INDIACSR News Network
UDAIPUR: “Our results show our ability to deliver consistent performance from our best-in-class assets. We will continue our growth story in future and maintain our cost leadership to deliver industry leading performance”, said Mr. Agnivesh Agarwal, Chairman of Hindustan Zinc Ltd (HZL).
Today company released financial result for the Q2. Here is the highlights of financial result of Hindustan Zinc for the Q2 for the year 2012-13.
– Hindustan Zinc net profit zooms 15% to Rs. 1540 crore in Q2
– HZL Net Profit Up to Rs. 1540 crore in Q2 ’13 – from Rs. 1344.69 crore in Q2 ’12
– HZL H1 goes up to Rs. 3121.13 in ’13 from Rs. 2839.60 Crore in ’12
– Net Revenue up 9% to Rs. 2,822 Crore
– Interim Dividend increased to 80% – Interim dividend of Rs. 1.60 per share
– Refined Lead production up by 60%
– Refined Silver production up by 86%
– Greenfield Kayar mine strikes developmental ore, ahead of schedule
– Company has cash and cash equivalents of Rs. 19,136 Crore as on 30th September 2012
Operational Performance
Mined metal production during H1 is in line with HZL mine plan. The production is expected to progressively increase during Q3 and Q4, such that H2 should more than make up the H1 shortfall. We expect the mined metal production for the full year to be slightly higher than the previous year. Mined metal production was 190kt in Q2 and 377kt in H1, as compared with 210kt and 398kt in the corresponding prior periods. In line with the mined metal production, integrated production of refined zinc was 153kt in Q2 and 310kt in H1. Integrated production of refined lead was 24kt in Q2 and 53kt in H1. Integrated refined Silver production was 80 tonnes in Q2 and 160 tonnes in H1, up 63% and 66% respectively, driven by the ramp-up of SK mine and Dariba lead smelter.
Financial Performance
Revenues were Rs. 2,822 Crore in Q2 and Rs. 5,535 Crore in H1, up 9% and 2% respectively compared to the corresponding prior periods. Net profit was up 15% in Q2 at Rs. 1,540 Crore and up 10% in H1 at Rs. 3,121 Crore, compared to the corresponding prior period. During Q2 and H1 of FY2013, the positive impact of higher Lead-Silver volumes and Rupee depreciation was offset by lower zinc volumes, lower prices of Zinc, Lead and Silver. The Zinc COP, excluding royalty, during the quarter was Rs. 46,750 per MT ($844), compared to Rs 38,800 ($847) in the corresponding prior quarter. The increase was primarily on account of higher excavation cost and Rupee depreciation.
Interim Dividend
HZL’s Board of Directors has recommended an interim dividend of 80% i.e. Rs. 1.60 per share on equity share of Rs 2.00 each, as compared to an interim dividend of Rs 1.50 per share last year. The record date for the payment of interim dividend is 26th October 2012.
Expansion Projects
At the greenfield Kayar mine, a milestone of development ore production was achieved towards the end of the quarter. Both Rampura Agucha and Kayar underground mines are progressing well and will start commercial production in FY2014.
Liquidity and investment
As at 30 September 2012, the Company had cash and cash equivalents of Rs. 19,136 Crore. This includes Rs. 10,177 Crore in debt mutual funds, Rs. 1,663 in bonds and Rs. 7,275 Crore in fixed deposits with banks. The Company follows a conservative investment policy and invests in high quality debt instruments. Investment portfolio is rated “very good” by CRISIL – the highest rating.
