MIRA
INFORM REPORT
|
Report Date : |
17.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN ZINC LIMITED |
|
|
|
|
Registered
Office : |
Yashad Bhawan,
Yashadgarh, Udaipur – 313004, Rajasthan |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
10.01.1966 |
|
|
|
|
Com. Reg. No.: |
17-001208 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.8450.600
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 1070000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and reputed company having fine track. Financials of the company
appears to be strong and healthy. Directors are reported to be experienced
and respectable businessmen. Trade relations are fair. Business is active.
Payments are reported to be regular 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AAA (Cash Credit) |
|
Rating Explanation |
Having highest degree of safety regarding timely servicing of
financial obligation it carry lowest credit risk. |
|
Date |
January 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Head 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: |
Located at:
|
|
|
|
|
Wind Power Farms: |
Located at:
|
|
|
|
|
Exports / Marketing Office: |
Solitaire Corporate Email: exportzinc@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. 91-11-26280570 /
26463711 / 26419426 Fax No. 91-11-26484614 ·
Chatterjee International Centre, 20th Floor,
33-A, Tel. No. 91-33-22421761 /
22262627 / 22495413 Fax No. 91-33-22457354 ·
47, Mittal Chambers, Nariman Point, Mumbai – 400
021, Tel. No. 91-22-22025903 /
22049317 Fax No. 91-22-22833341 ·
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 Cordial School, Vijay Nagar, Bangalore – 560040, Karnataka,
India Tel. No. 91-80-3300292 / 3305036 |
DIRECTORS
As on: 31.03.2012
|
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 : |
Chief Executive Officer and
Whole time Director |
|
|
|
|
Name : |
Ms. Shaukat Ara Tirmizi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajib Sekhar Sahoo |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Amitabh Gupta |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Rajendra Pandwal |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2743154310 |
64.92 |
|
|
2743154310 |
64.92 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
2743154310 |
64.92 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
46392565 |
1.10 |
|
|
3107856 |
0.07 |
|
|
1247950590 |
29.54 |
|
|
33149089 |
0.78 |
|
|
60544971 |
1.43 |
|
|
1391145071 |
32.92 |
|
|
|
|
|
|
46895139 |
1.11 |
|
|
|
|
|
|
39073109 |
0.92 |
|
|
3124268 |
0.07 |
|
|
1927103 |
0.05 |
|
|
1080852 |
0.03 |
|
|
830000 |
0.02 |
|
|
6251 |
0.00 |
|
|
10000 |
0.00 |
|
|
91019619 |
2.15 |
|
Total Public shareholding (B) |
1482164690 |
35.08 |
|
Total (A)+(B) |
4225319000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
4225319000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing, Selling, Exploration, Mining
and Concentration of Zinc, Lead Silver, Cadmium, Sulphuric Acid, Phosphoric
Acid and Cobalt. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
·
State
Bank of ·
IDBI
Bank Limited ·
ICICI
Bank Limited ·
HDFC
Bank Limited ·
Citi
Bank ·
Calyon
Bank ·
Development
Bank of Singapore ·
Kotak Mahindra Bank Limited ·
Yes Bank Limited |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, |
|
Tel. No.: |
91-22-66679000 |
|
Fax. No.: |
91-22-66679100 |
|
|
|
|
Holding Companies :
|
|
|
|
|
|
Fellow Subsidiaries
: |
|
|
|
|
|
Joint Venture : |
|
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.2/- each |
Rs.10000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4225319000 |
Equity Shares |
Rs.2/- each |
Rs.8450.600
Millions |
|
|
|
|
|
i) Reconciliation of number of shares and amounts outstanding
|
|
Equity Shares |
|
|
Particular |
Number |
Rs. In Millions |
|
Equity shares of Rs.2/- (FY2011 : Rs.10 /-) each outstanding at the beginning of the year |
4225319000 |
8450.600 |
|
Equity Shares outstanding at the end of the year |
4225319000 |
8450.600 |
ii) 2743154310 Equity Shares (FY2011:
2743154310) are held by Sterlite Opportunities and Ventures Limited (SOVL), the
holding company. SOVL is a subsidiary of Sterlite Industries (India) Limited
and the ultimate holding company is Vedanta Recourses PLC, United Kingdom
(VRPLC). No shares are held by VRPLC or its other subsidiaries or associates.
