MIRA
INFORM REPORT
|
Report Date : |
07.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN ZINC LIMITED |
|
|
|
|
Registered
Office : |
Yashad Bhawan,
Yashadgarh, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on)
: |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
10.01.1966 |
|
|
|
|
Com. Reg. No.: |
17-001208 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.8450.638
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 901300000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
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|
|
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 : |
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|
|
|
|
Corporate Office : |
|
|
Tel. No.: |
91-294-2529182 |
|
Fax No.: |
91-284-2523522 |
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|
|
|
MINING UNITS: |
Located at:
|
|
|
|
|
SMELTING UNITS: |
Located at:
|
|
|
|
|
Wind Power Farms: |
Located at:
|
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|
|
|
Exports Office: |
Solitaire Corporate Tel 91-22-56434500 Fax 91-22-56434640 Email: exportzinc@vedanta.co.in |
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|
|
|
Marketing Office : |
Solitaire Corporate Tel 91-22-56434500 Fax 91-22-56434640 Email: Puneet.jagatramka@vedanta.co.in |
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|
|
|
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 31.03.2011
|
Name : |
Mr. Agnivesh Agarwal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr.
Navin Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
|
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Anjali Anand Srivastava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. K. Malhotra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Akhilesh Joshi |
|
Designation : |
COO and Whole time Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajendra
Pandwal |
|
Designation : |
Secretary |
|
|
|
|
Name : |
Mrs. Preeti
Dubey |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S. L. Bajaj |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(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 |
|
|
|
|
|
|
|
|
41,418,539 |
0.98 |
|
|
2,661,839 |
0.06 |
|
|
31,145,707 |
0.74 |
|
|
55,759,652 |
1.32 |
|
|
130,985,737 |
3.10 |
|
|
|
|
|
|
54,297,332 |
1.29 |
|
|
|
|
|
|
42,216,522 |
1.00 |
|
|
1,252,622,906 |
29.65 |
|
|
2,042,193 |
0.05 |
|
|
1,194,442 |
0.03 |
|
|
10,000 |
- |
|
|
830,000 |
0.02 |
|
|
7,751 |
- |
|
|
1,351,178,953 |
31.98 |
|
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 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionsBUSINESS DETAILS
|
Line of Business : |
Manufacturing, selling,
exploration, mining and concentration of zinc, lead silver, cadmium,
sulphuric acid, phosphoric acid and cobalt. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||
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|
||||||||||||
|
Bankers : |
·
State
Bank of ·
IDBI
Bank Limited ·
ICICI
Bank Limited ·
HDFC
Bank Limited ·
Citi
Bank ·
Calyon
Bank ·
Development
Bank of |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
12, |
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Group Companies : |
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Joint Venture: |
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|
|
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Holding companies: |
|
|
|
|
|
Fellow subsidiaries |
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,000,000,000 |
Equity Shares |
Rs.2/- each |
Rs.10000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4,225,319,000 |
Equity Shares |
Rs.2/- each |
Rs.8450.600
Millions |
|
|
|
|
|
Of the above:
(a) 213,700,000 (2010: 21,370,000) equity shares of Rs.2/- (2010: Rs.10/-) each allotted for consideration other than cash.
(b) 2,743,154,310 (2010: 274,315,431) equity shares of Rs.2/-
(2010: Rs.10/-)
each are held by Sterlite Opportunities and Ventures Limited (SOVL) - holding
company. SOVL is a subsidiary of Sterlite Industries (
(c) In 2010-11 each existing Share of the face value of Rs.10/- each was subdivided into 5 shares of face value of Rs.2/- each. Post this split, 2,112,659,500 (2010: nil) equity shares of ` 2/- each were alloted as Bonus shares by capitalization of General Reserves.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
8450.600 |
4225.300 |
4225.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
216881.300 |
177014.400 |
139350.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
225331.900 |
181239.700 |
143575.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
83.000 |
|
|
2] Unsecured Loans |
3.900 |
604.700 |
3.900 |
|
|
TOTAL BORROWING |
3.900 |
604.700 |
86.900 |
|
|
DEFERRED TAX LIABILITIES |
9447.000 |
7112.300 |
5588.600 |
|
|
|
|
|
|
|
|
TOTAL |
234782.800 |
188956.700 |
149251.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
72542.100 |
61640.900 |
41049.200 |
|
|
Capital work-in-progress |
8752.300 |
11129.600 |
11083.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
93345.900 |
109491.700 |
69288.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7623.800
|
4517.400
|
5456.600
|
|
|
Sundry Debtors |
2088.900
|
1518.300
|
1649.400
|
|
|
Cash & Bank Balances |
56329.100
|
9275.300
|
27191.500
|
|
|
Other Current Assets |
2324.400
|
69.600
|
408.300
|
|
|
Loans & Advances |
7523.100
|
4571.900
|
3133.200
|
|
Total
Current Assets |
75889.300
|
19952.500 |
37839.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4748.400
|
4776.600
|
3722.200
|
|
|
Other Current Liabilities |
5327.600
|
5086.000
|
4306.000
|
|
|
Provisions |
5670.800
|
3395.400
|
1981.300
|
|
Total
Current Liabilities |
15746.800
|
13258.000 |
10009.500 |
|
|
Net Current Assets |
60142.500
|
6694.500
|
27829.500
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
