MUMBAI, India, January 19, 2015 /PRNewswire/ --
The following release was issued today by Sesa Sterlite Subsidiary Hindustan Zinc Limited.
Hindustan Zinc Limited
Results for the Third Quarter Ended December 31, 2014
"Mined metal increases 10%, EBITDA up 14%"
Highlights for the quarter
Hindustan Zinc Limited today announced its results for the third quarter ended December 31, 2014.
(Logo: http://photos.prnewswire.com/prnh/20140117/663814 )
Financial Summary
(In Rs. Crore, except as stated)
Nine months ended 31
Particulars Q3 Q2 December
2015 2014 Change 2015 2015 2014 Change
Net Sales/Income from
Operations
Zinc 2,994 2,650 13% 2,839 7,890 7,206 9%
Lead 419 352 19% 443 1,314 1,207 9%
Silver 283 332 -15% 313 914 1,128 -19%
Others 108 76 42% 154 398 329 21%
Total 3,804 3,410 12% 3,749 10,516 9,870 7%
EBITDA 2,089 1,828 14% 2,000 5,441 5,238 4%
Profit After Taxes 2,379 1,723 38% 2,184 6,181 5,023 23%
Earnings per Share (Rs.) 5.63 4.08 38% 5.17 14.63 11.89 23%
Mined Metal Production ('000
MT) 242 220 10% 213 618 680 -9%
Refined Metal Production
('000 MT)
Total Refined Zinc 196 196 0% 181 517 567 -9%
- Refined Zinc - Integrated 192 196 -2% 174 504 564 -11%
Total Saleable Refined
Lead[1] 30 25 19% 30 91 86 5%
- Saleable Lead - Integrated 25 25 0% 26 72 81 -12%
Total Refined Saleable
Silver[2],[3](in MT) 85 73 17% 80 247 259 -5%
- Saleable Silver -
Integrated 70 72 -4% 67 192 233 -17%
Wind Power (in million
units) 55 59 -7% 170 371 372 0%
Zinc CoP without Royalty
(Rs. / MT) 50,534 52,014 -3% 55,154 54,696 49,727 10%
Zinc CoP without Royalty ( $
/ MT) 817 840 -3% 911 900 828 9%
Zinc LME ($ / MT) 2,235 1,907 17% 2,311 2,209 1,869 18%
Lead LME ($ / MT) 2,000 2,111 -5% 2,181 2,093 2,088 0%
Silver LBMA ($ / oz.) 16.5 20.8 -21% 19.8 18.6 21.7 -14%
USD-INR 62.0 62.0 0% 60.6 60.8 60.1 1%
(1) Excluding captive consumption of 2394 MT in Q3 FY 2015 as compared with 1927 MT respectively in corresponding prior period.
(2) Excluding captive consumption of 12.5 MT in Q3 FY 2015 as compared with 10.1 MT in corresponding prior period.
(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.
Mr. Agnivesh Agarwal, Chairman - "We continued to deliver solid performance in the third quarter. Zinc market fundamentals are favourable and we remain committed to increasing production and controlling costs to drive profitability of our operations. Looking ahead, we believe that opportunities lie in our ability to execute against our long-term strategic priorities, which will continue to differentiate Hindustan Zinc and drive shareholder value."
Operational Performance
Mined metal production in Q3 FY 2015 was up by 14% sequentially and 10% y-o-y at 242,417 MT, as compared with 212,575 MT in previous quarter and 220,126 MT a year ago. The increase was as per the mine plan and driven by higher production from Rampura Agucha mine and better ore grades. For nine month period, mined metal production was 618,123 MT as compared to 679,597 MT in FY 2014. The shortfall will be made up in Q4, in-line with the mine plan and guidance of marginal growth in mined metal for the full year.
Integrated refined zinc production was up by 11% sequentially on account of higher mined metal production. However, it was marginally down by 2% at 191,785 MT on y-o-y basis due to higher cathode stock, even as total refined zinc production was flat from a year ago.
