"EBITDA up 23% sequentially led by higher metal
production; Record Silver and Lead
volumes"
MUMBAI, India, Jan.
21, 2019 The following release was issued today by Vedanta
Limited's subsidiary Hindustan Zinc Limited.
Highlights for the quarter
- Mined metal production at 247kt, underground mined metal up 38%
y-o-y and 6% q-o-q
- Record refined silver production at 178MT, up 34% y-o-y and 3%
q-o-q
- Record refined lead production at 54kt, up 18% y-o-y and 10%
q-o-q
9M Highlights
- Mined metal production at 691kt; Underground mined metal up
31%
- Refined lead at 145kt, up 23%
- Refined silver at 488 MT, up 26%
/PRNewswire/ -- Hindustan Zinc Limited today announced its
results for the third quarter and nine months ended December 31, 2018.
Mr. Agnivesh Agarwal, Chairman –
"The all-round performance of our underground mines has been
gratifying. As our ongoing projects are approaching completion, we
are set to reach design capacity of 1.2 million MT per annum in the
coming quarters. I am also delighted by the substantial increase in
silver production which we expect to continue next year as
well."
Financial Summary
Particulars
|
Q3
|
Q2
|
9M
|
2019
|
2018
|
Change
|
2019
|
Change
|
2019
|
2018
|
Change
|
Sales
|
|
|
|
|
|
|
|
|
Zinc
|
3,841
|
4,431
|
-13%
|
3,131
|
23%
|
10,786
|
11,787
|
-8%
|
Lead
|
826
|
788
|
5%
|
794
|
4%
|
2,350
|
1,957
|
20%
|
Silver
|
677
|
519
|
30%
|
599
|
13%
|
1,824
|
1,476
|
24%
|
Others
|
196
|
184
|
7%
|
252
|
-22%
|
667
|
1024
|
-35%
|
Total
|
5,540
|
5,922
|
-6%
|
4,777
|
16%
|
15,627
|
16,244
|
-4%
|
EBITDA
|
2,851
|
3,284
|
-13%
|
2,315
|
23.2%
|
7,950
|
8,719
|
-9%
|
Profit After
Taxes
|
2,211
|
2,298
|
-4%
|
1,815
|
22%
|
5,944
|
6,771
|
-12%
|
Earnings per
Share
|
5.23
|
5.44
|
-4%
|
4.30
|
22%
|
14.07
|
16.03
|
-12%
|
(Rs., not
annualised)
|
|
|
|
|
|
|
|
|
Mined Metal
Production ('000 MT)
|
247
|
240
|
3%
|
232
|
6%
|
691
|
693
|
0%
|
Refined Metal
Production ('000 MT)
|
|
|
|
|
|
|
|
|
Total Refined
Metal
|
|
|
|
|
|
|
|
|
Zinc
|
188
|
200
|
-6%
|
162
|
16%
|
522
|
585
|
-11%
|
Saleable
Lead1
|
54
|
46
|
18%
|
49
|
10%
|
145
|
118
|
23%
|
Zinc &
Lead
|
242
|
245
|
-1%
|
212
|
14%
|
667
|
704
|
-5%
|
Saleable
Silver2,3 (in MT)
|
178
|
132
|
34%
|
172
|
3%
|
488
|
387
|
26%
|
Wind Power (in
million units)
|
48
|
57
|
-16%
|
185
|
-74%
|
372
|
356
|
4%
|
Zinc CoP without
Royalty (Rs. / MT)
|
71,855
|
66,118
|
9%
|
72,449
|
-1%
|
71,442
|
64,079
|
11%
|
Zinc CoP without
Royalty ( $ / MT)
|
997
|
1022
|
-3%
|
1034
|
-4%
|
1025
|
994
|
3%
|
Zinc LME ($ /
MT)
|
2,631
|
3,236
|
-19%
|
2,537
|
4%
|
2,756
|
2,935
|
-6%
|
Lead LME ($ /
MT)
|
1,964
|
2,492
|
-21%
|
2,104
|
-7%
|
2,150
|
2,331
|
-8%
|
Silver LBMA ($ /
oz.)