234782.800 |
188956.700 |
149251.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
99121.400 |
80169.700 |
56802.700 |
|
|
|
Other Income |
9792.100 |
7176.800 |
9312.300 |
|
|
|
TOTAL (A) |
108913.500 |
87346.500 |
66115.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Mining and Manufacturing |
37128.600 |
24986.600 |
22942.800 |
|
|
|
Increase / Decrease of Stock |
(1556.400) |
753.200 |
(243.800) |
|
|
|
Employees remuneration and benefits |
5107.800 |
4573.600 |
3648.900 |
|
|
|
Administrative and Selling |
3485.000 |
3110.300 |
3113.200 |
|
|
|
Exceptional Items |
211.600 |
|
|
|
|
|
TOTAL (B) |
44376.600 |
33423.700 |
6762.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
64536.900 |
53922.800 |
36653.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
194.000 |
439.200 |
218.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
64342.900 |
53483.600 |
36435.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4747.400 |
3342.500 |
2852.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
59595.500 |
50141.100 |
33582.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
10590.600 |
9727.000 |
6306.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
49004.900 |
40414.100 |
27276.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
98950.600 |
66492.800 |
46194.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
5000.000 |
5000.000 |
5000.000 |
|
|
|
Dividend |
4225.300 |
2535.200 |
1690.100 |
|
|
|
Tax on Dividend |
685.500 |
421.100 |
287.300 |
|
|
BALANCE CARRIED
TO THE B/S |
138044.700 |
98950.600 |
66492.800 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. basis |
36860.900 |
27901.600 |
20352.300 |
|
|
TOTAL EARNINGS |
36860.900 |
27901.600 |
20352.300 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1847.900 |
0.000 |
0.000 |
|
|
|
Stores & Spares |
7233.900 |
3024.800 |
3155.100 |
|
|
|
Capital Goods |
1724.600 |
7272.400 |
1599.000 |
|
|
TOTAL IMPORTS |
10806.400 |
10297.200 |
4754.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.60 |
9.56 |
6.45 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
28470.700 |
26368.200 |
27868.100 |
|
Total Expenditure |
12547.700 |
11720.200 |
14228.700 |
|
PBIDT (Excl OI) |
15923.000 |
14648.000 |
13639.400 |
|
Other Income |
3553.600 |
3867.800 |
4165.900 |
|
Operating Profit |
19476.600 |
18515.800 |
17805.300 |
|
Interest |
64.900 |
120.300 |
50.900 |
|
Exceptional Items |
(44.200) |
(238.600) |
(64.300) |
|
PBDT |
19367.500 |
18156.900 |
17690.100 |
|
Depreciation |
1345.300 |
1455.200 |
1590.700 |
|
Profit Before Tax |
18022.200 |
16701.700 |
16099.400 |
|
Tax |
3073.100 |
3254.800 |
3363.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
14949.100 |
13446.900 |
12736.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
14949.100 |
13446.900 |
12736.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
44.99
|
46.24
|
41.25
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
60.12
|
62.54
|
59.12
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
40.15
|
61.45
|
42.57
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.27
|
0.23
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.07
|
0.07
|
0.07
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.82
|
1.50
|
3.78
|
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
-- |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
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20) Export / Import details (if applicable) |
No |
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21) Market information |
-- |
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22) Litigations that the firm / promoter |
-- |
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23) Banking Details |
Yes |
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24) Banking facility details |
Yes |
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25) Conduct of the banking account |
-- |
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26) Buyer visit details |
-- |
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27) Financials, if provided |
Yes |
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28) Incorporation details, if applicable |
Yes |
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29) Last accounts filed at ROC |
Yes |
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30) Major Shareholders, if available |
No |
MARKET OVERVIEW
- ZINC
GLOBAL MARKET
In FY 2011, world Zinc consumption increased by a phenomenal
14% to 11.6 Mt. The ongoing process of urbanization and industrialization,
especially in the developing economies of
In FY 2011, the average Zinc LME price per tonne increased
to $ 2,185, compared to $ 1,936 in the previous year. Asia (excluding
INDIAN MARKET
Indian demand for refined Zinc was around 501 Kt in FY 2011.
The Indian Zinc demand is expected to grow in the coming years, based on a
positive GDP forecast. The key components for growth are ongoing and upcoming
infrastructure projects, telecom and power projects and automobile sector.
Infrastructure projects worth Rs.700000.000 millions have already
been approved by the Indian Government, including various projects for railway
electrification, ports, airports and power projects, etc. In the long-term,
they see a promising future for Zinc demand in
They hold around 82% share of the Indian Zinc demand, where
they see a 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
Galvanising: 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. Galvanising accounts for around 48% of global Zinc usage.
Zinc Oxide: The most widely used Zinc compound, Zinc Oxide is used in the vulcanisation 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 usage.
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.