iii) Details of Shareholders holding more than 5% shares in the Company
|
|
FY2012 |
|
|
Name of Shareholder |
No. of Shares held |
% of Holding |
|
Sterlite Opportunities and Ventures Limited |
2743154310 |
64.92 |
|
Government of India- President of India |
1247950590 |
29.54 |
iv) Aggregate number
of bonus shares allotted during the period of five years immediately preceding
March 31
|
Particular |
|
FY2012 |
|
Equity shares allotted as fully paid up by way of bonus |
|
2112659500 |
v) Other disclosures
The Company has one class of equity shares
having a par value of Rs.2 per share. Each equity shareholder is eligible for one
vote per share held. Each equity shareholder is entitled to dividends as and
when declared by the Company .Interim dividend is paid as and when declared by
the Board .Final dividend is paid after obtaining shareholder’s approval.
Dividends are paid in Indian Rupees.
During the year ended March 31, 2012, the
amount of per share final dividend recognised as distribution to equity
shareholders was Rs.0.90 per share (FY2011: Rs.1 per share)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
8450.600 |
8450.600 |
4225.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
260362.000 |
216881.300 |
177014.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
268812.600 |
225331.900 |
181239.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
3.900 |
3.900 |
604.700 |
|
|
TOTAL BORROWING |
3.900 |
3.900 |
604.700 |
|
|
DEFERRED TAX LIABILITIES |
11088.100 |
9447.000 |
7112.300 |
|
|
|
|
|
|
|
|
TOTAL |
279904.600 |
234782.800 |
188956.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
85128.200 |
72542.100 |
61640.900 |
|
|
Capital work-in-progress |
4449.600 |
5948.200 |
11129.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
126948.500 |
93345.900 |
109491.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7979.400
|
7623.800 |
4517.400
|
|
|
Sundry Debtors |
3324.500
|
2088.900 |
1518.300
|
|
|
Cash & Bank Balances |
52553.200
|
56329.100 |
9275.300
|
|
|
Other Current Assets |
3232.000
|
2324.400 |
69.600
|
|
|
Other Non Current Assets |
1635.900
|
1297.700 |
0.000
|
|
|
Loans & Advances |
8978.900
|
9029.500 |
4571.900 |
|
Total
Current Assets |
77703.900
|
78693.400 |
19952.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4102.900
|
3682.400 |
4776.600
|
|
|
Other Current Liabilities |
5803.000
|
6393.600 |
5086.000
|
|
|
Provisions |
4419.700
|
5670.800 |
3395.400
|
|
Total
Current Liabilities |
14325.600
|
15746.800 |
13258.000 |
|
|
Net Current Assets |
63378.300
|
62946.600 |
6694.500
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
279904.600 |
234782.800 |
188956.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
114053.100 |
100391.700 |
80169.700 |
|
|
|
Other Income |
15428.300 |
8660.200 |
7176.800 |
|
|
|
TOTAL (A) |
129481.400 |
109051.900 |
87346.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2176.900 |
1692.300 |
|
|
|
|
Changes in inventories of finished goods and work-in-progress |
944.400 |
(1556.400) |
|
|
|
|
Employee benefits expense |
5346.400 |
5107.800 |
|
|
|
|
Other expenses |
44890.800 |
39070.900 |
|
|
|
|
Exceptional items |
431.300 |
211.600 |
|
|
|
|
TOTAL (B) |
53789.800 |
44526.200 |
33423.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
75691.600 |
64525.700 |
53922.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
139.500 |
182.800 |
439.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
75552.100 |
64342.900 |
53483.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6106.700 |
4747.400 |
3342.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
69445.400 |
59595.500 |
50141.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
14185.000 |
10590.600 |
9727.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
55260.400 |
49004.900 |
40414.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
138044.700 |
98950.600 |
66492.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
5000.000 |
5000.000 |
|
|
|
Dividend |
NA |
4225.300 |
2535.200 |
|
|
|
Tax on Dividend |
NA |
685.500 |
421.100 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
138044.700 |
98950.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. basis |
35703.100 |
36860.900 |
27901.600 |
|
|
TOTAL EARNINGS |
35703.100 |
36860.900 |
27901.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1953.600 |
1847.900 |
0.000 |
|
|
|
Stores & Spares |
9367.700 |
7233.900 |
