Business
information report
1. Summary Information
|
|
|
Country |
|
|
Company Name |
HINDUSTAN ZINC LIMITED |
Principal Name 1 |
Mr. Agnivesh Agarwal |
|
Status |
Excellent |
Principal Name 2 |
Mrs. Ajita Bajpai Pande |
|
|
|
Registration # |
17-001208 |
|
Street Address |
Yashad Bhawan,
Yashadgarh, |
||
|
Established Date |
10.01.1966 |
SIC Code |
-- |
|
Telephone# |
91 - 294 - 2529182/2529183/2529184/2529185/ 181/2529102/103/104/
225854/ 225853 |
Business Style 1 |
Manufacturing,
selling, exploration, mining and concentration of zinc, lead silver, |
|
Fax # |
91 - 294 - 2526443 / 2523522/2525763/
229012/ 225826 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Refined lead |
|
|
# of employees |
-- |
Product Name 2 |
Zinc not alloyed containing by weight less than 99.99% zinc |
|
Paid up capital |
Rs.4225,319,000 |
Product Name 3 |
-- |
|
Shareholders |
Bodies Corporate 64.92% |
Banking |
State Bank of |
|
Public Limited Corp. |
-- |
Business Period |
45 years |
|
IPO |
-- |
International Ins. |
- |
|
Public |
-- |
Rating |
Aa ( 81) |
|
Related
Company |
|||
|
Relation - Joint Ventures |
Country
|
Company
Name |
Madanpur South Coal Company Limited |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
15,435,100,000 |
Current Liabilities |
13,258,000,000 |
|
Inventories |
4,517,400,000 |
Long-term Liabilities |
604,700,000 |
|
Fixed Assets |
61,640,900,000 |
Other Liabilities |
7,112,300,000 |
|
Deferred Assets |
0 |
Total Liabilities |
20,975,000,000 |
|
Invest& other Assets |
120,621,300,000 |
Retained Earnings |
177,014,400,000 |
|
|
|
Net Worth |
181,239,700,000 |
|
Total Assets |
202,214,700,000 |
Total Liab. & Equity |
202,214,700,000 |
|
Total Assets (Previous Year) |
159,260,800,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
80,169,700,000 |
Net Profit |
40,414,100,000 |
|
Sales(Previous yr) |
56,802,700,000 |
Net Profit(Prev.yr) |
27,276,100,000 |
MIRA
INFORM REPORT
|
Report Date : |
16.05.2011 |
Note:
Given address could not be confirmed.
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN ZINC LIMITED |
|
|
|
|
Registered
Office : |
Yashad Bhawan,
Yashadgarh, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
10.01.1966 |
|
|
|
|
Com. Reg. No.: |
17-001208 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.4225.319
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27204RJ1966PLC001208 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHH00694B/ JDHH00701B/
JDH00759D/ JDHH00601G |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company's Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing, selling, exploration, mining
and concentration of zinc, lead silver, cadmium, sulphuric acid, phosphoric
acid and cobalt. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa ( 81) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 720000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
– established and reputed company having fine track. Directors are reported as
experienced and respectable businessmen. Trade relations are fair. Business
is active. Payments are usually correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Yashad Bhawan, Yashadgarh, |
|
Tel. No.: |
91 - 294 - 2529182/2529183/2529184/2529185/ 181/2529102/103/104/
225854/ 225853 |
|
Fax No.: |
91 - 294 - 2526443 / 2523522/2525763/ 229012/ 225826 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
|
|
Tel. No.: |
91-294-2529182 |
|
Fax No.: |
91-284-2523522 |
|
|
|
|
MINING UNITS: |
Located at :
|
|
|
|
|
SMELTING UNITS: |
|
|
|
|
|
Exports Office: |
Solitaire Corporate Tel 91-22-56434500 Fax 91-22-56434640 Email: exportzinc@vedanta.co.in |
|
|
|
|
Marketing Office : |
Solitaire Corporate Tel 91-22-56434500 Fax 91-22-56434640 Email: Puneet.jagatramka@vedanta.co.in |
|
|
|
|
Power Operations: |
Located at: Ř Chanderiya
Smelting Complex Ř Zawar Mines Ř Zinc Smelter
Debari Ř Samana Wind
Power Plant Ř Gadag Wind Power
Plant |
|
|
|
|
Regional Office: |
Northern Regional Office Scope Office Complex, Core – 6 IInd Floor,7, Tel - 91 11-24364988/24367261 Fax 91 11-24365421 Email sanjay.khanna@vedanta.co.in Southern Regional Office #705, 7th Floor, Manipal Centre, North Block, Tel 91 80- 25590918 Fax 91 80- 25590917 Email: sundeep.prasanna@vedanta.co.in Eastern Regional Office Flat No. 9/10, Chatterjee
International Centre, Tel 91 33-2217763/22262627 Fax 91 33-22262627 Email: mohammed.azmatulla@vedanta.co.in Western Regional Office Solitaire Corporate Tel 91-22-56434500 Fax 91-22-56434640 Email: Anuj.lal@vedanta.co.in |
|
|
|
|
Branches : |
Located at : ·
301-302, Dohil Chambers, 46, Tel. No. 91-11-2628 0570 / 2646
3711 / 2641 9426 Fax No. 91-11-2648 4614 ·
Chatterjee International Centre, 20th Floor,
33-A, Tel. No. 91-33-2242 1761 / 2226
2627 / 2249 5413 Fax No. 91-33-2245 7354 ·
47, Mittal Chambers, Nariman Point, Mumbai – 400
021 Tel. No. 91-22-2202 5903 / 2204