- LEAD
GLOBAL MARKET
The demand for refined Lead increased by 9% to 9.18 Mt in FY 2011, as compared to 8.43 Mt in FY 2010. Replacement battery demand, mainstay of Lead consumption with the recovery in automobiles OEMs production, was able to push Lead on the path of recovery to a 9% growth. At the same time, the global Lead smelter production was 9.44 Mt.
This left the refined Lead market in surplus, barely by 260 kt for the year. In FY 2011, the average Lead LME price per tonne increased to $ 2,244, as compared to $ 1,990 in the previous year.
INDIAN MARKET
Indian Lead market grew by 7% to 380,000 tonnes in FY 2011,
as compared to the previous year. Asia has become the new growth centre of the
world, with
The Replacement market demand is growing year after year with an increased number of vehicles on the road. Power deficit in the country is resulting in an increased need of power backup and inverter battery. With the projected automobile and infrastructure growth, the Indian Lead demand is expected to grow and sustain the 7% rate in the coming years. The demand of the Indian Battery industry is estimated to be around 90% of the Indian Lead demand. Their share in the domestic market is around 15% in the total Lead market (including alloys), and
25% in the pure Lead market (excluding alloys).
APPLICATIONS OF
LEAD
The battery sector is the single largest consumer of Lead, accounting for around three-quarters of the demand. It can be sub-divided into the following groups:
- SLI (Starting-Lighting-Ignition) batteries, which currently account for around half of the total Lead demand. These are mainly used in cars and light vehicles, but are also found in other applications such as golf carts and boats. SLI battery demand in turn can be split into original equipment and replacement, with replacement demand outstripping original equipment demand by about 4:1 in mature markets.
- Industrial batteries, which currently consume around a quarter of the total Lead produced. This sector can be split roughly 50:50 into stationary and traction batteries. Stationary batteries are principally used in back up power supply systems; traction batteries are used for motive power in equipment such as forklift trucks and motorized wheelchairs. The remainder is used in non-battery applications. The second largest current end use of Lead for non-battery applications, accounting for around 8% of Lead consumption, is the chemical industry, in the form of Lead-based pigments and other compounds. Principal markets are for cathode ray tubes used in television screens and computer monitors, and for Poly Vinyl Chloride (PVC) stabilisers.
- SILVER
GLOBAL MARKET
In FY 2011, the demand for Silver remained buoyant at around 980 million ounces, a 10% growth as compared to the previous year. The demand by fabrication has seen a growth of 10% this year, as a recovery in industrial uses and a robust growth in coins, investment and a modest rise in jewellery; but a decline in Silverware was witnessed due to losses in India on account of the price. Mine production rose by 5% and supply side (supported by higher Scrap supply) by 10% this year. Due to the higher investment demand and modest industrial growth, the Silver demand is expected to further rise in the next year. Average annual price for Silver in FY 2011 was $ 23.84 per ounce, up by 60% year on year.
INDIAN MARKET
The Indian demand for Silver was higher by 8% at around 3,120 tonnes in FY 2011, as compared to the previous year. Indian Silver demand is expected to grow on the back of prospective growth in electrical and other industrial segments, and Silver becoming a preferred investment asset along with Gold.
APPLICATIONS OF
SILVER
- Industrial
applications: brazing alloys, electrical
contacts, high capacity Silver-Zinc
or Silver-Cadmium batteries,
printed circuits and other electronic
applications.
- Other
applications: jewellery, Silver plating,
Silverware, photography, Dental
alloys and more.
INTRODUCTION TO
OPERATIONAL PERFORMANCE
Their products include refined Zinc metal, refined Lead metal,
Silver, Cadmium and Sulphuric Acid. They are the world’s largest integrated
Zinc producer and also the largest Silver producer in
Most of their 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.
MINING
OPERATIONS
RAMPURA
AGUCHA MINE
The Rampura Agucha Mine (RAM) achieved a record production of 746,199 tonnes of Contained Zinc and Lead during the year, an increase of 12% as compared to the previous year. This increase in production volume is primarily on account of the successful ramp-up of the 1 mtpa Zinc concentrator commissioned in March 2010. The reserves and resources of Rampura Agucha Mine as on 31 March 2011 are 114.36 Mt.
It is an open pit mine which was commissioned in 1991. It is
located 230 km 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 Analyser to ensure faster and accurate readings of different metal percentages in the various streams; and Froth Image Analyser that provides an actual image of the froth bubbles in order to facilitate an effective quality control. It also possesses
An excellent infrastructural as well as software support. Rampura Agucha Open pit achieved a total excavation of 83 mt – an increase of 43% over the previous year, due to the successful ramp-up of the operation from the fleet of 34 m3 excavators and 221 mt class dumpers. Effective implementation and the use of advanced technologies like the Truck Dispatch System for the HEMM fleet management, the Simulator for providing training to the HEMM operators, and the Slope Stability Radar for real time monitoring of any movement in the pit wall has helped ensure safe operation with high level of operational efficiency and increased overall volumes.
RAMPURA AGUCHA OPEN PIT ACHIEVED A TOTAL EXCAVATION OF 83MT – AN
INCREASE OF 43% OVER THE PREVIOUS YEAR.
