lead metal production was at an all-time high of
260kt. Integrated saleable silver production during the quarter was
also a record at 139 MT, up 18% q-o-q
and 14% y-o-y due to higher grades and volume from Sindesar Khurd
mine.
For the full year, integrated zinc metal production was lower by
12% at 670kt and integrated lead metal production was flat at
139kt. This was on account of low availability of mined metal in H1
due to the cyclical pattern of the Rampura Agucha open cast mine.
Highest ever integrated silver production was achieved during the
year at 453 MT, up 7% from a year ago
driven by higher volumes from Sindesar Khurd mine. Substantially
higher mined metal production in H2 resulted in accretion to
inventory, of which 26kt was sold during the quarter, leaving 80kt
closing stock at year end which will get converted into refined
metal in FY2018.
Financial Performance
Revenues during the quarter were Rs. 6,699 Crore, up 97% y-o-y on account of strong
zinc, lead & silver prices, higher production and sale of mined
metal. For the full year, revenues were up by 22% at Rs.
18,642 Crore primarily on account of
higher LME & silver prices and sale of mined metal in Q4,
partly offset by lower zinc volume.
The zinc metal cost of production per MT before royalty (COP)
during the quarter was at Rs. 53,226 ($794), lower by 8% y-o-y (7% in dollar terms).
The decrease was due to higher production volumes from Rampura
Agucha open cast mine in accordance with mine plan resulting in
higher average grades, better smelter efficiencies and reversal of
some liabilities. This was partly offset by higher coal & input
commodity prices, lower acid realisation and higher mine
development. For the full year, zinc COP was Rs. 55,679
($830), up 6% (3% in dollar terms)
from a year ago on account of lower integrated production, higher
coal & input commodity prices, lower average grades and lower
by-product credit.
The above revenue and cost of production resulted in a 190%
y-o-y increase in EBITDA during the quarter to Rs. 3,770 Crore and 46% increase for full year to Rs.
9,734 Crore.
During the quarter, net profit increased by 42% y-o-y to Rs.
3,057 Crore while for full year it
increased by 2% to Rs. 8,316 Crore.
The impact of higher EBITDA was partly offset by higher tax, higher
depreciation and lower mark to market gains on a smaller investment
corpus.
Dividend
On March 22, 2017, the Board of
Directors declared a special interim dividend of 1375% i.e. Rs.
27.50 per share on share of Rs. 2 each. Together, with the Golden
Jubilee dividend paid in April 2016
and the interim dividend paid in October
2016, the aggregate dividend outflow by the Company during
this financial year was Rs. 27,157
Crore including DDT, which is the largest dividend outflow
by any company in India in a
single financial year. In view of the special interim dividend paid
earlier this month, no final dividend is recommended.
Expansion Projects
Total mine development, across all mines, increased by 3% q-o-q
and 19% y-o-y to 19,159 meters during the quarter. During the year,
total mine development reached 66,545 meters, up 15% from a year
ago.
Rampura Agucha underground mine achieved an all-time high mine
development of 5,309 meters during the quarter after continuously
crossing the 4,000 meters benchmark for four quarters in a row.
During the year, Rampura Agucha underground mine produced 1.4
million MT of ore as compared with 0.2 million MT a year ago. The
south ventilation shaft sinking was completed during the quarter;
the main shaft sinking having reached the ultimate depth of 955
metres in the previous quarter. Further, cold commissioning of both
production & service winders was completed during the quarter
as shaft equipping work continues to progress satisfactorily.
Sindesar Khurd mine achieved record ore production of 3.7
million MT during the year. The winder foundation work for the
shaft was completed during the quarter and head gear erection is
nearing completion. The new mill of 1.5 mtpa capacity was completed
in record 14 months and commissioned during the quarter. Sindesar
Khurd mine plans to reach the targeted capacity of 4.5 million MT
ahead of schedule in the current year itself.
Zawar mine also achieved record ore production of 1.8 million MT
during the year. Environmental clearance of 4 mtpa ore production
and beneficiation was received in January following which consent
to establish and operate was also received. Zawar mill expansion to
2.5 mtpa and associated power up-gradation project are at advanced
stages with completion planned in June
2017.
The fumer project, which has been undertaken to further improve
metal recoveries from the hydro plant, is progressing well with
scheduled completion in mid FY 2019.
During the quarter, the Company successfully commissioned 16 MW
of captive solar farms at a capex of Rs. 82
Crore. This project will help the Company partly meet its
renewable power obligation and has been set up on waste
lands.
Reserve and Resource
During the year, net addition of 14.5 million MT were made to
reserve and resource (R&R), adding further to our R&R.
Total R&R at March 31, 2017 were
404.4 million MT containing 36.09 million MT of zinc-lead metal and
1,032 Moz of silver. Overall mine life continues to be 25+
years.
Outlook
PROJECTS: When the mining expansion projects were announced in
early 2013, share of mined metal from underground mines was 15%,
which increased to 52% in FY 2017 and is expected to reach 80% in
FY 2018 before being 100% in FY 2019. This is a testimony to the
Company's smooth transition from open cast mining to underground
mining. During these four years, the dollar COP (excluding royalty)
has remained stable.