9317 Fax No. 91-22-2283 3341 ·
B-II, 403, Kamal Apartment, Tel. No. 91-141-2200723 ·
Block No. 205, II Floor, 5-9-13, Tara Mandal
Complex, Saifabad, Tel. No. 91-40-2241712 / 2233516
/ 2230307 ·
102, 8th Garden Colony, New Surya Apartment, Tel. No. 91-79-2656 1161 ·
No. 6, Amar Jyoti House, Building Co-operative
Society, Near Tel. No. 91-80-330 0292 / 330
5036 |
DIRECTORS
AS ON 30.07.2010
|
Name : |
Mr. Agnivesh Agarwal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mrs. Ajita Bajpai Pande |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Navin Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S K Mittal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bhupal Nanda |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M S Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Akhilesh Joshi |
|
Designation : |
COO and Whole time Director |
KEY EXECUTIVES
|
Name : |
Mr. SL Bajaj |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Rajendra Pandwal |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2,743,154,310 |
64.92 |
|
|
2,743,154,310 |
64.92 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
2,743,154,310 |
64.92 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
56,986,737 |
1.35 |
|
|
1,442,880 |
0.03 |
|
|
1,247,950,590 |
29.54 |
|
|
23,997,490 |
0.57 |
|
|
62,430,358 |
1.48 |
|
|
1,392,808,055 |
32.96 |
|
|
|
|
|
|
40,496,438 |
0.96 |
|
|
|
|
|
|
42,864,594 |
1.01 |
|
|
4,109,515 |
0.10 |
|
|
1,886,088 |
0.04 |
|
|
1,733,338 |
0.04 |
|
|
10,000 |
- |
|
|
140,000 |
- |
|
|
2,750 |
- |
|
|
89,356,635 |
2.11 |
|
Total Public shareholding (B) |
1,482,164,690 |
35.08 |
|
Total (A)+(B) |
4,225,319,000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
4,225,319,000 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing,
selling, exploration, mining and concentration of zinc, lead silver, cadmium,
sulphuric acid, phosphoric acid and cobalt. |
||||||
|
|
|
||||||
|
Products : |
|
GENERAL INFORMATION
|
Suppliers : |
Ř
Balaji Industries product Limited Ř
Gaurav Crushing industries Ř
Vulcan techno private Limited Ř
AKCL Exports Limited |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
Ř
State Bank of Ř
State Bank of Ř
IDBI Bank Limited Ř
ICICI Bank Limited Ř
HDFC Bank Limited Ř
Calyon Bank Ř
Development Bank of Ř
Citi Bank Ř
Kotak Mahindra Bank |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells (Statutory Auditors) Chartered Accountants |
|
Address : |
12, |
|
|
|
|
Joint Ventures: |
Madanpur South Coal Company Limited |
|
|
|
|
Holding Company : |
· Sterlite Opportunities and Ventures Limited ·
Ultimate in · Ultimate in U. K: Vedanta Resources Plc. U. K. |
|
|
·
|
|
Fellow Subsidiaries : |
· Bharat Aluminum Company Limited · Sterlite Paper Limited* ·
Monte · Copper Mines of Tasmania Pty Limited · Thalanga Copper Mines Pty Limited* · Konkola Copper Mines Plc · Sterlite Energy Limited ·
Sterlite ( ·
· Talwandi Sabo Power Limited · Sesa Goa Limited · VS Dempo and Company .private limited(VSD) · Sesa Industries Limited* · The Madras Aluminum Company Limited · Vedanta Aluminium Limited |
|
|
|
|
Group Companies : |
1.Volcan Investments Limited, 2. Vedanta Resources Plc, 3. Vedanta Finance Jersey Limited, 4. Vedanta Resources Holdings Limited, 5. Twinstar Holdings Limited, 6. Welter Trading Limited, 7. Vedanta Resources Finance Limited, 8. Vedanta Resources Cyprus Limited, 9. Richter Holding Limited, 10. Westglobe Limited, 11. Finsider International Company Limited, 12. Sesa Goa Limited, 13. Sesa Industries Limited, 14. Konkola Copper Mines Plc, 15. Vedanta Aluminium Limited, 16. The Madras Aluminium Company Limited 17. Sterlite Infra Limited, 18. Sterlite Opportunities and Ventures Limited, 19. Talwandi Saboo Power Limited, 20. Hindustan Zinc Limited, 21. Bharat Aluminium Company Limited, 22. THL KCM Limited, 23. KCM Holdings Limited, 24. Vedanta Resources Investments Limited, 25. THL Aluminium Limited, 27. Sterlite Energy Limited, 28. Copper Mines of Tasmania Pty Limited, 29. Sterlite ( 30. 31. Thalanga Copper Mines 32. Monte 33. Anil Agarwal Discretionary 34. Onclave PTC Limited, 36. Vedanta Jersey Investments Limited, 37. Vedanta Resources Jersey Limited, 38. Vedanta Resources Jersey 2 Limited, 39. V S Dempo & Co. Private Limited, 40. Dempo Mining Corporation Private Limited, 41. Goa Maritime Private Limited, 42. Vizag General Cargo Berth Private Limited, 43. Allied Port Services Private Limited, 44. MALCO Industries Limited, 45. MALCO Power Company Limited, 46. Mr Anil Agarwal |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Shares |
Rs. 10 each |
Rs.5000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
422531900 |
Equity Shares |
Rs. 10 each |
Rs.4225.319
millions |
|
|
|
|
|
Of
the above:
a) 21370000 (2008: 21370000) equity shares of
Rs.10/- each allotted for consideration other than cash.