Rampura Agucha Underground mine development and associated
infrastructure development work continues as per schedule and in conformity
with the outcomes of the feasibility studies done by internationally reputed consultants. Underground mining is planned beyond the ultimate open pit depth of 372 metres from the surface. RAM underground project has state-of-the-art infrastructure facilities and mining equipments, including the Shotcreting machine (for the first time in the Indian mining industry), 17 tonne loaders, 30 tonne LPDT (Low Profile Dump Trucks), twin boom jumbo drill machines and other support equipments.
The process for carrying out
detailed engineering work for shaft sinking (900 metres depth) has also begun.
These initiatives will facilitate a faster rate of the underground mine
development and the targeted production from RAM on a sustainable basis.
SINDESAR KHURD
MINE
During FY 2011, their Silver-rich
Sindesar Khurd Mine (SKM) achieved its highest ever Contained Zinc and Lead
production of 37,110 tonnes, up by 34% as compared to the previous year. This
was primarily on account of the successful commissioning of the new 1.50 mtpa
concentrator, an increase in the working area and the restheirces, better
utilization of the resources as well as improved work practices.
They have accelerated the pace of rampup at SKM with the commissioning of 1.50 mtpa concentrator. By the exit of FY 2011, the concentrator had already achieved a production run rate of around 85% of the total capacity.
Reserves and resources of the Sindesar Khurd mine as on 31 March 2011 are 67.94 mt. It is a Silver rich mine with an average Silver content of 180 ppm in the ore.
It is located 80 km north-east of
There are 3 personnel carriers and
a host of other utilities to facilitate underground mining operations.
Mechanised mine development techniques are being adopted for better development
progress and productivity.
EXPANSIONS
They have successfully
commissioned the new 1.50 MTPA concentrator at SKM, thereby increasing the ore
production capacity from 0.50 MTPA to 1.50 MTPA.
RAJPURA DARIBA MINE
Rajpura Dariba Mine (RDM) produced
28,413 tonnes of Contained Zinc and Lead during FY 2011, higher by 4% as
compared to FY 2010, due to the enhancement in mill recovery and other
operational efficiencies. Bulk concentrate production at Rajpura Dariba has
resulted in significant recovery improvements in Zinc, Lead and Silver.
Reserves and resources of Rajpura Dariba Mine as on 31 March 2011 are 49.39 Mt.
It is located about 76 km north-east of
The mine is equipped with world-class
infrastructural facilities, including a central workshop. Rajpura Dariba Mine’s
concentrator is a conventional grinding and froth flotation circuit.
Significant technical up gradations/process improvements undertaken during the
year include commissioning of the surface ramp in the North Lode area and the
introduction of the 20 Mt capacities LPDT 320 lowered through the Vertical
Shaft (6.0 metre diameter) to a 600 Metre depth. The highly efficient
Ventilation Fan with VFD has been commissioned at 1900N grid in record time to
improve the ventilation system in North Lode.
During the year, they have
completed the recovery improvement project at RDM mill, thereby improving the
Zinc and Lead recoveries considerably.
ZAWAR MINE
During FY 2011, Zawar Mines (ZM) achieved a production level of 28,331 tonnes of Contained Zinc and Lead, 38% lower as compared to FY 2010. This was primarily due to the complete suspension of operations at three of the four mines comprising of the Zawar group of Mines, and a partial suspension at the fourth. The renewal of the mining lease for the Zawar group of mines was applied on 25 November 2008. As a part of the mining lease was falling on the forest land, approval from the forest department for diversion of the land was required. In view of the honourable Supreme Court’s order dated 19 February 2010, regarding mining in the Aravali Hills of Rajasthan, forest clearance was kept pending. The Company had represented the matter at various forums and also filed a writ in the Supreme Court. The Forest Advisory Committee (FAC) has already submitted its recommendation to the Supreme Court. All other approvals, as are required for the renewal of the mining lease, are in place. The matter is now pending in the Supreme Court, and they are awaiting a final hearing. They have treated the ore produced at RAM at ZM mill during the year, in order to utilise the idle capacity of the mill. The mine lease renewal at ZM is currently pending the directions from the Supreme Court.
Reserves and resources of the Zawar Mines as on 31 March
2011 are 65.86 mt. It is located about 40 km south of
Several safety improvement and water conservation initiatives; and other technical up gradations were undertaken during the year in order to improve the operational performance.
SMELTING
OPERATIONS
CHANDERIYA
LEAD-ZINC SMELTER
Chanderiya Lead-Zinc Smelter (CLZS) is one of the largest Zinc smelting complexes in the world with Zinc production capacity of 525,000 tonnes per annum (tpa). During FY 2011, CLZS achieved a production of 424,418 tonnes of refined Zinc metal and 63,192 tonnes of refined Lead metal. The refined Silver production during the year was 179,079 kg. The total Zinc-Lead metal production capacity at CLZS is 610,000 tpa. The Silver production capacity at CLZS is 168 tpa. It also has 828,500 tpa Sulphuric Acid and 234 MW thermal power generation capacity. The complex includes two known as Roast-Leach-Electro winning (RLE) process, which comprises of Roasting, Leaching and purification, Electro-winning and Melting and Casting. Pyrometallurgical Lead-Zinc Smelter employs Imperial Smelting Technology which enables the simultaneous production of Zinc and Lead metals through a pyrometallurgical process route.