3024.800 |
|
|
|
Capital Goods |
1731.500 |
1724.600 |
7272.400 |
|
|
|
Others |
13052.800 |
10806.400 |
10297.200 |
|
|
TOTAL IMPORTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
13.08 |
11.60 |
9.56 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
|
|
1st
Quarter |
2nd Quarter |
|
Net Sales |
|
27477.100 |
28654.600 |
|
Total Expenditure |
|
13191.500 |
14223.600 |
|
PBIDT (Excl OI) |
|
14285.600 |
14431.000 |
|
Other Income |
|
5743.000 |
5418.500 |
|
Operating Profit |
|
20028.600 |
19849.500 |
|
Interest |
|
128.800 |
0.000 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
19899.800 |
19849.500 |
|
Depreciation |
|
1733.800 |
1745.700 |
|
Profit Before Tax |
|
18166.000 |
18103.800 |
|
Tax |
|
2352.600 |
2705.900 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
15813.400 |
15397.900 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
15813.400 |
15397.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
42.68 |
44.94
|
46.27
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
60.89 |
53.36
|
62.54
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
42.65 |
36.41
|
61.45
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26 |
0.26
|
0.27
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.05 |
0.07
|
0.07
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.42 |
5.00
|
1.50
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
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 |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
PERFORMANCE REVIEW
They reported revenues and PBDIT of Rs.114050.000 Millions and Rs.75690.000 Millions; up 14% and 17% compared to FY2011. Strong volume growth, operational efficiencies and improved price realization for Silver drove this growth.
This year overall mined metal production was 830,432 tonnes compared to 840,053 tonnes in the previous year. The marginal decline was due to a temporary decline in ore grade at Rampura Agucha mine, partially offset by higher metal recoveries across all mines and increased production at Sindesar Khurd mine, which ramped-up to 80% utilisation in Q4 FY2012.
Refined Zinc production this year was 758,716 tonnes– up 6% compared to FY2011. This was primarily on account of higher utilisation of new generation smelters in Rajasthan, partially offset by ramp-down of Vizag smelter during the fourth quarter. They performed extremely well in refined Lead and Silver production, which is the highest ever at 98,724 tonnes and 242 tonnes – up 56% and 35% respectively. Production of refined Lead and Silver was boosted significantly by the ramp up of Sindesar Khurd mine and commissioning and ramp-up of Dariba Lead smelter and the new Silver refinery.
To add to their performance metrics, their captive power plants too increased generation by 21% to 3,401.7 Million units, compared to FY2011. Their wind power generation capacity went up from 171MW to 274MW and its power generation was up 67% at 335.7 Million units, compared to FY2011.
SUCCESS IN
EXPLORATION
Driving their growth, be it in the past, present or future, is the expansion of reserves and resources. For this, they are continuously pursuing brownfield and greenfield exploration. They have added 27.10 Million tonnes to their reserves and resources this year, prior to a depletion of 8.04 Million tonnes during the period. In the same vein, their contained net Zinc-Lead metal has increased by 1.2 Million tonnes, prior to a depletion of 0.83 Million tones during the period. Contained net Silver has increased to 912 Million ounces from 885 Million ounces last year. Total reserves and resources at March 31, 2012 were 332.30 Million tones containing 35 Million tonnes of Zinc-Lead metal and 912 Million ounces of Silver.
RENEWAL OF ZAWAR
LEASE
The renewal of the mining lease for Zawar group of mines was applied on November 25, 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 February 19, 2010, regarding mining in Aravali Hills of Rajasthan, forest clearance was kept pending. 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 renewal of the mining lease, are in place. Now the matter is pending in the Supreme Court, awaiting final hearing.
SALES
The Zinc metal sales in the domestic market during the year were 438,171 tonnes, while export sales accounted for 320,328 tonnes. Lead metal sales in the domestic market during the year were 74,713 tonnes, with the export sales accounting for 16,988 tonnes.