b) 274315431 (2008: 274315431) equity shares
of Rs.10/- each are held by Sterlite Opportunities and Ventures Limited (SOVL)
– holding company. SOVL is a subsidiary of Sterlite Industries (
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4225.300 |
4225.300 |
4225.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
177014.400 |
139350.500 |
114256.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
181239.700 |
143575.800 |
118481.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
83.000 |
0.000 |
|
|
2] Unsecured Loans |
604.700 |
3.900 |
3.900 |
|
|
TOTAL BORROWING |
604.700 |
86.900 |
3.900 |
|
|
DEFERRED TAX LIABILITIES |
7112.300 |
5588.600 |
4596.800 |
|
|
|
|
|
|
|
|
TOTAL |
188956.700 |
149251.300 |
123082.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
61640.900 |
41049.200 |
36971.600 |
|
|
Capital work-in-progress |
11129.600 |
11083.900 |
4654.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
109491.700 |
69288.700 |
63324.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4517.400
|
5456.600
|
5181.00
|
|
|
Sundry Debtors |
1518.300
|
1649.400
|
4436.600
|
|
|
Cash & Bank Balances |
9275.300
|
27191.500
|
13627.800
|
|
|
Other Current Assets |
69.600
|
408.300
|
30.000
|
|
|
Loans & Advances |
4571.900
|
3133.200
|
3840.900
|
|
Total
Current Assets |
19952.500
|
37839.000
|
27116.300
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4776.600
|
3722.200
|
7748.600
|
|
|
Other Current Liabilities |
5086.000
|
4306.000
|
0.000
|
|
|
Provisions |
3395.400
|
1981.300
|
1235.800
|
|
Total
Current Liabilities |
13258.000
|
10009.500
|
8984.400
|
|
|
Net Current Assets |
6694.500
|
27829.500
|
18131.900
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
188956.700 |
149251.300 |
123082.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
80169.700 |
56802.700 |
78777.700 |
|
|
|
Other Income |
7222.000 |
9312.300 |
8516.300 |
|
|
|
TOTAL (A) |
87391.700 |
66115.000 |
87294.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Mining and Manufacturing |
24986.600 |
22942.800 |
18131.700 |
|
|
|
Increase / Decrease of Stock |
753.200 |
(243.800) |
591.100 |
|
|
|
Employees remuneration and benefits |
4573.600 |
3648.900 |
3081.900 |
|
|
|
Administrative and Selling |
3155.500 |
3113.200 |
3189.100 |
|
|
|
TOTAL (B) |
33468.900 |
29461.100 |
24993.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
53922.800 |
36653.900 |
62300.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
439.200 |
218.800 |
241.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
53483.600 |
36435.100 |
62058.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3342.500 |
2852.700 |
2205.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
50141.100 |
33582.400 |
59853.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
9727.000 |
6306.300 |
15892.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
40414.100 |
27276.100 |
43960.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
66492.800 |
46194.100 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
5000.000 |
5000.000 |
NA |
|
|
|
Dividend |
2535.200 |
1690.100 |
NA |
|
|
|
Tax on Dividend |
421.100 |
287.300 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
98950.600 |
66492.800 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
NA |
20352.300 |
22574.800 |
|
|
TOTAL EARNINGS |
NA |
20352.300 |
22574.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
NA |
3155.100 |
1877.600 |
|
|
|
Capital Goods |
NA |
1599.000 |
1896.600 |
|
|
TOTAL IMPORTS |
NA |
4754.100 |
3774.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
95.65 |
64.55 |
104.04 |
|
QUATERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
31.03.2011 4th
Quarter |
|
Net Sales |
19733.700 |
22010.400 |
26301.600 |
32373.100 |
|
Total Expenditure |
9515.800 |
10757.800 |
11229.100 |
12688.100 |
|
PBIDT (Excl OI) |
10217.900 |
11252.600 |
15072.500 |
19685.000 |
|
Other Income |
1584.400 |
1840.300 |
2071.000 |
3024.800 |
|
Operating Profit |
11802.300 |
13092.900 |
17143.500 |
22709.800 |
|
Interest |
65.500 |
(5.100) |
1.100 |
132.500 |
|
Exceptional Items |
0.000 |
(211.600) |
0.000 |
0.000 |
|
PBDT |
11736.800 |
12886.400 |
17142.400 |
22577.300 |
|
Depreciation |
1122.700 |
1158.400 |
1195.400 |
1270.900 |
|
Profit Before Tax |
10614.100 |
11728.000 |
15947.000 |
21306.400 |
|
Tax |
1704.900 |
2240.800 |
3051.200 |
3593.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
8909.200 |
9487.200 |
12895.800 |
17712.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
46.24
|
41.25
|
50.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
62.54
|
59.12
|
75.98 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
61.45
|
42.57
|
93.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.23
|
0.50 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.07
|
0.07
|
0.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.50
|
3.78
|
3.02 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject is a subsidiary of Sterlite Industries India Limited
was incorporated from the erstwhile Metal Corporation of
Market Overview
Zinc
Global Market
In FY 2010, world smelter production increased by 4% to 11.7
million tonnes; however during the same period, the world’s Zinc consumption
decreased by about 3% to 10.5 million tonnes, leaving the Zinc market with a
surplus of over 1.2 million tonnes of refined Zinc metal.
In FY 2010, the average price of Zinc was US$1,936 on the
London Metal Exchange (LME) compared to FY 2009 average price of US$1,563, an
increase of 24%.
Indian Market
Demand in Indian market for refined Zinc increased by 25% to
525 kt in FY 2010, from 419 kt in the previous year. This was mainly driven by
the demand created by the various infrastructure projects. The Indian Zinc
demand is expected to grow in the coming years based on a positive GDP
forecast. The key components for demand growth are the ongoing and upcoming
infrastructure projects, telecom and power projects and automobile sector. 37
Infrastructure projects worth Rs 70,000 Crore have already been approved by the
Indian Government including various projects for Railway Electrification,
Ports, Airports, power projects etc. In long-term they see a promising future
for Zinc demand in
They hold around 74% share of the Indian Zinc demand, where
they see continuous growth in Zinc consumption in line with a positive GDP
outlook. As is typical of all developing economies, the growth rate of metal
consumption in
Applications of Zinc
Galvanizing: Zinc is one
–– of the best forms of protection against corrosion and is used extensively in
building,
construction,
infrastructure, household appliances, automobiles, steel furniture, and more.
Galvanizing accounts for around 48% of global Zinc usage.
- Zinc Oxide: The most widely used Zinc compound, Zinc
oxide is used in the vulcanization of rubber, as well as in ceramics,
paints, animal feed, pharmaceuticals, and several other products and
processes. A special grade of Zinc oxide has long been used in
photocopiers. 10% of global Zinc usage is in this segment.
- Die Castings: Zinc is an ideal material for die casting
and is extensively used in hardware, electrical equipments, automotive and
electronic components. 17% of Zinc used in the world is through Die
Castings.