The business excellence and quality improvement initiatives
at CLZS have been widely recognised by way of the prestigious ‘IMC Ramakrishna
Bajaj National Quality Award – Performance Excellence Trophy’, for the second year in succession. Winning this award is testimonial of the fact that the organisation is performing exceedingly well on critical aspects of management that contribute to performance excellence. This award is at par with Malcom Baldrige National Quality Award,
ZINC SMELTER DEBARI
Zinc Smelter Debari (ZSD) produced
84,839 tonnes of refined Zinc metal, during FY 2011. It is located about
20 km from
The power requirement is met by
their captive thermal plant located in Zawar. It also has a 14.81 MW power
generation capacity from Diesel Generator set and 6.5 MW from Waste Heat
Recovery.
ZINC SMELTER VIZAG
Zinc Smelter Vizag (ZSV) achieved
a production of 38,663 tonnes of refined Zinc metal during the year. ZSV is
located in Vizag, in the State of
It operates on the hydro-metallurgical Roast-Leach-Electro winning technology. Apart from the production plants, ZSV’s state-of-the-art facilities also include the Tail Gas Treatment Plant, Effluent Treatment Plant, the Reverse Osmosis Plant, the Zinc Oxide Plant, the Diesel Power House (3.2 MWX3), the Compressor House, an Auto Garage, a Mechanical and Electrical Workshop. Its power is supplied by the Andhra Pradesh Gas and Power Corporations Limited (APGPCL) and APTRANSCO; water is supplied by the Greater Vizag Municipal Corporation.
DARIBA SMELTING
COMPLEX
Dariba Smelting Complex (DSC)
achieved a production of 164,551 tonnes of refined Zinc metal. The successful ramp-up
of the 210,000 tpa Hydro Zinc smelter commissioned in March 2010 has had a
visible operational impact in the current fiscal. The year has also witnessed
the successful commissioning of the 160 MW (80X2) Captive Power Plants (CPP).
Commissioning of the 100,000 tpa Lead Smelter is expected to be completed in Q1
FY 2012 , post which, HZL’s total Zinc
- Lead metal production capacity will increase to 1064,000 tpa.
The total Zinc metal production capacity at DSC is 210,000 tpa.
It has 306,000 tpa Sulphuric Acid and 160 MW thermal power generation capacity.
DSC is located about 80 km from
The operational excellence/quality improvement initiatives undertaken during the year include installation of an automated underflow in the Roaster, control logic with controller tuning to control furnace draft in auto mode and Calcine Pneumatic Denseveyor operation in level mode.
FINANCIAL REVIEW
Financial information is presented
in accordance with the Accounting Standards (AS). Their reporting currency is
Indian Rupees (INR). The current fiscal has been excellent in terms of volume
ramp-ups, financial performance, enhanced operational efficiencies and improved
LME prices. Hindustan Zinc continues to maintain its cost competitiveness and
sustainable growth and profitability. Table 1 presents the summary of financial
performance during the year FY 2011.
PERFORMANCE REVIEW
FY 2011 has been remarkable in terms of volume growth and capacity additions. They have successfully commissioned their 1.50 mtpa concentrator at Sindesar Khurd. It is ramping up well and is expected to achieve its rated capacity in FY 2012. The 100 ktpa Lead smelter at Dariba is expected to commission by Q1 FY 2012, post which their Zinc-Lead metal production capacity will increase to 1,064 ktpa. Driven by significant volume ramp-ups during the year, the Company recorded its highest ever Zinc-Lead mined metal production of 840,053 tonnes, up by 9% compared to the previous year.
Refined Zinc metal production was highest ever at 712,471 tonnes in FY 2011, up by 23% compared to the previous year. Refined Lead metal production was 12% lower at 63,192 tonnes in FY 2011, compared to the previous year. Refined Silver production for the year was higher at 179,079 kg, compared to the previous year.
EXPLORATION
Ongoing exploration activities have yielded significant success with an increase of 22.1 million tonnes to the reserves and resources, prior to a depletion of 7.5 million tonnes in FY 2011. Contained Zinc-Lead metal has increased by 1.4 million tonnes, prior to a depletion of 0.84 million tonnes during the same period. Contained Silver has increased to 885 million ounces from 832.8 million ounces last year. Total reserves and resources as at
31 March 2011 were 313.2 million tonnes containing 34.7 million tonnes of Zinc-Lead metal and 885 million ounces of Silver. The reserves and resources position has been independently reviewed and certified as per the JORC standard.
RENEWAL OF MINING
LEASE
The renewal of the mining lease for Zawar group of mines was
applied on 25 November 2008. As a part of the mining lease was falling on the
forest land, approval from the
SALES
Zinc metal sales in the domestic market during the year were 411,617 tonnes, while export sales accounted for 300,986 tonnes. Lead metal sales in the domestic market during the year were 57,204 tonnes, with the export sales accounting for 25 tonnes. Sales during the year were augmented by sale of 65,957 Dry Metric Tonnes (DMT) of surplus Zinc concentrate and 38,457 DMT of surplus Lead concentrate.
