MUMBAI, July 20, 2017 /PRNewswire/ -- The following
release was issued today by Vedanta Limited's subsidiary Hindustan
Zinc Limited.
Highlights
- Mined metal production at 233kt; up 84% y-o-y
- Integrated silver production at 115
MT; up 30% y-o-y
- Integrated zinc-lead metal production of 228kt; up 81%
y-o-y
- EBITDA at Rs. 2,404 Crore, up
113% y-o-y
Hindustan Zinc Limited today announced its results for the first
quarter ended June 30, 2017.
Mr. Agnivesh Agarwal, Chairman –
"I am pleased to see a robust start to the new financial
year. Our underground mines delivered their highest ever volumes
this quarter, underpinning our smooth transition to an entirely
underground mining company. Zinc prices strengthen towards the
quarter-end on continued supply deficits and declining inventories
of Zinc, we look forward to setting new benchmarks this
year."
Financial
Summary
|
(In Rs. Crore, except
as stated)
|
Particulars
|
Q1
|
Q4
|
2018
|
2017
|
Change
|
2017
|
Net Sales/Income
from Operations
|
|
|
|
|
Zinc
|
3,779
|
1,920
|
97%
|
5,138
|
Lead
|
595
|
340
|
75%
|
851
|
Silver
|
435
|
360
|
21%
|
563
|
Others
|
152
|
150
|
1%
|
118
|
Total
|
4,961
|
2,770
|
79%
|
6,671
|
EBITDA
|
2,404
|
1,130
|
113%
|
3,770
|
Profit After
Taxes
|
1,876
|
1,037
|
81%
|
3,057
|
Earnings per Share
(Rs.)
|
4.44
|
2.45
|
81%
|
7.23
|
Mined Metal
Production ('000 MT)
|
233
|
127
|
84%
|
312
|
Refined Metal
Production ('000 MT)
|
|
|
|
|
Integrated Refined
Metal
|
|
|
|
|
Zinc
|
194
|
101
|
91%
|
215
|
Saleable
Lead1
|
35
|
25
|
42%
|
45
|
Zinc &
Lead
|
228
|
126
|
81%
|
260
|
Saleable
Silver2,3 (in MT)
|
115
|
89
|
30%
|
139
|
Wind Power (in
million units)
|
156
|
148
|
5%
|
75
|
Zinc CoP without
Royalty (Rs. / MT)
|
62,698
|
61,440
|
2%
|
53,226
|
Zinc CoP without
Royalty ( $ / MT)
|
973
|
918
|
6%
|
794
|
Zinc LME ($ /
MT)
|
2,596
|
1,918
|
35%
|
2,780
|
Lead LME ($ /
MT)
|
2,161
|
1,719
|
26%
|
2,278
|
Silver LBMA ($ /
oz.)
|
17.2
|
16.8
|
2%
|
17.4
|
USD-INR
(average)
|
64.46
|
66.93
|
-4%
|
67.01
|
(1) Excluding captive
consumption of 1,956 MT in Q1 FY2018 as compared with 1,084 MT in
Q1 FY 2017 and 1,633 MT in Q4 FY 2017
(2) Excluding captive
consumption of 10.25 MT in Q1 FY2018 as compared with 5.5 MT in Q1
FY 2017 and 8.7 MT in Q4 FY 2017
(3) Silver occurs in
Lead & Zinc ore and is recovered in the smelting and
silver-refining processes
|
Note: Numbers may not add up due to rounding off; historical
numbers may have changed due to regrouping
Operational Performance
Mined metal production of 233kt during the quarter was achieved,
up 84% y-o-y. The increase was primarily on account of higher
volumes from all mines, higher zinc grade and depletion of opening
ore stock.
Integrated zinc metal production during the quarter was at
194kt, up 91% y-o-y. Integrated saleable lead metal production
during the quarter was at 35kt, up 42% y-o-y. The increase was in
line with availability of mined metal, supported by smelter
efficiencies. Integrated saleable silver production during the
quarter was 115 MT, up 30% y-o-y due
to higher grade and volume from Sindesar Khurd mine.
Financial Performance
Revenues during the quarter were Rs. 4,961 Crore, up 79% y-o-y on account of strong
zinc & lead prices and higher volume.
The zinc metal cost of production per MT before royalty (COP)
during the quarter was at Rs. 62,698 ($973), higher by 2% y-o-y (6% in dollar terms).
The increase was due to substantial increase in coal &
commodity prices and lower acid realization, offset by higher
volumes.
The above revenue and cost of production resulted in a 113%
increase in EBITDA during the quarter to Rs. 2,404 Crore.
During the quarter, net profit increased by 81% y-o-y to Rs.
1,876 Crore. The impact of higher
EBITDA was partly offset by lower investment income on a smaller
investment corpus post dividend pay-out and interest cost on
temporary Commercial Paper.
Expansion Projects
Capital mine development increased by 82% y-o-y and 28% q-o-q to
8,828 meters during the quarter.
At Rampura Agucha during the quarter, the equipping of the main
shaft was completed and winder will be commissioned in the current
quarter. Order for Ventilation fans was placed with commissioning
targeted by end of the financial year, in line with return air
drive development. We expect the production from the shaft to start
in Q3 FY19.
Sindesar Khurd mine main shaft headgear erection was completed
and preparatory works for equipping is in progress. We expect
commissioning of winder system by Q1 FY 19 and production from the
shaft to start in Q2 FY19. During the quarter we awarded order to
L&T for a new mill of 1.5 mtpa capacity, to take total capacity
to 5.8 mtpa. Excavation work for mill has started in full swing
with targeted commissioning by Q2 next year.
In Zawar mine raise boring machines were mobilized for
ventilation raises at Balaria and Mochia mines and work was
commenced. Zawar mill debottlenecking project, now upgraded to 2.7
mtpa, will be completed by this quarter and associated power
upgradation project was completed during the quarter. We are now
upgrading Zawar to the status of a mega mining complex based on
revised R&R potential and have increased focus on our
exploration program for Zawar.
The fumer project is progressing as per schedule and expected to
complete by mid FY 2019. All long lead items are ordered and civil
works are in full swing.
Outlook
The Company maintains its volume guidance given in April with
Dollar COP (excluding royalty) to be slightly higher than previous
year and are on track to reach mined metal capacity of 1.2 mtpa in
FY 2020.
Liquidity and investment
The Company's net cash and cash equivalents was Rs. 16,998 Crore as at June
30, 2017 which is excluding Rs. 6,959
Crore of short term commercial paper. The gross investments
were Rs. 23,957 Crore in high quality
debt instruments.
Earnings Call on Thursday, July 20,
2017 at 4:00 pm (IST)
The Company will hold an earnings conference call on
Thursday, July 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 8.9%. 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 325 MW including 274 MW of wind power and
35 MW of waste heat power and 16 MW of solar 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
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
Vishesh Pachnanda
Manager – 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