- Alloys: Zinc is extensively used in making alloys,
especially brass, which is an alloy of copper and Zinc. Alloy accounts for
around 11% of global Zinc u
- Rolled Zinc: Zinc sheets are used extensively in the
building industry for roofing, flashing and weathering applications. These
are also used in graphic art to make plates and blocks, as well as battery
callouts and coinage.
OPERATIONAL
PERFORMANCE
INTRODUCTION TO
OPERATIONAL PERFORMANCE
The products include refined Zinc metal, refined Lead metal,
Silver, Cadmium and Sulphuric Acid. They are on course to become the world’s
largest integrated Zinc-Lead producer and are the largest primary Silver
producer in
All the units are
accredited with International Organization for Standardization (ISO) 9001,
International Organization for Standardization (ISO) 14001, Occupational Health
and Safety Assessment Series (OHSAS) 18001 and 5S certifications.
They are focused on
attaining low-cost operations, at the back of the world class assets, supported
by the state-of-the art technology and people.
MINING OPERATIONS
RAMPURA AGUCHA MINE
During this year, Rampura Agucha Mine (RAM) achieved
production of 668,035 tonnes of contained Zinc and Lead, an increase of 3% as
compared with the previous year. The increase in production volume is mainly
because of improved recoveries & mill throughput. They have successfully
commissioned the stream IV concentrator in March 2010; its volume impact will
be visible in the next financial year.
Reserves and resources of Rampura Agucha Mine as on 31 March
2010 are 120.4 million tonnes. It is an open-pit mine which was commissioned in
1991. It is located 230 kilometers north of
The concentrator has four streams and is equipped with
state-of-the-art automation which includes the Proscon 2100 NT operating
system, Experion process control system; Multi Stream Analyzer to ensure faster
and accurate readings of different metal percentages in the various streams;
and Froth Image Analyzer that provides actual image of froth bubbles to
facilitate effective quality control. It has excellent infrastructural and
software support.
Significant technical/mechanical upgradations include
induction of 34m3
excavator which is the biggest hydraulic excavator in India and 221 MT dumpers;
introduction of Truck Dispatch System for HEMM fleet management to increase the
operational efficiencies; introduction of Simulator for providing continuous
training to HEMM operators to ensure safe operation with highest level of
efficiency; introduction of Slope Stability Radar which helps in providing
advance signals of any impending movements along the pit wall – First mine to
possess such system in India; Chemical treatment on haul roads to reduce dust
generation and water consumption; Controlled Blasting Technique/Pre-splitting.
During the year, they
have also started the underground mine development work at RAM, in conformity
with the outcomes of the feasibility studies done by consultants of
international repute. Underground mining is planned beyond the ultimate open
pit depth of 372 meters from the surface. RAM underground project has
state-of-the-art infrastructure facilities and mining equipments including
Shotcreting machine (first time in Indian mining industry), 17 ton loaders, 30
ton LPDT (Low Profile Dump Trucks), twin boom jumbo drill machines and other
support equipments. Process for carrying out detailed engineering work for
shaft sinking (900 meters depth) has also been started.
These initiatives will
facilitate faster rate of underground mine development and targeted production
from RAM on a sustainable basis.
EXPANSIONS
They have successfully commissioned 1 mtpa concentrator at
Rampura Agucha, around a quarter ahead of schedule, thereby increasing the ore
production capacity of Rampura Agucha from 5 mtpa to 6 mtpa
SMELTING OPERATIONS
CHANDERIYA SMELTING
COMPLEX
Chanderiya Smelting Complex (CSC) – the largest single
location Zinc smelting complex in the world; achieved a production level of
436,909 tonnes of refined Zinc metal in FY 2010, which is 6% higher compared
with the production in FY 2009. The refined Lead production during FY 2010 was
71,627 tonnes, which is 10% higher compared with the production in FY 2009. The
increase in metal production is the result of improved throughput, higher plant
availability and other operational efficiencies. Chanderiya Smelting Complex
has a capacity of 610,000 tonnes of Zinc and Lead. It also has production
capacity of 168 tonnes per annum of Silver; 828,500 tonnes per annum Sulphuric
Acid and 234 MW of thermal power. The complex includes two Hydrometallurgical
Zinc Smelters, one Pyrometallurgical Lead-Zinc Smelter and one Ausmelt Lead
plant. The Zinc from Hydro plants & Lead products are registered with the
London Metal Exchange. Hydro I is a 100% Export Oriented Undertaking.
Chanderiya Smelting Complex is located about 110 kilometers north of
POWER
They have strategically installed Captive Power Plants (CPP)
to cater to the power requirement of the smelters and mines. They have thermal
Captive Power Plants at Chanderiya and Zawar with power generation capacity of
314 MW. In addition they also generate power from the Diesel Generation (DG)
units installed at Debari, Chanderiya and Zawar with a total power generation
capacity of 35.62 MW. With respect to the green energy initiative projects,
they have 123.2 MW wind power plants in the State of
They also generate power from the waste heat generated from Roasters.
They have 20.2 MW of power generation capacity from waste heat recovery. Any
surplus power generated is sold to State grid and power
exchanges, thereby helping the power deficit state of
Rajasthan.
To further consolidate the Power generation capacity in
correspondence to the requirement of the upcoming smelting complex in Dariba,
they are in the process of commissioning a 160 MW (2X80) captive power plant at
the same location; this will enhance the thermal power generation capacity from
the present 314 MW to 474
MW. The erection and commissioning activity in CPP at Dariba
Smelting Complex (DSC) is under progress and is well on track for scheduled
completion. Operations and maintenance of the power plants have been outsourced
to the world’s renowned power plant maintenance and operations companies.
As a part of the power cost reduction measures, they have
taken various initiatives to decrease the cost of Coal, the main cost driver,
including obtaining Coal via Coal linkages, optimizing the blend of Indian and
imported Coal, keeping the auxiliary consumption at a minimum and operating the
power plants at a high plant load factor
(PLF). The CPP units in Chanderiya and Zawar have maintained
consistency in generation by generating more than the installed capacity; they
have achieved 100% PLF and look to further achieve more PLF with completion of
improvement initiatives in that direction. As a part of the efficiency drive,
CILMS (Composite Islanding and Load Management System) was commissioned in May
2009 to keep Chanderiya station immune from heavy system disturbances, which
had the potential to cause generation loss/equipment damage.
