MUMBAI, India, Jan.
18, 2018 /PRNewswire/ -- The following release was issued
today by Vedanta Limited's subsidiary Hindustan Zinc Limited.
Highlights for the quarter
- Mined metal production at 240kt, up 10% q-o-q and down 13%
y-o-y
- Refined zinc-lead metal production at 245kt, up 7% q-o-q and
flat y-o-y
- Refined silver production at 132
MT, down 6% q-o-q and up 12% y-o-y
- EBITDA at Rs. 3,261 Crore; up 7%
q-o-q and 18% y-o-y
Highlights for 9M
- Mined metal production at 693kt, up 16% y-o-y
- Refined zinc-lead metal production at 704kt, up 28% y-o-y
- Refined silver production at 387 MT, up 24% y-o-y
- EBITDA at Rs. 8,717 Crore; up 46%
y-o-y
Hindustan Zinc Limited today announced its results for the third
quarter and nine months ended December 31,
2017.
Mr. Agnivesh Agarwal, Chairman –
"I am pleased to report that underground mines contributed to
85% of total production during the year so far, underpinning our
successful transition to a fully underground mining company. In the
six years of our transformational journey, we have consistently
delivered higher production, profitability & record dividends,
supported by increasing metal prices. The target of 1.2 million MT
of mined metal production is now within our reach."
Financial
Summary
|
(In Rs. Crore, except
as stated)
|
Particulars
|
Q3
|
Q2
|
9M
|
2018
|
2017
|
Change
|
2018
|
Change
|
2018
|
2017
|
Change
|
Sales
|
|
|
|
|
|
|
|
|
Zinc
|
4,433
|
4,094
|
8%
|
3,903
|
14%
|
12,115
|
8,701
|
39%
|
Lead
|
788
|
649
|
21%
|
638
|
24%
|
2,021
|
1,484
|
36%
|
Silver
|
519
|
483
|
7%
|
557
|
-7%
|
1,511
|
1325
|
14%
|
Others
|
106
|
95
|
12%
|
134
|
-21%
|
392
|
390
|
1%
|
Total
|
5,846
|
5,321
|
10%
|
5,232
|
12%
|
16,039
|
11,900
|
35%
|
EBITDA
|
3,261
|
2,757
|
18%
|
3,052
|
7%
|
8,717
|
5,964
|
46%
|
Profit After
Taxes
|
2,230
|
2,320
|
-4%
|
2,545
|
-12%
|
6,651
|
5,259
|
26%
|
Earnings per
Share
|
5.28
|
5.49
|
-4%
|
6.02
|
-12%
|
15.74
|
12.45
|
26%
|
(Rs., not
annualised)
|
|
|
|
|
|
|
|
|
Mined Metal
Production ('000 MT)
|
240
|
276
|
-13%
|
219
|
10%
|
693
|
595
|
16%
|
Refined Metal
Production ('000 MT)
|
|
|
|
|
|
|
|
|
Integrated Refined
Metal
|
|
|
|
|
|
|
|
|
Zinc
|
200
|
205
|
-3%
|
192
|
4%
|
585
|
456
|
28%
|
Saleable
Lead1
|
46
|
39
|
18%
|
38
|
20%
|
118
|
94
|
26%
|
Zinc &
Lead
|
245
|
244
|
0%
|
230
|
7%
|
704
|
550
|
28%
|
Saleable
Silver2,3 (in MT)
|
132
|
118
|
12%
|
140
|
-6%
|
387
|
314
|
24%
|
Total Refined
Metal
|
|
|
|
|
|
|
|
|
Zinc
|
200
|
205
|
-3%
|
192
|
4%
|
585
|
457
|
28%
|
Saleable
Lead1
|
46
|
39
|
18%
|
38
|
20%
|
118
|
94
|
26%
|
Zinc &
Lead
|
245
|
244
|
0%
|
230
|
7%
|
704
|
551
|
28%
|
Saleable
Silver2,3 (in MT)
|
132
|
118
|
12%
|
140
|
-6%
|
387
|
314
|
24%
|
Wind Power (in
million units)
|
57
|
53
|
8%
|
143
|
-60%
|
356
|
373
|
-5%
|
Zinc CoP without
Royalty (Rs. / MT) 4
|
66,118
|
58,067
|
14%
|
63,288
|
4%
|
64,079
|
57,198
|
12%
|
Zinc CoP without
Royalty ($/ MT) 4
|
1,022
|
861
|
19%
|
984
|
4%
|
994
|
852
|
17%
|
Zinc LME ($ /
MT)
|
3,236
|
2,517
|
29%
|
2,963
|
9%
|
2,935
|
2,230
|
32%
|
Lead LME ($ /
MT)
|
2,492
|
2,149
|
16%
|
2,334
|
7%
|
2,331
|
1,913
|
22%
|
Silver LBMA ($ /
oz.)
