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Hindustan Zinc Limited Results for the Fourth Quarter and Year Ended 31 March 2013

  Hindustan Zinc Limited Results for the Fourth Quarter and Year Ended 31
  March 2013

Highest ever Production and Profits delivered; Net profit up 25%; Highest ever
                                   dividend

Business Wire

MUMBAI, India -- April 25, 2013

Hindustan Zinc Limited (“HZL” or the “Company”) today announced its unaudited
results for the fourth quarter (“Q4”) and Full Year ended 31 March 2013 (“FY
2013”).

Highlights

Operational Performance -

  *Record mined metal production - up by 16% and 5% in Q4 and FY 2013
  *Record integrated Silver production - up by 20% and 36% in Q4 and FY 2013

Financial Performance -

  *PAT up 53% in Q4 to Rs 2,166 Crore; and up 25% in FY 2013 to Rs 6,899
    Crore

Reserves and Resources -

  *Total R&R of 348.3 million tonnes on gross addition of 24.6 million MT
    against depletion of 8.6 million MT

Dividend -

  *Final dividend of 75%, taking the total dividend for the year to 155%, the
    highest ever

Mr. Agnivesh Agarwal (Chairman, Hindustan Zinc) – “Our record performance has
set the tone for future. We are now focusing on our next phase of growth,
which will reinforce our global leadership and maintain our low-cost
positioning.”

Financial Summary
(In Rs Crore, except as stated)
*financial and production numbers are rounded-off;
              Q4                             Q3       FY
Particulars    2013     2012     Change   2013     2013     2012     Change
                                                              
Net
Sales/Income                                                   
from
Operations
Zinc^1         2,655    2,122    25%      1,975    8,289    8,265    0%
Lead           443      415      7%       371      1,497    1,141    31%
Silver         611      409      49%      645      2,093    1,232    70%
Others         141      148      -5%      149      647      617      5%
Total          3,850    3,094    24%      3,140    12,526   11,255   11%
                                                              
EBITDA         2,127    1,649    29%      1,506    6,547    6,115    7%
Profit After   2,166    1,413    53%      1,613    6,899    5,526    25%
Taxes
Earnings per   5.13     3.34     53%      3.82     16.33    13.08    25%
Share (Rs)
                                                              
Mined Metal
Production     260      223      16%      233      870      830      5%
('000 MT)
Refined
Metal                                                          
Production
('000 MT)
Total          182      190      -4%      171      677      759      -11%
Refined Zinc
- Refined
Zinc –         181      189      -4%      168      660      752      -12%
Integrated
Total
Refined        35       37       -6%      32       125      99       26%
Lead^2
- Refined
Lead –         32       31       2%       22       107      89       20%
Integrated
Total
Refined        117      88       33%      117      408      242      69%
Silver^3 (in
MT)
- Refined
Silver –       100      83       20%      62       322      237      36%
Integrated
Wind Power
(in million    79       80       -1%      62       511      336      52%
units)
                                                              
Zinc CoP
without        44,901   41,693   8%       44,926   45,461   40,003   14%
Royalty (Rs
/ MT)
Zinc CoP
without        829      828      0%       829      835      834      0%
Royalty ( $
/ MT)
                                                              
Zinc LME ($    2,033    2,025    0%       1,947    1,948    2,098    -7%
/ MT)
Lead LME ($    2,301    2,093    10%      2,199    2,113    2,269    -7%
/ MT)
Silver LBMA    30.1     32.6     -8%      32.7     30.5     35.3     -14%
($ / oz.)
USD-INR        54.2     50.3     8%       54.1     54.5     48.0     14%

(1) Including Zinc MIC sale of 61kt and 61kt in Q4 and full-year, as compared
with nil in corresponding prior periods, respectively.

(2) Including captive consumption of 1,777 tonnes and 6,500 tonnes in Q4 and
full-year, as compared with 2,156 tonnes and 6,625 tonnes in corresponding
prior periods, respectively.

(3) Including captive consumption of 9,226 Kgs and 33,832 Kgs in Q4 and
full-year, as compared with 11,345 Kgs and 34,917 Kgs in corresponding prior
periods, respectively.

Operational Performance

Mined metal production was 260kt in Q4 and 870kt in FY 2012-13, as compared
with 223kt and 830kt in the corresponding prior periods. This was in line with
our mine plan.