Wind Power Plants
They have 123.2 MW of wind power generation capacity in the
state of
The wind energy mills have the state-of-theart gearless
synchronous wind turbine generator technology which facilitates higher power
generation. During the year, they produced 219.1 Million Units of wind power,
marginally lower as compared to FY 2009. The wind energy projects in
In addition, advanced mineral exploration technologies have
been introduced. Hyperspectral data were utilized for mineral alteration
mapping. Heliborne Magnetic and Electro-Magnetic surveys (VTEM) were flown over
1,500 km2 area.
They have also pioneered to bring Deep Earth Imaging (Titan) technology in
Coal
Coal is the most important raw material for the captive
thermal power plants and the cost of Coal has a significant impact on the cost
of production.
The captive power plants use a mix of Indian and imported
Coal. They have taken various initiatives to maximize the percentage of Indian
Coal in the plants. They are currently maintaining a fair combination of both
Indigenous and Imported Coal as inputs to the Captive Power Plants. They have a
Linkage Coal/ Fuel Supply Agreement (FSA) with South Eastern Coalfields Limited
(a subsidiary of Coal India Limited). All of the domestic Coal comes through
the linkage. The balance requirement of Imported Coal is currently being
catered through imports from Indonesia & South Africa. The strategy is to
procure Coal on TCO (Total Cost of Ownership) basis, to reduce the
ultimate cost per unit.
In addition, they secured in January 2006, as part of a
consortium with five other partners, the award of a coal block from the
Madanpur Coal Block; which is expected to help meet the coal requirements of
the captive power plants in the future. The share in the coal block is 31.5
million tonnes, which, according to the Ministry of Coal of the Government of
India, are proved reserves with ash content ranging from 28.7% to 47.0% and
gross calorific value ranging from 3,865 Kcal/kg to 5,597 Kcal/kg.
The coal block is located in the Hasdev Arand coal field of
Chhattisgarh which is falling under moderate to dense forest. The environment
clearance and approval for forest diversion was rejected by the MOEF and
accordingly letter of rejection was issued by the state government on
23.1.2010. Company had represented the matter to the Ministry. PMO office had
constituted a committee of Secretaries under the Chairmanship of Chief
Secretary to review the same.
GROWTH PROJECTS
During the year, they successfully
completed the following projects:
- Successfully commissioned the 210 ktpa Hydro Zinc smelter
in Dariba Smelting Complex.
- Successfully
commissioned the 1 mtpa concentrator at Rampura Agucha. The expansion
projects announced in FY 2009, in line with achieving the stated
production capacity goal of one million tonnes of metal per annum, The 210 ktpa Hydro zinc smelter at
Dariba was successfully commissioned in March 2010, a quarter ahead of
schedule. SHG Zinc (99.995%) was produced on the fourth day from
commissioning. 1 mtpa concentrator at Rampura Agucha was also commissioned
successfully in March 2010, around three months ahead of schedule. The
total Zinc and Lead metal production capacity now stands at 964 ktpa.
The work at the 100 ktpa lead smelter and the 160MW CPP at
Dariba, is progressing well for scheduled completion in Q2 FY2011.
The Sindesar Khurd mine project is also on schedule for
progressive expansion to 1.50 mtpa. They will also progressively increase the
Silver production from the current levels of 180 tonnes per annum to a level of
approximately 500 tonnes per annum. Post completion of the 100 ktpa lead
smelter, they will become the world’s largest integrated zinc-lead producer
having total Zinc-Lead metal production capacity of 1,064 ktpa.
MARKETING
In
They are also fulfilling Zinc demands of Far East,
They have been very determined in the efforts towards
developing new customers and broadening the customer base all around the world.
The year on year increase in the metal capacities through various expansions,
has been fundamental basis of the marketing efforts.
FINANCIAL REVIEW
Financial
information is presented in accordance with the Accounting Standards (AS). The
reporting currency is Indian Rupees (INR).
FY 2010 has
seen a strong financial performance at the back of higher production volumes, improved
operational efficiencies and capacity addition. This has helped the Company to
maintain its cost competitiveness and sustain profitability. Table 1 present
the summary of financial performance during the year FY 2010.
SALES
Company sold 386,000 tonnes of zinc metal in the
domestic market, while export accounted for 192,000 tonnes. Sale of Lead metal
in the domestic market was 51,000 tonnes, while the export sale accounted for
13,500 tonnes. Company also sold 223,500 Dry Metric Tonnes (DMT) of surplus
zinc concentrate and 30,900 DMT of surplus lead concentrate in FY 2010.
PRODUCTION
During FY 2010, the Company recorded its highest
ever mined and refined metal production of 768,620 tonnes and 650,038 tonnes
respectively of Zinc & Lead, up 4.5% and 5.3% respectively, compared to FY
2009. The Company also recorded its ever highest Silver production at 176,381
kilograms, an increase of 33.9%, compared to the previous year.
REVENUE
The revenue during the year increased from
56800.000 Millions to 80170.000 Millions, up by 41%. This was mainly due to
volume growth and higher LME realization.
COST OF PRODUCTION:
Unit cost of production in FY2010 excluding
royalties was 15% higher at US$ 698 per tonne compared with US$ 609 per tonne
in FY2009, primarily due to lower Sulphuric acid credit which fell by US$123
per tonne and wage increases arising out of a long term wage settlement
agreement. Royalties were higher at US$152 per tonne in FY2010 on account of
increased LME prices and higher royalty rates. The royalty rate, which is
linked to LME, was increased from 6.6% to 8.4% for zinc and from 5.0% to 12.7%
for lead, with effect from 13 August 2009.