FINANCIAL
PERFORMANCE
The Company reported Net profits of ` 4,901 Crores during the year, up by 21% compared to the previous year. This was primarily on account of higher volumes, increased LME prices and improved operational efficiencies.
The Company’s financial performance has been discussed in detail in the chapter on Management Discussion and Analysis which forms a part of this Annual Report.
PROJECTS
The current fiscal has witnessed successful commissioning of the 1.50 mtpa concentrator at Sindesar Khurd. They have also added 160 MW (80X2) captive power generation capacity at Dariba, during the year. The pace of volume ramp up at Sindesar Khurd has been accelerated with the commissioning of the 1.50 mtpa concentrator. The concentrator had already achieved a production level of around 85% of the capacity, as they exited the year. Their Silver production capacity is expected to leap to 500 tonnes by the end of FY 2012, on the back of volume ramp up at Sindesar Khurd and Rampura Agucha and various recoveries improvement measures. After the commissioning of the 100 ktpa Lead Smelter, the Company will cross the one million tonne landmark in metal production capacity.
They have also announced an addition of 150 MW in their existing 123.2 MW wind power capacity. Of this 47.7 MW has been commissioned in March 2011. The balance is expected to get commissioned towards the end of Q2 of FY 2012. Their existing portfolio of assets continues to deliver superior performance; and they continue to pursue further organic/ inorganic growth opportunities
Contingent
Liability:
|
Particulars |
31.03.2011 |
31.03.2010
|
|
|
Rs.
In Millions
|
|
|
Claims against the Company
not acknowledged as debts (Matters pending in court/arbitration. No cash out
flow is expected in future) |
|
|
|
- Suppliers and
contractors |
645.900 |
606.200
|
|
- Employees,
ex-employees and others |
199.300 |
128.300
|
|
- Land Tax |
2.700 |
2.700
|
|
- Mining cases |
3339.000 |
3339.000
|
|
Guarantees issued by the banks (Bank guarantees are provided under legal/contractual obligation. No cash out flow is expected in future) 46.02 27.91 |
460.200 |
279.100
|
|
Sales tax demands (This pertains to disputes in respect of tax rate difference/classification, stock transfer matters. No cash out flow is expected in future) |
347.800 |
370.200
|
|
Income tax (No cash out flow is
expected in future) |
5568.600 |
3966.400
|
|
Excise Duty demands (This pertain to Modvat/Cenvat credit availed on inputs, capital goods, alleged duty demand on captive use of the goods. No cash out flow is expected in future) |
711.900 |
490.900
|
|
Bills Discounted (No cash out flow is expected in future) |
3451.100 |
1058.100
|
|
Claim for compensation (CLZS land) |
Not ascertainable |
Not ascertainable |
2. Estimated amount of contracts remaining to be executed on capital account not provided for Rs.6436.400 millions (2010 Rs.4704.000 millions)
3. The Company has export obligations of Rs.3600.000 millions (2010: Rs.4653.700 millions) against the import licenses taken for import of capital goods under Export Promotion Capital Goods and Advance License Scheme.
4. The title deeds are still to be executed in respect of 10.63 acres of freehold land at Vishakapatnam.
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
KEY FINANCIAL INFORMATION
KEY FINANCIAL HIGHLIGHTS FOR FY 2011
- Revenue of Rs.99120.000 Millions and PBDIT of Rs.64540.000 Millions.
- Highest ever production of Zinc-Lead Mined metal, Refined Zinc metal and Silver.
- Stable operating costs, supported by higher volumes and increased operational efficiencies.
- Return on capital employed (ROCE) continues to be strong at 56.06%
- Strong balance sheet with shareholders fund base of Rs.225330.000 Millions.
- Cash flow and liquid investments of Rs.149650.000 Millions
- Earnings per share of Rs.11.60
Key Performance
Indicators
(Rs. In Millions)
|
Particulars |
2011 |
2010 |
2009 |
2008 |
2007 |
|
|
|
|
|
|
|
|
Revenue |
99120.000 |
80170.000 |
56800.000 |
78780.000 |
85600.000 |
|
PBDIT |
64540.000 |
53920.000 |
36650.000 |
62310.000 |
66390.000 |
|
ROCE (%) |
56.06% |
57.51% |
44.07% |
93.58% |
138.96% |
|
EPS (Rs) |
11.60 |
9.56 |
6.45 |
10.40 |
10.51 |
|
|
|
|
|
|
|
Definitions of Key
Financial Terms
Revenue
Revenue on sale of products (net of volume rebates) is recognized on delivery of product and/or on passage of title to the buyer. Sales include export benefits. Export benefits are recognized on recognition of export sales.
ROCE (Return on
Capital Employed)
ROCE (Return on Capital Employed) This is calculated on the basis of PBIT before exceptional items & other non operational incomes/expenses, net off effective tax; as a ratio of capital employed in business as at the balance sheet date. Capital employed is shareholders fund & loan funds, net off non operational net cash and investments after adjusting the non operational debt. The objective is to earn consistently a return to ensure that capital is invested efficiently and this indicator measures the efficiency of our productive capital.