FINANCIAL PERFORMANCE
The Company reported net profits of Rs.55260.000 Millions during the year, up 13% compared to the previous year. This was primarily on account of higher sales volumes, improved price realisations for silver, rupee depreciation, higher investment income and enhanced operational efficiencies. The Company’s financial performance has been discussed in detail in ‘Management Discussion and Analysis’ which forms a part of this Annual Report.
PROJECTS
Their well thought-out rollouts have imparted a new growth momentum to their enterprise:
Ř Ramped-up Sindesar Khurd mine to 2.0 mtpa capacity
Ř Commissioned the 100 ktpa Lead smelter at Dariba, increasing Lead production capacity to 185 ktpa
Ř Commissioned the new Silver refinery, increasing Silver refining capacity to over 500 tpa
Ř Commenced underground mine development work at Rampura Agucha mine and Greenfield Kayar mine
Ř Commissioned 102MW expansion in wind power, increasing total wind power generation capacity to around 274MW
BOARD OF DIRECTORS
Mr. Agnivesh Agarwal
Chairman
Appointed with effect from 15th November 2005. Mr. Agarwal is an eminent industrialist with a rich knowledge of business operations, an extensive experience in efficiently managing large projects, business restructuring and strategies. Over the years he has successfully developed excellent commercial knowledge with hands-on experience. He is also the Director of The Madras Aluminium Company Limited, (MALCO), Sterlite Iron and Steel Company Limited, Sterlite Energy Limited, Agarwal Galvanizing Private Limited, Sterlite Display Technologies Private Limited, Twinstar Overseas Limited, Twinstar Infrastructure Limited and Twinstar Investment Limited. Mr. Agarwal’s academic credentials comprise graduation in commerce from Sydhenam College, Mumbai.
Mr. Navin Agarwal
Director
Appointed to our Board of Directors on April 11, 2002. Mr. Agarwal has an experience that spans over 21 years in strategic and operational management. He has been the key driver behind our growth story. He is the Chairman of Cairn India Limited, Konkola Copper Mines, Bharat Aluminium Company Limited and the Madras Aluminium Company Limited; Executive Vice Chairman of Sterlite Industries (India)Limited and Director of Sterlite Iron and Steel Company Limited, Vedanta Aluminium Limited, Hare Krishna Packaging Private Limited, Vedanta Resources Holdings Limited and Vedanta Resources Investment Limited. His academic achievements include a Bachelor of Commerce degree from Sydenham College, Mumbai and successful completion of Owner/President Management Program at Harvard University.
Mr. Akhilesh Joshi
Chief Executive
Officer and Whole-time Director
Appointed with effect from 1st February 2012. Earlier, he was appointed on the Board with effect from 21st October 2008 as the Chief Operating Officer and Whole-time Director. He joined the Company in 1976. Prior to becoming the Chief Operating Officer of Subject, he was Senior Vice President (Mines), responsible for managing the overall operations of all mining units. Mr. Joshi has a mining engineering degree from MBM Engineering College, Jodhpur and a post graduate diploma in economic evaluation of mining projects from School of Mines of Paris. He also has a first class Mine Manager Certificate of Competency. He is the recipient of the prestigious National Mineral Award (GOI) in 2006 for his outstanding contribution in the field of Mining Technology. He is also the Director of Madanpur South Coal Company Limited.
Mr. A. R.
Narayanaswamy
Director
Appointed on the Board with effect from 30th March 2009. He is a member of The Institute of Chartered Accountants of India and has an extensive experience in the mining industry. He is also on the Board of Sterlite Industries (India) Limited, Sterlite Technology Limited, IBIS Softec Solutions (Private) Limited, IBIS Logistics (Private) Limited and IBIS Systems and Solutions (Private) Limited
Ms. Anjali Anand
Srivastava
Director
Appointed on the Board with effect from January 10, 2011. Ms. Srivastava is an Indian audit and accounts service officer presently holding the post of Joint Secretary and Financial Advisor in the Ministry of Coal. In addition to above, she is Joint Secretary and Financial Advisor of the Ministry of Mines and Ministry of Youth Affairs andSports. She is also the Director of Coal India Limited, Hindustan Copper Limited and Bharat Aluminium Company Limited
Mr. R.K. Malhotra
Director
Appointed on the Board with effect from 27th October 2010. Mr. Malhotra is an IAS (Indian Administrative Service) officer and presently holds the post of Director, Government of India, Ministry of Mines, New Delhi. He is also on the Board of Bharat Gold Mines Limited and Bharat Aluminium Company Limited.