OTHER INCOME
Other income during FY 2010 was Rs 7220.000
Millions, lower by around 22% as compared to the previous year, despite
increase of around Rs 40000.000 Millions in the investments base. This was
mainly on account of the decline in investments income owing to the declining
market interest rates. The post tax rate of return on investments came down to
5% in FY 2010, from 8% in FY 2009.
OPERATING MARGINS
PBDIT in FY 2010 was Rs 53920.000 Millions, up by
47% compared with FY 2009. This was primarily due to significant increase in
LME of Zinc and Lead metal prices, up by 24% and 20% respectively. The positive
impact of higher volumes, rupee appreciation against US dollar and stable
operating cost, contributed significantly to Company’s operating margins.
TAXATION
Company had taken several tax saving initiatives, which
have helped in maintaining stable current tax rate from 16.4% in FY 2009 to
16.6% in FY 2010, despite significant increase in profits.
LIQUIDITY AND
INVESTMENT
As on 31 March 2010, the Company had cash and cash
equivalent of Rs 119000.000 Millions. This includes 110000.000 Millions in debt
mutual fund, and Rs 9000.000 Millions in Fixed deposit with banks. Excellent
cash conversion in FY 2010 has ensured that they exited the year with a strong
balance sheet, even with the significant capital investment of Rs 24000.000
Millions in the period.
.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS YEAR ENDED 31.12.2010
(Rs. In Millions)
|
Particulars |
Third Quarter Ended 31.12.2010 |
Nine months Ended 31.12.2010 |
|
Income |
|
|
|
Net Sales |
26014.700 |
67151.200 |
|
Other Operating Income |
286.700 |
868.700 |
|
Expenditure |
|
|
|
(Increase)/decrease in Stock in Trade |
(467.800) |
(1557.600) |
|
Consumption Raw Material |
460.500 |
1328.500 |
|
Consumption of Stores and Spares |
2186.900 |
6422.900 |
|
Power and Fuel |
2520.300 |
7378.200 |
|
Mining Royalty |
2195.400 |
5523.600 |
|
Other Mining and Manufacturing Expenses |
2290.000 |
6257.900 |
|
Employee Costs |
1129.800 |
3766.900 |
|
Depreciation and Amortisation |
914.000 |
3476.500 |
|
Administrative and Other Expenses |
12424.500 |
2356.500 |
|
Total Expenditure |
24121.400 |
34953.400 |
|
|
|
|
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
13877.100 |
33066.500 |
|
Other Income |
2071.000 |
5495.700 |
|
Profit/(Loss) before Interest and Exceptional items |
15948.100 |
38562.200 |
|
Interest |
1.100 |
61.500 |
|
Profit / (Loss) after interest before Exceptional items |
15947.000 |
38500.7000 |
|
Exceptional Items |
0.000 |
211.600 |
|
Profit / (Loss) From
Ordinary activities before Tax |
15947.000 |
38289.100 |
|
Provision for Taxation |
3051.200 |
6996.900 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
12895.800 |
31292.200 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
12895.800 |
31292.200 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
4225.300 |
4225.300 |
|
Reserves (Excluding Revaluation Reserves) |
305.200 |
740.600 |
|
Basic and Diluted |
30.52 |
74.06 |
|
Public Share Holding |
|
|
|
- Number of Shares |
148216469 |
148216469 |
|
- Percentage of shareholding |
35.08 |
35.08 |
|
Promoters and
Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
-- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
274315431 |
274315431 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
|
- Percentage of Share (as a % of the total share capital of the company) |
64.92 |
64.92 |
Segment wise Reporting Revenue, Results and capital Employed
(Rs. In millions)
|
Particulars |
Third Quarter Ended 31.12.2010 |
Nine months Ended 31.12.2010 |
|
Segment Revenue |
|
|
|
(Net Sales/ Income
from operations) |
|
|
|
Zinc, lead and Sliver |
25894.100 |
66626.700 |
|
Others |
120.600 |
524.500 |
|
Total |
26014.700 |
67151.200 |
|
Segment Result |
|
|
|
Zinc, Lead and Sliver |
13966.800 |
33046.300 |
|
Others |
(57.900) |
78.200 |
|
Total |
13908.900 |
33124.500 |
|
Less: Interest Expenditure |
1.100 |
61.500 |
|
Less : Exceptional Items |
0.000 |
211.600 |
|
Add: Other Unallocable income net of unallocable expenditure |
2039.200 |
5437.700 |
|
Profit before tax |
15947.000 |
38289.100 |
|
Capital Employed
(Segment Assets – segment liabilities ) |
|
|
|
Zinc, lead and silver |
80785.600 |
80785.600 |
|
Others |
4297.400 |
4297.400 |
|
Unallocated |
126426.600 |
126426.600 |
|
Total |
212509.600 |
212509.600 |
Notes:
1.
The results for the quarter and Nine months ended
31" December 2010 have been reviewed by Audit Committee at their meeting
.The Board of Directors at its meeting held on 19'January 2011 approved the
above results and their release.
2.
The Board has proposed issue of bonus share in the
ratio of 1:1 and also sub division of its equity share of face value of Rs.10
each into 5 equity shares of face value of Rs.2 each, subject to approval of
shareholders.
3.
Arising from the announcement of the Institute of
the Chartered Accountants of India on 29* March 2008, the Company had decided
to adopt Accounting Standard (AS) 30 - Financial Instruments: Recognition and
Measurement effective 1st April, 2007.
4.
Consistent with the treatment followed in earlier
years, investment in equity shares of a power company has been considered as an
intangible asset. This has resulted in an additional amortisation charge of
Rs.35.100 millions for the Nine months ended 31st December 2010
(corresponding previous Nine months: Rs.35.100 millions and the net profit
after tax for the Nine months ended 31st December 2010 being lower by Rs.23.400
millions (corresponding previous Nine months: Rs.23.100 millions).This
treatment, being in preference to the requirements of Accounting Standards, has
been reported by the auditors.
5.
The Company is engaged in the business of mining
and smelting of zinc, lead and silver. The Company has also a wind energy
business; however, its Operations for the period are within the threshold
limits stipulated under AS-17 "Segment Reporting" and hence it does
not require disclosure as a Separate reportable segment. The Company has
announced a 150 MW expansion in wind power capacity at an investment of
approximately Rs.8650.000
millions in two phases to be
completed by September 2011.