PBDIT (Profit Before
Depreciation Interest and Taxes)
PBDIT is a factor of volumes, prices and costs of production. This is calculated by adjusting operating profits, depreciation interest and amortisation. Our objective is to take advantage of our low cost base to achieve the best possible margins across the Businesses.
EPS (Earnings Per Share)
EPS is the net profit attributable to equity shareholders. By producing a stream of profits and EPS we will be able to pay a progressive dividend to our shareholders. EPS growth also demonstrates that our capital structure is being managed efficiently.
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 and 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
PRESS RELEASE
Hindustan Zinc
Limited
Production Release
for the Second Quarter and Half Year Ended 30 September 2011
Q2 Highlights
- Mined metal
production up by 2%
- Refined
Zinc-Lead metal production up by 5%
- Refined Silver
production up by 12%
- Commissioned
the 100ktpa Lead smelter at Dariba – taking total Zinc and Lead capacity to 1.064mtpa
Operational
Performance
Mined metal production in Q2 and H1 was 210,000 tonnes and 398,000 tonnes,
up 2% and 3% respectively, as compared with the corresponding prior periods.
This reflects near normal production at Rampura Agucha following the
maintenance shutdown in Q1. Refined Zinc production in Q2 and H1 was 185,000
tonnes and 378,000 tonnes, up 5% and 11% respectively, as compared with the
corresponding prior periods. This was primarily on account of improved
operational performance at our hydro smelters. Refined Lead production in Q2
and H1 was 17,000 tonnes and 33,000 tonnes, up 6% and 6% respectively, as
compared with the corresponding prior periods. This was primarily due to volume
contribution from the new 100kt Dariba Lead smelter which was commissioned and
capitalized during the quarter.
Refined Silver production in Q2 and H1 was 49,000 kg and 96,000 kg, up
12% and 10% respectively, as compared with the corresponding prior periods. The
increase in production was mainly attributable to higher silver content in the
mined ore and improved plant efficiencies.
Growth Projects
Ramp-up of the Sindesar Khurd mine is on track to achieve its targeted
2.0mtpa capacity by the end of the year. The 100ktpa Dariba Lead smelter was
commissioned during the quarter, taking the total refining capacity for Lead to
185ktpa. The new Silver refinery is scheduled to be commissioned in Q3 FY2012.
With the ramp-up of SK mine and commissioning of the Silver refinery, our
Silver capacity will reach 500 tonnes by the end of the year.
We have commissioned 105MW of the 150MW expansion in wind power
generation capacity announced in January 2011. The balance capacity is expected
to be commissioned in Q3 FY2012. Post the expansion, the Company’s wind power
generation capacity will increase to 273MW.
Production Summary
(Unaudited) (in ‘000 tonnes, except as
stated)
|
Particulars |
Quarter
Ended 30 September |
Half
Year Ended 30 September |
||||
|
|
2011 |
2010 |
Change % |
2011 |
2010 |
Change % |
|
Mined Metal Production |
210 |
205 |
2% |
398 |
387 |
3% |
|
Zinc and Lead |
|
|
|
|
|
|
|
Refined Metal Production |
185 |
176 |
5% |
378 |
341 |
11% |
|
Zinc |
17 |
16 |
6% |
33 |
31 |
6% |
|
Lead1 |
49 |
44 |
12% |
96 |
87 |
10% |
|
Silver2 (in ‘000 kg) |
|
|
|
|
|
|
|
Energy (in million units) |
|
|
|
|
|
|
|
Surplus from CPP’s |
25 |
19 |
29% |
36 |
20 |
76% |
|
Wind Power |
94 |
52 |
82% |
200 |
120 |
66% |
(1) Includes captive
consumption of 1,348 tonnes and 2,739 tonnes in Q2 FY2012 and H1 FY2012, as compared
with 1,646 tonnes and 2,812 onnes in corresponding prior periods, respectively.
(2) Includes captive
consumption of 7,193 kg and 14,389 kg in Q2 FY2012 and H1 FY2012, as compared with
8,612 kg and 14,745 kg in corresponding prior periods, respectively.
Results for the third
quarter and nine months ended 31 December 2011
“Continuous growth sustains global leadership; Silver refining capacity
@ 500tpa” Q3 Highlights
Operational Performance
- Record Refined Lead production at 28,800 tonnes
- Record Refined Silver production at 57,600 kg
- Refined Zinc production up 7% at 190,950 tonnes
- Commissioned the 350tpa Silver refinery
Financial Performance
- Revenue up 6% at Rs.27470.000 millions.
- Strong balance sheet with cash and cash equivalents of Rs.162550.000 millions.
Exploration
- Exploration activities resulted in 23 PL* and 3 ML applications2*
- Commenced
mine development at
- SMARTem geophysical system successfully commissioned - further strengthening exploration technology base
Mr. Agnivesh Agarwal (Chairman, Hindustan Zinc) – “We remain committed to enhancing stakeholders’ wealth driven by our global leadership position, large reserves and resources base, strong liquidity position and cash flow generation, and low cost operations. We continue to improve and expand our existing assets while consistently evaluating opportunities for further organic/inorganic growth.”