Ms. Shaukat Ara
Tirmizi
Director
Appointed on the Board with effect from 25th October, 2011. Ms. Shaukat Ara Tirmizi is a M.A. and M.B.A. (University of Slovenia, Europe) with specialization in Finance. She is a retired advisor (Finance) from Department of Telecom, Government of India, Ministry of Communication and Information Technology.
Mr. Rajib Sekhar
Sahoo
Director
Appointed on the Board with effect from 25th October, 2011. Mr. Sahoo is a practicing Chartered Accountant, promoter and principal partner of SRB and Associates, Bhubaneswar. He is also on the Board of NTPC Limited, Tehri Hydro Development Corporation India Limited and Bank of Baroda. He is a member of Task Force on MoU Department of Public Enterprise Government of India for the year FY 2012 and FY 2013. He is a member of Sri Jagannath Temple Managing Committee, Puri and Independent Trustee of Odisha Urban Infrastructure Development Fund (OUIDF) appointed by Government of Odisha. He is also a member of Fee Structure Committee for Professional Educational Institutions of Odisha appointed as per the direction of Supreme Court of India chaired by a Retired High Court Judge since 2007. He is the treasurer of The Indus Entrepreneur (TIE), headquartered in Silicon Valley, USA.
CONTINGENT
LIABILITY:
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
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 |
612.000 |
645.900 |
|
- Employees,
ex-employees and others |
599.700 |
199.300 |
|
- 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 |
622.400 |
460.200 |
|
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) |
651.400 |
347.800 |
|
Entry tax demands (This pertain to disputes in respect of entry tax on goods. No cash out flow is expected in future) |
274.200 |
0.000 |
|
Income tax (No cash out flow is
expected in future) |
7499.200 |
5568.600 |
|
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) |
705.200 |
711.900 |
|
Claim for compensation (CLZS land) |
Not ascertainable |
Not ascertainable |
STATEMENT OF UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30th SEPTEMBER, 2012
(Rs. In Millions)
|
|
P A R T I C U L A R
S |
Quarter Ended |
Half year ended |
|
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Income from
operations |
|
|
|
|
|
a) Net sales/Income from operations (Net of excise duty) |
28223.000 |
27126.700 |
55349.700 |
|
|
b) Other Operating Income |
431.600 |
350.400 |
782.000 |
|
|
Total income from
operations (net) |
28654.600 |
27477.100 |
56131.700 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
3111.800 |
537.300 |
3649.100 |
|
|
b) Changes in inventories of finished goods, work in progress and stock in trade |
(1882.300) |
80.800 |
(1801.500) |
|
|
c) Employees benefits expense |
1546.600 |
1491.800 |
3038.400 |
|
|
d) Depreciation and amortisation expense |
1745.700 |
1733.800 |
3479.500 |
|
|
e) Consumption of Stores and spares |
2883.500 |
2714.300 |
5597.800 |
|
|
f) Power and Fuel |
2618.100 |
2714.800 |
5332.900 |
|
|
g) Mining Royalty |
2028.200 |
2043.800 |
4072.000 |
|
|
h) Other Mining and Manufacturing Expenses |
2842.500 |
2579.900 |
5422.400 |
|
|
i) Other expenses |
1075.200 |
1028.800 |
2104.000 |
|
|
Total Expenses |
15969.300 |
14925.300 |
30894.600 |
|
3 |
Profit from
operations before Other Income, finance costs and Exceptional Items |
12685.300 |
12551.800 |
25237.100 |
|
4 |
Other Income |
5397.600 |
5743.000 |
11140.600 |
|
5 |
Profit from ordinary
activities before finance costs and exceptional Items |
18082.900 |
18294.800 |
36377.700 |
|
6 |
Finance Costs |
(20.900) |
128.800 |
107.900 |
|
7 |
Profit from
ordinary activities after finance costs but before exceptional Items |
18103.800 |
18166.000 |
36269.800 |
|
8 |
Exceptional items (VRS expenses) |
- |
- |
- |
|
9 |
Profit from