Production of integrated refined lead was marginally down from previous quarter at 24,890 MT and flat from corresponding period of last year. Integrated saleable silver production was up 3% sequentially and down 4% y-o-y to 70 MT. The y-o-y decline was due to accretion to WIP even as the grades from Sindesar Khurd were higher. Integrated silver production in Q4 will be better than Q3 and full year production will be close to last year.
The zinc metal cost of production before royalty during the quarter was Rs. 50,534 ($817), which is lower by 8% (10% in USD terms) sequentially and 3% lower from a year ago. The y-o-y decrease in cost was due to higher mined metal production, lower diesel cost and higher acid credits, partly offset by lower linkage coal and increased employee expense on account of long-term wage agreement.
Financial Performance
Revenues were up 12% to Rs. 3,804 Crore in Q3 FY 2015 from a year ago. The increase was driven by higher zinc LME and lead & silver metal volumes, partly offset by lower silver price and refined zinc volume.
EBITDA was up by 14% to Rs. 2,089 Crore for the quarter as compared to previous year as a result of better revenues and lower cost of production. Net profit increased by 38% to Rs. 2,379 Crore in Q3 FY 2015 as compared Rs. 1,723 in corresponding prior quarter.
Expansion Projects
Sindesar Khurd mine expansion is proceeding better than planned, although Rampura Agucha underground shaft project is behind schedule.
The Board has approved deepening of the open cast mine by 50 metres which will extend mine life to FY 2019-20 and ensure a stable transition from open pit to underground at Rampura Agucha. The pre-stripping work will start in the current quarter.
Liquidity and investment
The Company's cash and cash equivalents increased by 5% from the end of Q2 FY 2015 and 20% from a year ago. As on December 31, 2014, cash and cash equivalents were Rs. 28,980 Crore, out of which Rs. 26,687 Crore was invested in mutual funds and Rs. 2,283 Crore in bonds. The Company follows a conservative investment policy and invests in high quality debt instruments.
Earnings Call on Wednesday, January 21, 2015 at 11:00 am (IST)
The Company will hold an earnings conference call on Wednesday, January 21, 2015 at 11:00 am IST, where Hindustan Zinc's senior management will discuss the Company's results and performance. The dial-in numbers for the call are as below:
Primary Number: +91-22-6746-5962
Secondary Number: +91-22-3960-0762
For further information, please contact:
Preeti Dubey, CFA
General Manager
Investor Relations
Hindustan Zinc Limited
[email protected]
Tel: +91-294-6604017
Ekta Singh
Associate Manager
Investor Relations
Hindustan Zinc Limited
[email protected]
Tel: +91-800-3099676
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 365.1 million MT and average zinc-lead reserve grade of 12.0%. 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 over 18,000 including contract workforce.
Hindustan Zinc is a subsidiary of the BSE and NSE listed Sesa Sterlite Limited (ADRs listed on the NYSE), a part of London listed 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.
For Further Information, please contact:
Communications
Roma Balwani
President - Group Communications, Sustainability & CSR
Tel: +91-22-6646-1000
[email protected]
Investor Relations
Ashwin Bajaj
Director - Investor Relations
Sheetal Khanduja
Assoc. General Manager - Investor Relations
Tel: +91-22-6646-1531
[email protected]
About Sesa Sterlite Limited
Sesa Sterlite Limited ("Sesa Sterlite") is one of the world's largest diversified natural resources companies. Our business primarily involves exploring, extracting and processing minerals and oil & gas. We produce oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and have a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East.
Sustainability is at the core of Sesa Sterlite's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities.
Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company. Sesa Sterlite is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.
Sesa Sterlite Limited
(Formerly known as Sesa Goa Limited)
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400 099
Registered Office:
Sesa Ghor, 20 EDC Complex,
Patto, Panaji (Goa) - 403 001
CIN: L13209GA1965PLC000044
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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