In line with the mined metal production trend during the year, integrated
production of refined Zinc was up 8% sequentially to 181kt in Q4. However,
integrated production of refined Zinc was down 4% in Q4 and 12% in FY 2012-13
from a year ago. The y-o-y decline in Zinc metal production was mainly on
account of lower MIC production in the first half in comparison to that in
second half. The surplus MIC was sold during the quarter.

Integrated production of refined Lead was 32kt in Q4 and 107kt in the full
year, up 2% and 20% respectively from corresponding prior periods. Integrated
refined Silver production was 100 tonnes in Q4 and 322 tonnes in the full
year, up 20% and 36% respectively, driven by higher contribution from SK mine
and Dariba Lead smelter.

Financial Performance

Revenues for Q4 FY 2012 were up 24% to Rs. 3850 Crore, compared with the
corresponding prior quarter. The increase was driven by higher sales volume
including Zinc MIC sales of 61kt and INR depreciation. Net profit for the
quarter was up by 53% to Rs. 2,166 Crore driven by higher sales.

Revenues for FY 2013 were Rs. 12,526 Crore, an increase of 11%, compared to
last year’s performance. The increase was primarily on account of increased
Silver sales and INR depreciation, partially offset by lower metal prices and
Zinc volume. The Company achieved record net profits of Rs. 6,899 Crore in FY
2013, up 25%, benefiting from higher sales and other income, partially offset
by higher operating costs.

The Zinc metal cost, without royalty, during the quarter was Rs. 44,900 per MT
($829), 8% higher in INR and flat in USD terms from a year ago. The cost for
FY 2013 was higher by 14% in INR and flat in USD term at Rs. 45,500 per MT
($835), compared with the previous year. The increase was due to higher strip
ratio at Rampura Agucha and lower acid credits, partially offset by lower
power costs.

Dividend

HZL’s Board of Directors has recommended a final dividend of 75% i.e. Rs. 1.50
per share on equity share of Rs 2.00 each. The total dividend for FY 2013 is
155% i.e. Rs. 3.10, against FY 2012 dividend of 120% and is the highest ever
dividend proposed by the company. The FY 2013 payout ratio is 22% as compared
to 21% in FY 2012, inclusive of dividend distribution tax.

Expansion projects

During the year, we announced our next phase of growth plan, which will
increase our mined metal production capacity to 1.2 mtpa. Rampura Agucha
underground mine and Kayad mine produced development ore in the second half of
FY 2013 and will start commercial production in FY 2014.

Reserves and Resources

In FY 2013, there was a gross addition of 24.6 million tonnes to reserves and
resources, prior to a depletion of 8.6 million tonnes. Total reserves and
resources at 31 March 2013 were 348.3 million tonnes containing 35.1 million
tonnes of zinc-lead metal and 910 million ounces of silver. Our mine life
continues to be 25+ years.

Outlook

Mined metal production in FY 2014 is projected to increase by 15% to 1.0 mtpa.
Integrated saleable Silver production is projected to be about 360 tonnes in
FY 2014.

Liquidity and investment

The Company follows conservative Investment Policy and invests in high quality
Debt instruments in Mutual Fund and Fixed Deposit with Bank. As on 31 March
2013, the Company had cash and cash equivalents of Rs. 21,479 Crore, out of
which Rs. 12,276 Crore was invested in debt mutual funds, Rs. 2,151 Crore in
bonds, Rs 6,893 Crore were in fixed deposits with Banks and Rs 159 Crore in
others.

For further information, please contact:

HZL Investor Relations
hzl.ir@vedanta.co.in
+91 22 6646 1531

About Hindustan Zinc

HZL is the world’s largest integrated producer of Zinc-Lead. It has a metal
production capacity of 1,064,000 tonnes per annum with its smelter operations
situated in Chanderiya, Debari, Dariba and Visakhapatnam. HZL has Lead-Zinc
mines in Rampura Agucha, Sindesar Khurd, Rajpura Dariba and Zawar. HZL has
over 6,500 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 behavior 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.

Contact:

Ashwin Bajaj
Senior Vice President
Investor Relations
Sterlite Industries (India) Limited
sterlite.ir@vedanta.co.in
Tel: +91 22 6646 1531
or
Preeti Dubey, CFA
General Manager
Investor Relations
Hindustan Zinc Limited
hzl.ir@vedanta.co.in
Tel: +91 22 6646 1531
or
Neelam Sharma
Manager
Investor Relations
Hindustan Zinc Limited
hzl.ir@vedanta.co.in
Tel: +91 22 6646 1531