ordinary activities before tax |
18103.800 |
18166.000 |
36269.800 |
|
10 |
Tax Expense (N et of MAT credit entitlement) |
2705.900 |
2352.600 |
5058.500 |
|
11 |
Net Profit from
ordinary activities after tax |
15397.900 |
15813.400 |
31211.300 |
|
12 |
Extraordinary items (Net of tax expenses) |
- |
- |
- |
|
13 |
Net Profit for the
period |
15397.900 |
15813.400 |
31211.300 |
|
14 |
Paid up Equity Share Capital - (Face value Rs. 2/- each) |
8450.600 |
8450.600 |
8450.600 |
|
15 |
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year |
- |
- |
- |
|
16.i |
Earnings per share (before extraordinary items) (of Rs 2/- each) (not annualised): |
|
|
|
|
|
a) Basic |
3.64 |
3.74 |
7.39 |
|
|
b) Diluted |
3.64 |
3.74 |
7.39 |
|
16.ii |
Earnings per share (after extraordinary items) (of Rs 2/- each) (not annualised): |
|
|
|
|
|
a) Basic |
3.64 |
3.74 |
7.39 |
|
|
b) Diluted |
3.64 |
3.74 |
7.39 |
|
|
PART II |
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
-Number of shares |
1482164690 |
1482164690 |
1482164690 |
|
|
-Percentage of shareholding |
35.08 |
35.08 |
35.08 |
|
2 |
Promoters and
promoter Group shareholding |
|
|
|
|
(a) |
Pledged/Encumbered |
|
|
|
|
|
- Number of shares |
-- |
-- |
-- |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
|
- Percentage of share (as a % of the total share capital of the company) |
-- |
-- |
-- |
|
(b) |
Non-encumbered |
|
|
|
|
|
- Number of shares |
2743154310 |
2743154310 |
2743154310 |
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
100 |
100 |
100 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
64.92 |
64.92 |
64.92 |
|
|
Particulars |
3 months ended (30.09.2012) |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
4 |
|
|
Disposed of during the quarter |
4 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT WISE REPORTING REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
PARTICULARS |
Quarter ended |
Half year ended |
||
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
1 |
Segment Revenue |
|
|
|
|
|
(Net sales/Income from operations) |
|
|
|
|
a) |
Zinc, Lead and Silver |
|
|
|
|
|
(i) Zinc and Lead |
22967.700 |
22532.300 |
45500.000 |
|
|
(ii) Silver Metal |
4489.900 |
3882.000 |
8371.900 |
|
|
Total |
27457.600 |
26414.300 |
53871.900 |
|
b) |
Wind Energy |
765.400 |
712.400 |
1477.800 |
|
|
Net sales/Income from operations |
28223.000 |
27126.700 |
55349.700 |
|
2 |
Segment Result |
|
|
|
|
a) |
(i) Zinc and Lead |
8591.600 |
8627.100 |
17218.700 |
|
|
(ii) Silver Metal |
4109.200 |
3510.000 |
7619.200 |
|
|
Total |
12700.800 |
12137.100 |
24837.900 |
|
b) |
Wind Energy |
427.900 |
389.600 |
817.500 |
|
|
Total |
13128.700 |
12526.700 |
25655.400 |
|
|
Less: Interest |
(20.900) |
128.800 |
107.900 |
|
|
Less: Exceptional Items (VRS in respect of zinc, lead and silver) |
- |
- |
- |
|
|
Add: Other unallocable income net of unallocable expenditure |
4954.200 |
5768.100 |
10722.300 |
|
|
Profit before Tax |
18103.800 |
18166.000 |
36269.800 |
|
3 |
Capital Employed |
|
|
|
|
|
(Segment Assets - Segment Liabilities) |
|
|
|
|
a) |
Zinc, Lead and Silver |
98044.200 |
87226.300 |
98044.200 |
|
b) |
Wind Energy |
11327.400 |
11260.300 |
11327.400 |
|
c) |
Unallocated |
182654.900 |
186136.900 |
182654.900 |
|
|
Total |
292026.500 |
284623.500 |
292026.500 |
UNAUDITED STATEMENT
OF ASSETS AND LIABILITIES AS AT 30th SEPTEMBER, 2012
(Rs. In Millions)
|
PARTICULARS |
As at 30.09.2012 |
|
EQUITY AND
LIABILITIES |
|
|
Shareholders funds |
|
|
Share capital |
8450.600 |
|
Reserves and surplus |
283575.900 |
|
Sub total - Shareholders funds |
292026.500 |
|
Non current liabilities |
|
|
Deferred tax liabilities (net) |
11556.300 |
|
Other long term liabilities |
305.300 |
|
Sub total - Non current liabilities |
11861.600 |
|
Current liabilities |
|
|