|
16.73
|
17.19
|
-3%
|
16.84
|
-1%
|
16.92
|
17.88
|
-5%
|
USD-INR
(average)
|
64.74
|
67.46
|
-4%
|
64.29
|
1%
|
64.49
|
67.12
|
-4%
|
(1) Excluding Captive
consumption of 1,786 tonnes in Q3 FY 2018 as compared with 1,731
tonnes in Q3 FY 2017 and 1,634 tonnes in Q2 FY2018. For 9M, it was
5,376 tonnes as compared with 3,652 tonnes a year ago.
(2) Excluding captive consumption of 9.275 tonnes in Q3 FY2018
as compared with 8.918 tonnes in Q3 FY 2017 and 8.750 tonnes in Q2
FY2018. For 9M, it was 28.229 tonnes as compared with 18.745 tonnes
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
without Royalty would have been Rs. 67,082 in Q3 FY 2018
|
Note:
1) Historical numbers have been revised as per Ind-AS reporting
2) Sales is reported net of Goods and Services Tax, whereas in the
previous quarters Sales was inclusive of Excise Duty
3) Numbers may not add up due to rounding off; historical numbers
may have changed due to regrouping
|
Operational Performance
Mined metal production in Q3 FY 2018 was up 10% sequentially at
240kt due to higher ore treatment. The y-o-y decrease was 13%
driven primarily by decline in overall ore grades due to mine mix
and lower production from Rampura Agucha open-cast mine, even as
total ore treated was higher. For the nine-month period, mined
metal production was up by 16% to 693kt from a year ago due to
higher ore production from underground mines, partly offset by
lower open-cast mine production.
Integrated zinc metal production was 200kt tonnes, 4% higher
sequentially and 3% lower y-o-y. Integrated lead metal production
was 46kt tonnes, 20% higher q-o-q and 18% higher y-o-y. This was in
line with availability of mined metal and smelters. Integrated
silver production was at 132 tonnes, 6% lower q-o-q on accumulation
of WIP and up 12% y-o-y in line with higher lead production.
For the nine-month period, integrated zinc, lead and silver
production were higher by 28% y-o-y, 26% y-o-y and 24% y-o-y
respectively, in line with higher availability of mined metal.
Financial Performance
Revenues during the quarter were at Rs. 5,846 Crore, an increase of 12% q-o-q and 10%
y-o-y. The y-o-y increase was due to higher lead & silver
volume and strong zinc & lead LME, partly offset by lower zinc
volume and rupee appreciation. For the nine-month period, revenues
were up by 35% y-o-y driven primarily by higher metal volumes and
prices.
The cost of production before royalty (COP) for zinc during the
quarter was at Rs. 66,118 per MT ($1,022), up 4% in INR and USD terms, compared to
the previous quarter and up 14% y-o-y in INR and 19% in USD terms.
The y-o-y increase was primarily on account of about 25% increase
in prices of metcoke & imported coal and other commodities, and
lower overall grades. For the nine-month period, COP was higher by
12.0% in INR and 17% in USD at Rs. 64,079 ($994) primarily due to over 50% increase in
prices of metcoke & imported coal and other commodities.
EBITDA for the quarter came in at Rs. 3,261 Crore, up 18% y-o-y and 7% q-o-q while YTD
EBITDA increased by 46% y-o-y to Rs. 8,717
Crore.