|
14.5
|
16.7
|
-13%
|
15.0
|
-3%
|
15.4
|
16.9
|
-9%
|
USD-INR
(average)
|
72.11
|
64.74
|
11%
|
70.03
|
3%
|
69.68
|
64.49
|
8%
|
(1) Excluding
captive consumption of 1,554 tonnes in Q3 FY2019 vs 1,786 tonnes in
Q3 FY2018 and 1,799 tonnes in Q2 FY2019
|
(2) Excluding
captive consumption of 8.081 tonnes in Q3 FY2019 vs. 9.275 tonnes
in Q3 FY2018 and 9.175 tonnes in Q2 FY2019
|
(3) Silver
occurs in Lead & Zinc ore and is recovered in the smelting and
silver-refining processes
|
(4) Numbers
may not add up due to rounding off
|
Operational Performance
Total mined metal production in Q3 FY2019 was up 6% sequentially
and up 3% y-o-y to 247kt, driven by strong increase in underground
ore production and improvement in ore grades. Mined metal
production from underground mines continued its upward trajectory,
up 6% sequentially and 38% y-o-y, with continued ramp up of Rampura
Agucha, Rajpura Dariba and Zawar mines.
Mined metal production from underground mine was 691kt on a YTD
basis, 31% higher from a year ago on account of higher ore
production and grades, even as the closure of open-cast operations
caused total mined metal production to remain flat y-o-y.
Integrated metal production was 242kt in Q3, up 14% sequentially
with both zinc and lead production posting strong gains driven by
higher mined metal availability, while metal production was down 1%
from a year ago. Integrated zinc production was 188kt, up 16%
sequentially on account of higher mine output and improved mined
metal availability while it was down 6% y-o-y due to higher lead
ratio in ore. Integrated lead production increased by 10%
sequentially and 18% y-o-y to a record 54kt due to higher mine
output as well as higher production from Chanderiya
pyro-metallurgical smelter. Integrated silver production was a
record 178 MT, up 3% sequentially and 34% y-o-y on account of
higher lead production and better silver grades.
Integrated metal production YTD was 667kt, down 5% y-o-y.
Integrated lead and silver production were at 145kt and 488 MT,
higher by 23% y-o-y and 26% y-o-y respectively driven by higher
lead mined metal production and better silver grades. Integrated
zinc production at 522kt was lower y-o-y by 11% due to higher lead
ratio in ore.
Financial Performance
Revenue from operations during the quarter was Rs. 5,540 Crore, an increase of 16% sequentially
primarily due to higher metal volume and rupee depreciation.
Revenues were lower by 6% from a year ago on account of lower metal
prices, partly offset by rupee depreciation.
YTD revenues were flat y-o-y with higher lead & silver
volumes and rupee depreciation, offset by lower metal prices and
zinc volume.
The cost of production before royalty (COP) for zinc during the
quarter was $997 (Rs. 71,855),
improving by 4% (1% in Rs) from previous quarter and improving by
3% y-o-y (higher by 9% in Rs). The sequential improvement was
primarily on account of higher volume, operational efficiency and
lower diesel costs partly offset by higher mine development
expense. The y-o-y improvement was mainly on account of higher acid
credits.
YTD COP was higher by 3% (11% in Rs) at $1025 (Rs. 71,442) and was impacted by higher
mine development, higher commodity prices, LTS related expense and
rupee depreciation (in case of rupee COP), partly offset by higher
acid credits.
The resultant EBITDA for the quarter was Rs. 2,851 Crore, up 23% sequentially and down 13%
y-o-y while YTD EBITDA decreased by 9% y-o-y to Rs. 7,950 Crore.