Short term borrowings |
3.900 |
|
Trade payables |
5903.500 |
|
Other current liabilities |
5438.000 |
|
Short term provisions |
8180.800 |
|
Sub total - Current liabilities |
19526.200 |
|
|
|
|
Total Equity and Liabilities |
323414.300 |
|
ASSETS |
|
|
Non current assets |
|
|
Fixed assets |
91486.900 |
|
Non current investments |
27.000 |
|
Long term loans and advances |
10945.300 |
|
Other non current assets |
3071.600 |
|
Sub total - Non current assets |
105530.800 |
|
Current assets |
|
|
Current investments |
118403.300 |
|
Inventories |
17032.100 |
|
Trade receivables |
5910.700 |
|
Cash and cash equivalents |
72952.900 |
|
Short term loans and advances |
1416.800 |
|
Other current assets |
2167.700 |
|
Sub total - Current assets |
217883.500 |
|
Total Assets |
323414.300 |
Notes:
1. The above results for the quarter and half year ended 30lh September 2012 and statement of assets and liabilities as on 30th September 2012 have been reviewed by Audit Committee and approved by the Board of Directors at their meeting held on 18th October 2012. The auditors have carried out "Limited Review" of the above results.
2. The Company has adopted Accounting Standard 30 - Financial Instruments: Recognition and Measurement effective 1st April, 2007 along with consequential revisions to other Accounting Standards.
3. Intangible assets represents Rs.984.100 Millions (2012 : Rs.984.100 Millions) being long term investment in equity shares of Andhra Pradesh Gas Power Corporation Limited, Hyderabad, which entitles the company to draw power in Andhra Pradesh for its Vishakapatnam unit. This has been amortised and resulted in an additional amortisation charge of Rs. 23.400 Millions for the half year ended 30in September 2012 (corresponding previous half year Rs. 23.400 Millions) and the net profit after tax for the half year ended 30th September 2012 being lower by Rs. 15.800 Millions (corresponding previous half year Rs. 15.800 Millions). This treatment, being in preference to the requirements of Accounting Standards, has been reported by the auditors.
4. The Board declared an interim dividend @80 % i.e. Rs. 1.60 per equity share of Rs. 2/- each. The record date for the payment of interim dividend is 26th October 2012.
5. Previous Period/Year figures have been re-grouped/re-arranged wherever necessary.
FIXED ASSETS
Tangible Assets
· Land Freehold Land
· Land Leasehold Land
· Buildings
· Railway Siding
· Mine Development Expenses
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office Equipment
Intangible Assets
·
Computer Software
·
Investment in Shares
AS PER WEBSITE DETAILS:
Press Release
GOVT MULLING SELLING
RESIDUAL STAKE IN HIND ZINC, BALCO
The government is considering the option of selling its residual stake in Hindustan Zinc and Balco-- two erstwhile PSUs that were sold to mining giant Vedanta Resources during 2001-2003.
The move is aimed at meeting the Rs 300000.000 Millions disinvestment target for the current fiscal, though a final call will be taken by the Cabinet, official sources said
They added that the Mines Ministry, which had moved a note last month for sale of remaining government stakes (residual stake) in the Hindustan Zinc Limited (HZL) and Bharat Aluminium Company (Balco), has suggested two-three options for conducting a proper valuation of the two erstwhile PSUs.
After receiving comments from the Finance Ministry, the Mines Ministry may take the proposal to the Cabinet for its consideration, they further said.
At present, the government holds 29.5 per cent stake in HZL and 49 per cent stake in Balco.
In January, Anil Agarwal-led Vedanta Resources had offered Rs.172750.000 Millions for government's remaining stakes in HZL and Balco. This amounts to over 57 per cent of disinvestment target of Rs.300000.000 Millions.