Net profit during the quarter was at Rs. 2,230 Crore, down 4% y-o-y and 12% q-o-q while
for YTD net profit was up by 26% y-o-y to Rs. 6,651 Crore. Lower investment income on account
of smaller corpus and lower rate of return and higher depreciation
& tax rate partly offset gains in EBITDA. Excluding a one-time
exceptional gain of Rs. 291 Crore in
Q2 related to the Supreme Court's favourable judgement on District
Mineral Fund levies, net profit during the quarter was at similar
level as compared last quarter.
As announced last quarter, the Company has done forward sale of
220kt of zinc and 30kt of lead at $3,084 and $2,418
respectively for the period January to June
2018. Of this, 165kt (150kt of zinc and 15kt of lead) is for
Q4 FY 2018 and remaining from April to June
2018. There were no further forward sales during the
quarter.
Outlook
Production guidance for FY 2018 is reiterated with mined metal
to be higher than FY 2017, refined zinc-lead metal of about 950kt,
refined silver metal of over 500 MT.
Zinc COP for FY 2018 is projected to be in the range of
$950 to $975 per MT due to continued increase in
commodity prices offsetting benefit of higher volume and cost
efficiency measures. The Company is on track to achieve 1.2 million
MT per annum (mtpa) mined metal production capacity by FY 2020.
Expansion Projects
Capital mine development increased by 55% y-o-y and was flat
q-o-q to 9,685 meters during the quarter across all mines. For the
nine-month period, capital mine development was 28,126 meters, up
69% as compared to corresponding prior period.
Rampura Agucha underground mine achieved the highest ever mine
development for the quarter at 5,958 meters, 11% higher than the
previous best. The underground mine has crossed ore production run
rate of 2.0 mtpa. The main shaft hoisting system was commissioned
during the quarter and is now in operation for waste hoisting.
South primary ventilation system is progressing on fast track and
expected to commission by end of January
2018. Off shaft development is on track and production from
the shaft is expected to start as per schedule from Q3 FY2019.
Sindesar Khurd mine achieved mine development of 4,527 meters
during the quarter. It crossed 4.5 mtpa run-rate for ore production
during the quarter. Main shaft equipping is progressing as per
schedule and on track for completion in Q4 FY2018, with production
from the shaft expected to start as per schedule in Q3 FY2019.
Civil and structure erection for the new 1.5 mtpa mill is going on
at full swing and expected to commission in Q2 FY 2019.
Zawar mine achieved mine development of 6,555 meters during the
quarter. Post completion of the Zawar mill debottlenecking to 2.7
mtpa, detailed engineering and site construction work for the new
mill of 2.0 mtpa has commenced. The new mill is expected to
commission in Q3 FY 2019.
Kayad and Rajpura Dariba: The Expert Appraisal Committee of MoEF
has approved expansion of ore production at Rajpura Dariba from 0.9
to 1.08 mtpa and at Kayad from 1.0 to 1.2 mtpa. This will pave the
way for higher production from these mines in the near future.
Fumer project at Chanderiya is progressing as per schedule.
Civil construction work is 70% complete and the project is on track
to get commissioned by mid-FY 2019.
Liquidity and investment
As on December 31, 2017, the
Company's cash and cash equivalents was Rs. 19,176 Crore invested in high quality debt
instruments. During the quarter, the Company paid off the remaining
Rs. 593 Crore of short term
commercial paper, which was raised in March
2017 to meet the special interim dividend funding
requirement.
Earnings Call on Monday, January 18,
2018 at 3:30 pm (IST)
The Company will hold an earnings conference call on
Thursday, January 18, 2018 at
3:30 pm IST, where senior management
will discuss the Company's results and performance. The dial in
number for the call is:
Dial In:
+91-22-3960-0762
For further information, please contact:
Preeti Dubey, CFA
Investor Relations
hzl.ir@vedanta.co.in
Tel: +91-98339-97517
Pavan Kaushik
Associate Vice President
Corporate Communications
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 324 MW including 274 MW of wind power, 16
MW of solar power and 35 MW of waste heat power. The Company has an
operating workforce of nearly 17,600 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
Zarin Amrolia
Manager, Group
Communications
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
Sneha Tulsyan
Associate Manager – Investor Relations
About Vedanta Limited
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 www.vedantalimited.com
Vedanta Limited
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400
099
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.
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SOURCE Vedanta Limited