Net Profit for the quarter was Rs. 2,211
Crore, up 22% sequentially and down 4% y-o-y while YTD net
profit was down by 12% y-o-y to Rs. 5,944
Crore in line with EBITDA, higher treasury income and higher
depreciation, partly offset by lower tax rate.
Outlook
With the ongoing ramp-up of underground mines, mined metal
production in FY 2019 is expected to be slightly higher than last
year, in line with the annual guidance provided earlier. Refined
zinc-lead production will be in sync with mined metal production
and slightly short of last year's production. The guidance of FY
2019 silver production to be in the range of 650 to 700 MT is reiterated.
Zinc COP before royalty is projected to be in the range of
USD 950 to 975 per MT in H2 FY 2019,
as guided earlier. The project capex for the year will be around
US$350 million.
Expansion Projects
Update on ongoing expansion projects
The announced mining projects are progressing in line with the
expectation of reaching 1.2 million tonnes per annum of mined metal
capacity in FY2020.
Capital mine development increased by 12% y-o-y to 10.8 km
during the quarter and by 10% to 31 km YTD.
Sindesar Khurd mine achieved highest ever total mine
development at 5.87 km during the quarter. The new 1.5 mtpa mill
accomplished smooth commissioning and produced its first
concentrate during the quarter. The production shaft work is
reaching completion and commissioning is expected in the current
quarter.
Rampura Agucha underground mine achieved record mine
development of 6.94 km during the quarter. The commissioning of mid
shaft loading system in October 2018
allowed waste hoisting to be done through the shaft ahead of
schedule, leading to improvement in ore production from RA
underground. The full shaft commissioning is expected to
complete by Q2 FY2020 synchronising with completion of crusher and
conveyor system.
At Zawar, completion of the new 2 mtpa mill is on track
and expected to commission in the current quarter.
The Fumer project at Chanderiya is expected to commission
in the current quarter.
Planning for the next phase of expansion from 1.2 to 1.35 mtpa
mined metal capacity announced in April
2018 is underway.
Other projects
22 MW solar plant was commissioned at Rampura Agucha during the
quarter taking the total solar capacity to 38 MW.
25 MLD Sewage Treatment Project was commissioned at Udaipur
taking the total capacity to 45 MLD which will help improve water
availability at Dariba and treat over half of Udaipur city's
sewage.
Liquidity and investment
As on December 31, 2018, the
Company's cash and cash equivalents was Rs. 17,462 Crore before repayment of short-term
borrowings taken for payment of interim dividend in November 2018. The net cash and cash equivalents
was Rs. 12,528 Crore. The investment
portfolio is invested in high quality debt instruments and is rated
"Tier –I" (implying Highest Safety) by CRISIL.
Earnings Call on Monday, January 21,
2019 at 4:00 pm (IST)
The Company will hold an earnings conference call on
Monday, January 21, 2019 at
4:00 pm IST, where senior management
will discuss the Company's results and performance.
Dial In: + 91-22-6280-1340, +91-22-7115-8241
About Hindustan Zinc
Hindustan Zinc (NSE & BSE: HINDZINC) is the one of the
largest integrated producers of zinc-lead with a apacity 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 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 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.
About Vedanta Limited
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is
one of the world's leading diversified natural resource companies
with business operations in India,
South Africa, Namibia and Australia. Vedanta is a leading producer of
Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Aluminium,
Steel and Commercial Power.
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.
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.
For further information, please contact:
Preeti Dubey, CFA
Investor Relations
hzl.ir@vedanta.co.in
Tel: +91-98339-97517
Communications
Arun Arora
Head Corporate Communications
Tel: +91-124-459-3039
arun.arora@vedanta.co.in
gc@vedanta.co.in
Investor Relations
Rashmi Mohanty
Director –
Investor Relations
Tel: +91-22-6646-1531
vedantaltd.ir@vedanta.co.in
Sneha Tulsyan
Associate Manager – Investor Relations