HZL Announces Results for the First Quarter Ended 30 June 2014

        HZL Announces Results for the First Quarter Ended 30 June 2014

  PR Newswire

  MUMBAI, India, July 21, 2014

MUMBAI, India, July 21, 2014 /PRNewswire/ --

The following release was issued today by Sesa Sterlite Limited's subsidiary
Hindustan Zinc Limited.

                           Hindustan Zinc Limited 

             Results for the First Quarter Ended June 30, 2014 

Hindustan Zinc Limited today announced its results for the first quarter ended
June 30, 2014.

 (Logo: http://photos.prnewswire.com/prnh/20140117/663814 )

Mr. Agnivesh Agarwal (Chairman,  Hindustan  Zinc) - "Zinc prices are looking
up as market sentiments are improving and metal balance remains favourable.
Our expansion projects will enhance our market leadership and we are
aggressively accelerating our mine development efforts to increase future

Financial Summary

( In Rs. Crore, except as stated )

    Particulars                                               Q1                  Q4
                                                     2015      2014     Change      2014
    Net Sales/Income from Operations
    Zinc                                            2,057     1,986         4%     2,591
    Lead                                              452       402        12%       536
    Silver                                            318       408       -22%       375
    Others                                            136       143        -5%        87
    Total                                           2,963     2,939         1%     3,589
    EBITDA                                          1,352     1,506       -10%     1,736
    Profit After Taxes                              1,618     1,660        -3%     1,881
    Earnings per Share (Rs.)                         3.83      3.93        -3%      4.45
    Mined Metal Production ('000 MT)                  163       238       -31%       200
    Refined Metal Production ('000 MT)
    Total Refined Zinc                                141       174       -19%       183
    - Zinc - Integrated                               139       173       -20%       179
    Total Saleable Refined Lead[1]                     31        31        -1%        36
    - Saleable Lead - Integrated                       22        27       -21%        29
    Total Refined Saleable Silver[2],[3](in MT)        82        96       -15%        91
    - Saleable Silver - Integrated                     56        77       -28%        68
    Wind Power (in million units)                     146       162       -10%        76
    Zinc CoP without Royalty (Rs. / MT)            60,093    46,765        29%    55,467
    Zinc CoP without Royalty ( $ / MT)              1,005       836        20%       899
    Zinc LME ($ / MT)                               2,074     1,840        13%     2,029
    Lead LME ($ / MT)                               2,096     2,049         2%     2,106
    Silver LBMA ($ / oz.)                            19.6      23.1       -15%      20.5
    USD-INR                                          59.8      55.9         7%      61.8

(1) Excluding captive consumption of 1,689 MT in Q1 FY 2015, as compared with
1,644 MT in corresponding prior period. 

(2) Excluding captive consumption of 8,777 MT in Q1 FY 2015, as compared with
8,844 MT in corresponding prior period.     

(3) Silver occurs in Lead & Zinc ore and is recovered in the smelting and
silver-refining processes 

Operational Performance 

Mined metal production was 163,131 MT in Q1, as compared with 237,825 MT a
year ago. The decrease is in-line with our mine plan, which involves lower
mined metal production on a year-on-year basis in the first half of the year
where we excavate more waste than ore. With higher production planned in
second half, the transition to underground mining is progressing well.

Integrated refined metal production of zinc-lead during the quarter was lower
by ~20% compared to a year ago, in-line with mined metal production.

The zinc metal cost of production before royalty during the quarter was Rs.
60,093 ($1,005), which is 29% higher in Rupee and 20% higher in USD term from
a year ago. The lower production volumes significantly impacted costs,
accentuated by rupee depreciation, planned plant shutdowns and higher mine

Financial Performance 

Revenues were up 1% to Rs. 2,963 crore in Q1 FY 2015 as compared with the
corresponding prior period. The increase was driven by higher zinc LME price &
premium and rupee depreciation, offset by lower volumes.

EBITDA decreased by 10% to Rs. 1,352 crore in Q1 FY 2015 due to lower
production volumes and higher production cost.

Net profit decreased by 3% to Rs. 1,618 crore in Q1 FY 2015. The impact of
lower EBITDA was partly offset by strong other income during the quarter.

Expansion Projects 

During the quarter, total mine development increased by 15%. Rampura Agucha
and Sindesar Khurd shaft projects are progressing well. India's first
paste-fill plant is under commissioning at Rampura Agucha mine. Mine design
and planning for further deepening of the pit at Rampura Agucha is under
progress to explore extension of mine life.

Liquidity and investment 

As on June 30, 2014, the Company had cash and cash equivalents of Rs. 26,272
crore, out of which Rs. 22,172 crore was invested in mutual funds, Rs. 2,049
crore in bonds and Rs 2,000 crore were in fixed deposits with banks. The
Company follows a conservative investment policy and invests in high quality
debt instruments.


For Further information, please contact 

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

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.


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.

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

CommunicationsRoma Balwani Executive Vice President - Group Communications &
CSR Tel: +91-22-6646-1330 gc@vedanta.co.in Investor RelationsAshwin Bajaj
Senior Vice President - Investor RelationsSheetal Khanduja Associate General
Manager - Investor RelationsHitesh Dhaddha Manager - Investor Relations Tel:
+91-22-6646-1531 Sesasterlite.ir@vedanta.co.in
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