Hindustan Zinc Limited (“HZL” or the “Company”) today announced
its results for the fourth quarter (“Q4”) and year ended 31 March,
2010 (“FY 2010”).
Unaudited Financial
Summary
(In Rs Crore, except as
stated)
Quarter Ended
31 March
Change
Year Ended
31 March
Change
2010 2009
%
2010 2009
% Net
Sales/Income from operations
2,498 1,263 98 %
8,017
5,680 41 % Profit before depreciation & tax (PBDT)
1,655
771 115 %
5,348 3,644 47 % Profit After Taxes
1,239
551 125 %
4,041 2,728 48 % Earnings Per Share (Rs.)
29.33 13.05
95.65 64.55
Production – Mined Metal
(Tonnes) Zinc & Lead
193,532 197,704 (2.1 %)
768,620 735,296 4.5 %
Production – Refined Metal
(Tonnes) Zinc & Lead (1)
170,255 168,536 1.0 %
650,038 617,056 5.3 % Silver (in Kgs) (2)
51,409
47,377 8.5 %
176,381 131,739
33.9 %
(1) Including captive use - lead
(MT)
1,601
2,302
7,308
5,010
(2) Including captive use - Silver
(in kgs)
8,343
12,201
37,831
26,684
Operational
Performance
Mined metal production during Q4 and FY2010, was 193,532 tonnes
and 768,620 tonnes, respectively. During the year, the company
recorded its highest ever mined metal production, close to the
rated capacity. During the same period, refined metal production
was at 170,255 tonnes and 650,038 tonnes, respectively. The company
achieved its highest ever refined metal production during the year,
primarily on account of improved operational efficiencies.
Sales during the quarter were augmented by the sale of around
86,000 dry metric tonnes of surplus zinc concentrate and 10,000 dry
metric tonnes of surplus lead concentrate. For the full year,
concentrate sales were 223,500 dry metric tonnes of surplus zinc
concentrate and 30,900 dry metric tonnes of surplus lead
concentrate.
During Q4 and FY 2010, HZL achieved its highest ever saleable
silver production of 51,409 kilograms and 176,381 kilograms, an
increase of 9% and 34%, respectively, compared with the
corresponding prior periods. The increase in production was
primarily on account of higher silver content in the mined ore and
improved metal recovery due to higher plant efficiencies.
Financial
Performance
Revenues and net profit for Q4 were Rs 2,498 crore and Rs 1,239
crore, an increase of 98% and 125%, respectively, compared with the
corresponding prior quarter. For FY 2010, revenues and net profit
were Rs 8,017 crore and Rs 4,041 crore, an increase of 41% and 48%,
respectively, compared with the previous year.
Cash profit for the Q4 and FY 2010 was Rs 1,655 crore and Rs
5,348 crore, respectively, an increase of 115% and 47% compared
with the corresponding prior periods. The increase in profitability
was primarily on account of increased volumes, operational
efficiencies and higher zinc and lead LME prices.
During Q4, average zinc and lead LME increased to $2,288 per
tonnes and $2,219 per tonne compared with $1,174 and $1,160 per
tonne, respectively, in the corresponding prior period. For FY2010,
average zinc and lead LME increased to $1,936 per tonne and $1,990
per tonne, compared with $1,563 per tonne and $1,660 per tonne in
the corresponding prior period.
Expansion
Projects
The 210 ktpa Hydro zinc smelter at Dariba and the 1 mtpa zinc
concentrator at Rampura Agucha were successfully commissioned
during the end of the quarter, around three months ahead of
schedule. Consequently, the total zinc and lead smelting capacity
has increased to 964 ktpa.
The 100 ktpa lead smelter project along with 160MW CPP at Dariba
is progressing well for scheduled completion in Q2 FY2011. The
Sindesar Khurd mine project is on schedule for progressive
commissioning from Q1 FY 2011.
Post completion of these projects, HZL will be the world’s
largest integrated zinc-lead producer with a total smelting
capacity of 1.064 mtpa.
Liquidity and
investment
As at 31 March, 2010, the Company had cash and cash equivalents
of around Rs. 11,900 Crore. This includes around Rs. 11,000 Crore
in debt mutual funds and Rs. 900 Crore in fixed deposits with
banks. The Company follows a conservative investment policy and
invests in high quality debt instruments. All mutual fund
investments are based on advice from CRISIL.
Dividend
The board of directors has recommended a dividend of 60% i.e.
Rs. 6.00 per equity share of Rs. 10.00 for the current year.
About Hindustan Zinc
HZL is India’s leading integrated producer of zinc & lead
and is among the world’s leading integrated producers. It has a
metal production capacity of 964,000 tonnes per annum with its
smelter operations situated in Chanderiya, Debari and
Visakhapatnam. HZL has lead-zinc mines in Rampura Agucha, Sindesar
Khurd, Rajpura Dariba and Zawar. HZL has around 7,000 employees.
The company is a subsidiary of the NYSE listed, Sterlite Industries
(India) Limited (NYSE: SLT) and London listed FTSE 100 diversified
metals and mining major, Vedanta Resources plc.
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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