Hindustan Zinc Limited Results for the First Quarter Ended 30 June 2013

  Hindustan Zinc Limited Results for the First Quarter Ended 30 June 2013

“Continued profit growth on higher metal production; Mined metal production up
                                     27%”

Business Wire

MUMBAI, India -- July 19, 2013

Hindustan Zinc Limited (“HZL” or the “Company”) today announced its results
for the first quarter ended 30 June 2013.

Highlights for the quarter

  *Mined metal production up 27%
  *Integrated zinc metal production up 10%
  *EBITDA up 6% to Rs 1,506 Crore

Mr. Agnivesh Agarwal (Chairman, Hindustan Zinc) – “We delivered growth on all
fronts in the quarter and are committed to consistently deliver superior
performance and maintain our leadership position.”


Financial Summary
(In Rs Crore, except as stated)
*financial and production numbers are rounded-off;
                                        Q1                        Q4
Particulars                              2014    2013    Change  2013
                                                             
Net Sales/Income from Operations                              
Zinc^1                                   1,986   1,816   9%      2,655
Lead                                     402     342     18%     443
Silver                                   408     388     5%      611
Others                                   143     167     -14%    141
Total                                    2,939   2,713   8%      3,850
                                                             
EBITDA                                   1,506   1,426   6%      2,127
Profit After Taxes                       1,660   1,581   5%      2,166
Earnings per Share (Rs)                  3.93    3.74    5%      5.13
                                                             
Mined Metal Production ('000 MT)         238     187     27%     260
Refined Metal Production ('000 MT)                            
Total Refined Zinc                       174     161     8%      182
- Refined Zinc – Integrated              173     157     10%     181
Total Refined Lead^2                     33      31      5%      35
- Refined Lead – Integrated              29      29      1%      32
Total Refined Saleable Silver^3 (in MT)  96      73      31%     108
- Refined Saleable Silver – Integrated   77      71      9%      91
Wind Power (in million units)            162     182     -11%    79
                                                             
Zinc CoP without Royalty (Rs / MT)       46,765  45,759  2%      44,901
Zinc CoP without Royalty ( $ / MT)       836     844     -1%     829
                                                             
Zinc LME ($ / MT)                        1,840   1,928   -5%     2,033
Lead LME ($ / MT)                        2,049   1,974   4%      2,301
Silver LBMA ($ / oz.)                    23.1    28.3    -18%    30.1
USD-INR                                  55.9    54.2    3%      54.2

(1)  Including Zinc concentrate sale of nil in Q1 FY 2014 as compared to nil
      in corresponding prior quarter and 61,097 MT MIC in Q4 FY 2013
(2)   Including captive consumption of 1,644 MT in Q1, as compared with 1,641
      MT in corresponding prior quarter and 1,777 MT in Q4 FY 2013
(3)   Excluding captive consumption of 8.8 MT in Q1, as compared with 8.6 MT
      in corresponding prior quarter and 9.2 MT in Q4 FY 2013


Operational Performance

Mined metal production was 237,825 MT in Q1, as compared with 186,642 MT in
the corresponding prior period. The increase was in line with our plan to
deliver 1.0 million MT mined metal production for the year.

Integrated production of refined zinc was up 10% y-o-y to 173,000 MT in Q1 on
higher smelter utilization rate. Integrated production of refined lead was
flat at 29,110 MT. Integrated saleable silver production was up 9% to 77 MT in
Q1 on higher contribution from Sindesar Khurd and Zawar mines.

Financial Performance

Revenues were up 8% to Rs. 2,939 Crore, compared with the corresponding prior
quarter. The increase was driven by higher sales volume and rupee
depreciation, partially offset by lower metal prices. EBITDA for the quarter
was Rs 1,506 Crore, up 6% on higher sales, partially offset by higher
operating costs. Net profit for the quarter was up by 5% to Rs. 1,660 Crore.

The zinc metal cost of production before royalty during the quarter was Rs.
46,800 per MT ($836), 2% higher in Rupee and 1% lower in USD terms from a year
ago. The increase was primarily due to lower sulphuric acid credits and higher
excavation costs, partially offset by lower coal price, lower specific coal
consumption and benefits of higher volume.

Liquidity and investment

The Company follows a conservative Investment Policy and invests in high
quality debt instruments & debt mutual funds and fixed deposit with banks. As
on 30 June 2013, the Company had cash and cash equivalents of Rs. 22,365
Crore, out of which Rs. 14,743 Crore was invested in debt mutual funds, Rs.
2,217 Crore in bonds and Rs 5,398 Crore were in fixed deposits with banks.

For further information, please contact:

HZL Investor Relation

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 over 1.0 million MT per annum with its primary smelter
operations situated in Chanderiya, Debari and Dariba. HZL has Lead-Zinc mines
in Rampura Agucha, Sindesar Khurd, Rajpura Dariba and Zawar, all in Rajasthan.
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
 
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