The mining projects should complete in FY 2020 when the full
capacity of 1.2 million MT of mined metal is expected to be in
place. Both, the Rampura Agucha and Sindesar Khurd shafts are on
track for completion in FY 2019.
The capex on the on-going mine expansion projects, fumer and
smelter de-bottlenecking will be around $350-360 million in FY 2018.
PRODUCTION: In FY 2018, mined metal production is expected to be
higher from FY 2017. Refined zinc-lead metal production will be
around 950kt, which will be evenly spread through the year. Silver
production will be over 500 MT.
FINANCIAL: Dollar COP (excluding royalty) is expected to be
marginally higher based on current levels of coal & input
commodity prices. Treasury income is expected to be lower due to
reduction in investment corpus and current softening in rates while
tax rate for FY 2018 is expected to be slightly higher than
MAT.
Liquidity and investment
The Company's net cash and cash equivalents was Rs. 16,065 Crore as at March
31, 2017 which is excluding Rs. 7,908
Crore of short term commercial paper raised to meet the
special interim dividend fund requirement for tax efficiencies. The
gross investments were Rs. 23,972
Crore in high quality debt instruments including Rs.
19,336 Crore in mutual funds and Rs.
4,446 Crore in bonds.
Earnings Call on Thursday, April 20,
2017 at 4:00 pm (IST)
The Company will hold an earnings conference call on
Thursday, April 20, 2017 at
4:00 pm IST, where senior management
will discuss the Company's results and performance. The dial in
numbers for the call is:
Dial In: +91-22-3960-0762
For further information, please contact:
Ekta Singh
Manager
Investor Relations
Hindustan Zinc Limited
hzl.ir@vedanta.co.in
Tel: +91-800-3099676
Pavan Kaushik
Associate Vice President
Corporate Communications
Hindustan Zinc Limited
pavan.kaushik@vedanta.co.in
Tel: +91-99288-44499
About Hindustan Zinc
Hindustan Zinc (NSE & BSE: HINDZINC) is the one of the
largest integrated producers of zinc-lead with a capacity of 1.0
million MT per annum and a leading producer of silver. The Company
is headquartered in Udaipur, Rajasthan in India and has zinc-lead mines at Rampura
Agucha, Sindesar Khurd, Rajpura Dariba, Zawar and Kayad; primary
smelter operations at Chanderiya, Dariba and Debari, all in the
state of Rajasthan; and finished product facilities in the state of
Uttarakhand.
Hindustan Zinc has a world-class resource base with total
reserve & resource of 404.4 million MT and average zinc-lead
reserve grade of 11.0%. The Company has a track record of
consistently growing its reserve & resource base since 2003 and
currently has a mine life of over 25 years.
The Company is self-sufficient in power with an installed base
of 474 MW coal-based captive power plants. Additionally, it has
green power capacity of 309 MW including 274 MW of wind power and
35 MW of waste heat power. The Company has an operating workforce
of nearly 19,000 including contract workforce.
Hindustan Zinc is a subsidiary of the BSE and NSE listed Vedanta
Limited (formerly known as Sesa Sterlite Limited; ADRs listed on
the NYSE), a part of London listed
Vedanta Resources plc, a global diversified natural resources
company.
Disclaimer
This press release contains "forward-looking statements" – that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward–looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different than those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
For further information, please contact:
Communications
Roma
Balwani
President – Group Sustainability& CSR
Tel: +91-22-6646-1000
gc@vedanta.co.in
Investor Relations
Ashwin
Bajaj
Director – Investor Relations
Tel: +91-22-6646-1531
vedantaltd.ir@vedanta.co.in
Aarti Raghavan
VP –
Investor Relations
Vishesh
Pachnanda
Manager – Investor Relations
Sneha Tulsyan
Associate Manager – Investor
Relations
About Vedanta Limited (Formerly SesaSterlite Ltd.)
Vedanta Limited is a diversified natural resources company,
whose business primarily involves producing oil & gas, zinc -
lead - silver, copper, iron ore, aluminium and commercial power.
The company has a presence across India, South
Africa, Namibia,
Australia and Ireland.
Vedanta Limited is the Indian subsidiary of Vedanta Resources
Plc, a London-listed company.
Governance and Sustainable Development are at the core of Vedanta's
strategy, with a strong focus on health, safety and environment and
on enhancing the lives of local communities. The company is
conferred with the Confederation of Indian Industry (CII)
'Sustainable Plus Platinum label', ranking among the top 10 most
sustainable companies in India. To
access the Vedanta Sustainable Development Report 2016, please
visit
http://sustainabledevelopment.vedantaresources.com/content/dam/vedanta/corporate/documents/Otherdocuments/SDreport2015-16/Vedanta%20SDR%20FY%2015-16.pdf
Vedanta Limited is listed on the Bombay Stock Exchange and the
National Stock Exchange in India
and has ADRs listed on the New York Stock Exchange.
For more information please visit
http://www.vedantalimited.com.
Vedanta Limited
(Formerly known as SesaSterlite
Limited)
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400
099
http://www.vedantalimited.com
Registered Office:
Regd. Office: 1st Floor, 'C' wing,
Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai – 400 093
CIN: L13209MH1965PLC291394
Disclaimer
This press release contains "forward-looking statements" – that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward–looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.