Mumbai: Hindustan Zinc Limited (“HZL” or the
“Company”) today announced its unaudited results for the third quarter (“Q3”)
and nine months (“nine months period”) ended 31 December 2011.
Unaudited Financial
Summary
(Rs. In Millions)
|
Particulars |
Quarter
Ended 31 December |
Half
Year Ended 30 September |
||||
|
|
2011 |
2010 |
Change % |
2011 |
2010 |
Change % |
|
Net Sales/Income from operations |
|
|
|
|
|
|
|
Zinc |
20040.000 |
21240.000 |
-6% |
61440.000 |
55210.000 |
11% |
|
Lead |
3080.000 |
2250.000 |
37% |
7260.000 |
5410.000 |
34% |
|
Silver |
2570.000 |
1530.000 |
68% |
8230.000 |
3730.000 |
121% |
|
Others |
1780.000 |
990.000 |
80% |
4690.000 |
2800.000 |
68% |
|
Total |
27470.000 |
26010.000 |
6% |
81620.000 |
67150.000 |
22% |
|
Cash Profit (Net Profit +
Depreciation) |
14330.000 |
14090.000 |
2% |
45520.000 |
34770.000 |
31% |
|
Profit After Taxes |
12740.000 |
12900.000 |
-1% |
41130.000 |
31290.000 |
31% |
|
Earnings Per Share (Rs.) |
3.01 |
3.05 |
-1% |
9.73 |
7.41 |
31% |
|
Production - Mined Metal (Tonnes) |
209007 |
222249 |
-6% |
607086 |
609015 |
0% |
|
Zinc and
Lead |
|
|
|
|
|
|
|
Production - Refined Metal (Tonnes) |
|
|
|
|
|
|
|
Zinc |
190946 |
178254 |
7% |
568742 |
519012 |
10% |
|
Lead (1) |
28804 |
14267 |
102% |
62000 |
45744 |
36% |
|
Silver (in kg) (2) |
57595 |
42013 |
37% |
153651 |
129275 |
19% |
(1) Includes captive consumption of 1,730
tonnes in Q3 FY2012 vs. 1,746 tonnes in Q3 FY2011, and 4,469 tonnes in ‘nine
months period’ FY2012 vs. 4,558 tonnes in ‘nine months period’ FY2011.
(2) Includes captive consumption of 9,182 Kgs.
in Q3 FY2012 vs. 9,236 Kgs. in Q3 FY2011, and 23,571 Kgs. in ‘nine months
period’ FY2012 vs. 23,981 Kgs. in ‘nine months period’ FY2011.
Operational
Performance
Mined metal production in Q3 was marginally lower at 209,007 tonnes, compared with the corresponding prior quarter. Refined Zinc production in Q3 was up 7% at 190,946 tonnes, as compared with the corresponding prior quarter, primarily on account of improved throughput and operational efficiencies. Refined Lead production in Q3 was highest ever at 28,804 tonnes, up 102% as compared with the corresponding prior quarter. This was primarily due to volume contribution from the newly commissioned 100kt Dariba Lead smelter, currently under ramp-up. Refined Silver production in Q3 was highest ever at 57,595 kg, up 37% as compared with the corresponding prior quarter. This was mainly attributable to higher input from the mines and volume contribution from the new 350tpa Silver refinery commissioned during the quarter.
Financial Performance
Revenues for Q3 were up 6% at Rs.27470.000 millions, compared with the corresponding prior quarter. The positive impact of increased volumes and INR depreciation was partially offset by the decline in LME prices. Net profit for the quarter was marginally lower at Rs.12740.000 millions. The Zinc metal cost, without royalty, during the quarter was Rs.40300 per MT ($785), 13% higher in INR, compared with the corresponding prior quarter. The positive impact of operational efficiencies was more than offset by increase in commodity prices and other inflationary factors. During Q3, average Zinc and Lead LME prices were $1,897 per tonne and $1,983 per tonne respectively, compared with $2,315 per tonne and $2,390 per tonne, in the corresponding prior quarter. The average Silver Cash Settlement Price per London Bullion Market Association increased to $31.87/oz in Q3 FY2012 from $26.43/oz in the corresponding prior quarter.
Expansion Projects
Ramp-up of the Sindesar Khurd mine is on track to achieve its targeted 2.0mtpa capacity. The 100ktpa Dariba Lead smelter, commissioned during Q2, is ramping up well. The new 350tpa Silver refinery has been successfully commissioned during the quarter. The mine development work at proposed 1.0mt Kayar mine has commenced.
We have commissioned 135MW of the 150MW expansion in wind power generation capacity announced in January 2011. The balance capacity is expected to be commissioned in early Q4 FY2012. Post the expansion, the Company’s wind power generation capacity will increase to 273MW.
Liquidity and
investment
Company follows conservative Investment Policy and invests in high quality Debt instruments in Mutual Fund and Fixed Deposit with Bank. As on 31 December 2011, the Company had cash and cash equivalents of Rs.162550.000 millions, out of which Rs.11850.000 millions was invested in debt mutual funds and Rs.4405.000 millions were in fixed deposits with Banks.
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.51.05 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.67.39 |
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.