6.
Exceptional item during the Nine months ended 31''
December 2010 represents the amount incurred on Voluntary Retirement Scheme in
respect of zinc, lead and silver segment.
7.
In terms of Clause 41 of the Listing Agreement,
details of number of investor complaints for the Quarter ended 31"
December 2010: Beginning NIL. Received 4, Disposed off 4, Pending NIL.
8.
The auditors have carried out "Limited
Review" of the above results.
9.
Previous Period / Year figures have been regrouped
1 re-arranged wherever necessary.
FIXED ASSETS
- Land (Freehold And Leasehold)
- Buildings and Road
- Railway Sidings
- Locomotive and Wagons
- Plant and Machinery (Plant and Machinery)
- Power Supply and Distribution
- Shafts
- Adits and Inclines
- Air and Water Lines
- Industrial Waste and Effluent Treatment,
- Water Mains
- Dams
- Canal and Wells And Other Equipments)
- Furniture and Fittings
- Vehicles
WEBSITE DETAILS
OVERVIEW
They are
Their millions business comprises of mining and smelting of zinc and lead along with captive power generation.
They have four mines and three smelting operations: mines
are situated at Rampura Agucha, Sindesar Khurd, Rajpura Dariba and Zawar in the
State of
The Rampura Agucha mine is the largest zinc producing mine in the world and the Chanderiya Smelting Complex is the largest single-location zinc smelting complex in the world. Both of these rank in the first cost quartile.
Their current metal production capacity is 754,000 tonnes
per annum (669,000 tonnes of zinc and 85,000 tonnes of lead). The ore mining
capacity stands at 7.40 million tonnes per annum. They also own 314 MW of coal
based thermal captive power plants in Rajasthan to support their metallurgical
operations. As a green energy initiative, they also have 123.2 MW of wind
energy in
BOARD OF DIRECTORS
Chairman
Mr. Agnivesh Agarwal is the Chairman. He was appointed to
the Board on 15 November 2005. Mr. Agarwal is an eminent industrialist with a
strong knowledge of business operations. He is vastly experienced in managing
large projects, restructuring business and strategizing. Over the years he has
developed excellent commercial knowledge with hands-on experience. He is also
the Director of MALCO, Sterlite Iron and Steel Company Limited, Sterlite
Infrastructure Private Limited, Agarwal Galvanizing Private Limited, and
Sterlite Infrastructure Holdings Private Limited Mr. Agarwal graduated from
COO & Whole-time
Director
Mr Akhilesh Joshi is Chief Operating Officer and Whole Time
Director of the Company. He joined the company in 1976. Prior to becoming COO
of Hindustan Zinc Limited, he was Senior Vice President (Mines), responsible
for the overall operations at all mining units. Mr. Joshi has a Mining Engineering
degree from
Director
Mr A. R. Narayanaswamy is the non-executive Independent Director of the Company. He is a member of The Institute of Chartered Accountants of India and has vast experience in the industry. He is also on the Board of Madras Aluminium Company Limited and Sterlite Technology Limited.
Director
Mr. Navin Agarwal, Executive Vice-Chairman of Vedanta Resources Plc was appointed to the Board of Directors on 11 April 2002. Mr. Agarwal is also the Chairman of KCM and MALCO, and a Director in BALCO, Vedanta Alumina, MALCO, SOTL, Sterlite Paper Limited, Sterlite Iron and Steel Company Limited, Sterlite Infrastructure Private Limited, Sterlite Infrastructure Holdings Private Limited, Sterlite Energy, Sterlite Telecom Limited, Sterlite Telelink Limited, Finsider International Company Limited and Sterlite Shipping Ventures Private Limited.
Mr. Agarwal has over 21 years of experience in strategic and
operational management; he has been the driver behind our growth. He holds a
Bachelor of Commerce degree from
Director
Mr. R.K. Malhotra is a Director and was appointed on the
Board with effect from 27 October 2010. Mr. Malhotra is an IAS (Indian
Administrative Service) officer, presently holding the post of Director,
Government of India, Ministry of Mines,
Director
Mr. Sanjiv Kumar Mittal is a Director. He was appointed to
the Board on 28 March 2007. Mr. Mittal is an IAS (Indian Administrative
Service) officer and the Joint Secretary and Financial Advisor of the
Government of India, Ministry of Mines in
MILESTONE
2010
- Rampura Agucha Mine expansion from 5.00 million tonnes per annum to 6.00 million tonnes per annum, increasing the total ore production capacity of the Company to 8.60 million tonnes per annum.
- Commissioned the 210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Dariba Smelting Complex, increasing the Zinc & Lead metal production capacity to 964,000 tonnes per annum (879,000 tonnes of Zinc and 85,000 tonnes of Lead).
2009
- Rampura Agucha Mine expansion from 3.75 million tonnes per annum to 5.00 million tonnes per annum making the total mining capacity of the Company to 7.40 million tonnes per annum
- 88,000 tonnes per annum zinc debottlenecking competed at Chanderiya Smelter Complex & Debari Zinc Smelter making the total metal production capacity to 754,000 tonnes per annum
- Commissioned 80 MW Captive Power Plant at Zawar Mines
- Commissioned 34.4 MW Wind Energy Farms making the Company's total Wind Energy capacity to 123.2 MW.
