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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hindustan-zinc-limited-results-for-the-fourth-quarter-and-full-year-ended-march-31-2017-300442644.html
SOURCE Vedanta Limited