2008
- Commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter (Hydro II) in a benchmark time of 20 months at Chanderiya Smelter Complex
- Commissioned 80 MW Captive Power Plant at Chanderiya Smelting Complex
- 5,000 tonnes of zinc debottlenecking completed at Debari Zinc Smelter
- Commissioned
50.4 MW of Wind Energy Farms at
2007
- Sindesar Khurd Mine began production with an initial production capacity of 0.3 million tonnes per annum
- Commissioned
38.4 MW of Wind Energy Farms at
2006
- Commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter (Hydro I) at Chanderiya Smelter Complex
- Commissioned 2 X 77 MW Captive Power Plant at Chanderiya Smelter Complex
- Commissioned 50,000 tonnes per annum of Ausmelt Lead Smelter at Chanderiya Smelter Complex
2005
- Rampura Agucha Mine expansion from 2.30 million tonnes per annum to 3.75 million tonnes per annum
2004
- 35,000 tonnes of zinc debottlenecking completed at Chanderiya Smelter Complex
2003
- 32,000 tonnes of zinc debottlenecking completed at Debari Zinc Smelter and Vizag Zinc Smelter
- Debottlenecking of Rampura Agucha Mine from 1.37 million tonnes per annum to 2.30 million tonnes per annum
1991
- Commissioned 70,000 tonnes per annum of zinc and 35,000 tonnes per annum of lead Pyrommetallurgical Lead-Zinc Smelter at Chanderiya
- Rampura Agucha Mine began production with an initial ore production capacity of 0.9 million tonnes per annum
PRESS RELEASE
Results for the
Second Quarter and Half Year Ended 30 September 2010
Q2 Highlights
Operational
Performance
- Record mined metal production at 204,836 tonnes
- Record refined zinc metal production at 176,239 tonnes
- Refined lead metal production up 20% at 16,167 tonnes
- Refined silver production up 9% at 43,953 kilograms
Financial Performance
- Revenue up 21% at Rs. 21630.000 millions
- PBDT up 5.3% at Rs. 12890.000 millions
Strong balance sheet
with cash and cash equivalents of Rs. 122130.000 millions
Mumbai: Hindustan Zinc Limited (“HZL” or the “Company”) today announced its results for the second quarter
(“Q2”) and half year (“H1”) ended 30 September 2010
Unaudited Financial
Summary
Rs. In Millions
|
Particular |
Quarter ended 30 September |
Change |
Nine months ended 30 September |
Change |
||
|
|
2010 |
2009 |
% |
2010 |
20089 |
% |
|
Net Sales/ Income from operations |
21630.000 |
17900.000 |
20.8% |
41140.000 |
33020.000 |
24.6% |
|
Profit before depreciation and tax (PBDT) |
12890.000 |
12240.000 |
5.3% |
24620.000 |
21830.000 |
12.8% |
|
Profit After Taxes |
9490.000 |
9350.000 |
1.5% |
18400.000 |
16540.000 |
11.2% |
|
Earnings per Shares (Rs.) |
22.45 |
22.13 |
|
43.54 |
39.14 |
|
|
Production
–Mined Metal (Tonnes) |
|
|
|
|
|
|
|
Zinc and Lead |
2048360.000 |
1925170.000 |
6.4% |
3867660.000 |
3753590.000 |
3.0% |
|
Production
– Saleable Metal (Tonnes) |
|
|
|
|
|
|
|
Zinc |
1762390.000 |
1406610.000 |
25.3% |
3407580.000 |
2799760.000 |
21.7% |
|
Lead (1) |
161670.000 |
135100.000 |
19.7% |
314770.000 |
310400.000 |
1.4% |
|
Silver (in Kgs) (2) |
439530.000 |
404700.000 |
8.6% |
872620.000 |
819300.000 |
6.5% |
(1) Including captive consumption of 2,812 tonnes in H1 FY2011 vs. 4,257 tonnes in H1 FY2010, and 1,646 in Q2 FY2011 vs. 1,945 in Q2 FY2010.
(2) Including captive consumption of 14,745 tonnes in H1 FY2011 vs. 22,079 tonnes in H1 FY2010, and 8,612 in Q2 FY2011 vs. 10,146
in Q2 FY2010.
Operational
Performance
During Q2, the company achieved its highest ever zinc and lead mined metal production at 204,836 tonnes, up around 6% compared with the corresponding prior quarter, primarily on account of stabilization of the new
concentrator at Rampura Agucha.
During the same period, zinc refined metal production was highest ever at 176,239 tonnes, up around 25% compared with the corresponding prior quarter. The increase in the production was primarily on account of contribution from the new 210 ktpa Hydro Zinc smelter at the Dariba, which contributed around 39,000
tonnes in Q2.
Refined Lead metal production increased 20% to 16,167 compared with the corresponding prior quarter.
Refined silver production during Q2 was 43,953 kilograms, an increase of around 9% compared with the corresponding prior quarter. The increase in production was primarily on account of higher silver content in the mined ore and improved plant efficiencies.
Financial Performance
Revenues and net profit for Q2 were Rs 21630.000 Millions and Rs 9490.000 Millions, an increase of around 21% and 2% respectively, compared with the corresponding prior quarter. The increase was primarily on account of higher volumes and improved LME prices. The silver realization for Q2 was Rs 1080.000 millions.
The positive impact of higher volumes and improved LME prices was partly offset by the impact of increase in coke and coal costs, increase in commodity prices and higher stripping cost at mines. As a result of the same, net zinc metal cost with royalty, during the quarter was Rs. 45,000 per MT (US$ 977), an increase of 21% compared with the corresponding prior quarter.
During Q2, average zinc and lead LME prices were $2,013 per tonne and $2,032 per tonne respectively, compared with $1,757 per tonne and $1,925 per tonne, in the corresponding prior quarter.
Expansion Projects
The 100 ktpa lead smelter at the Dariba Smelting Complex is expected to be commissioned by Q3 FY11. Primary mine development activity at Sindesar Khurd Mine (SKM) project is also on schedule. The new 1.50 mtpa mill at SKM is expected to commence production by end of Q3 FY11. We remain on track to achieve a capacity of 500 tonnes of silver by FY 2013.
Liquidity and
investment
Company follows a conservative Investment Policy and invests in high quality Debt instruments in Mutual Fund and Fixed Deposit with Bank. As at 30 September 2010, the Company had cash and cash equivalents of Rs. 122130.000 Millions, out of which Rs. 74380.000 Millions was invested in debt mutual funds and Rs. 47750.000 Millions were in fixed deposits with Banks.
About
HZL is
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions between
a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.91 |
|
|
1 |
Rs.73.06 |
|
Euro |
1 |
Rs.64.03 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.