Finance Minister P Chidambaram had said last week that selling residual stakes in the two erstwhile PSUs are one of the options before the government and will be used only when existing options -- divesting equity in public sectors firms -- are exhausted.
"Apart from the seven-eight companies we have lined up, there is also residual stake in couple of companies, which were strategically sold earlier, actually privatised. Government is no longer the majority owner. So, that's there... But we will resort to those options only when we exhaust the companies that have been lined up for disinvestment," Chidambaram had said.
Vedanta Resources, whose Board has the power to sweeten the offers by up to 25 per cent in the two firms in rupee terms (up to Rs.216350.000 Millions), had said last month that it is still waiting to get a response from the government on its January offer.
At present, Hindustan Zinc is the richest profit-making subsidiary of Vedanta with a cash and cash equivalent of Rs.191360.000 Millions as on September, 2012. The company had reported a net profit of Rs.55260.000 Millions and net revenues of Rs.114050.000 Millions in 2011-12.
On the other hand, Balco is an unlisted subsidiary of Vedanta and its valuation has been a bone contention between the mining firm and the government.
Last week, the government raised Rs.8080.000 Millions by selling 5.58 per cent stake in Hindustan Copper, which was the first stake sale in a PSU in the current financial year. The government may pare some of its stakes in few more companies like NMDC before 2012-end.
RIICO AND HINDUSTAN ZINC SIGN MOU FOR RAILWAY PROJECT
Jaipur, 14 May: Rajasthan State
Industrial Development and Investment Corporation Limited (RIICO) and Hindustan
Zinc Limited (HZL) signed a Memorandum of Understanding (MOU) for commissioning
a railway project near Bhilwara. The MOU was signed by RIICO’s Managing
Director, Mr. Rajendra Bhanawat and General Manager, Mining, HZL, Mr. G.L.
Phiroda. RIICO will acquire around 25 hectares of land for the project, as per
the MOU.
Presently, HZL has been transporting ore lead
and zinc concentrates to company smelters situated at Chanderiya (Chittorgarh),
Debari (Udaipur) and Dariba Smelter Complex (Rajsamand) by road. It now
proposes to switch to rail transportation for which a railway siding is
proposed to be laid between Rupaheli Station (between Gulabpura and Bhilwara)
to Rampura Agucha Mines of HZL. The length of proposed siding is 13 kms.
After the switch in transportation, there will
be reduction in pollution, disposal of accumulated waste rock in mining lease
area and ore transportation from other mines will become easier.
HINDUSTAN ZINC LIMITED RESULTS FOR THE SECOND QUARTER AND HALF YEAR
ENDED 30 SEPTEMBER 2012
Net Profit up 15%; Interim dividend increased to 80%
Mumbai: Hindustan Zinc Limited
(“HZL” or the “Company”) today announced
results for the second quarter
(“Q2”) and Half Year ended 30 September 2012.
Q2 HIGHLIGHTS
Operational
· Mined metal production in line with the mine plan
· Refined Lead production up by 60%
· Refined Silver production up by 86%
· Greenfield Kayar mine strikes developmental ore, ahead of schedule
Financial Performance
· Net Revenue up 9% to Rs.28220.000 Millions
· Net Profit up 15% to Rs. 15400.000 Millions
Interim Dividend
·
Interim dividend of Rs
1.60 per share
“Our results show our ability to deliver
consistent performance from our best-in-class assets. We will continue our
growth story in future and maintain our cost leadership to deliver industry
leading performance”, said Mr. Agnivesh Agarwal, Chairman of Hindustan Zinc.
Operational Performance
Mined metal production during H1 is in line
with our mine plan. The production is expected to progressively increase during
Q3 and Q4, such that H2 should more than make up the H1 shortfall. We expect the mined metal production for the
full year to be slightly higher than the previous year.
Mined metal production was 190kt in Q2 and
377kt in H1, as compared with 210kt and 398kt in the corresponding prior
periods. In line with the mined metal production, integrated production of
refined zinc was 153kt in Q2 and 310kt in H1. Integrated production of refined
lead was 24kt in Q2 and 53kt in H1.
Integrated refined Silver production was 80
tonnes in Q2 and 160 tonnes in H1, up 63% and 66% respectively, driven by the
ramp-up of SK mine and Dariba lead smelter.
Financial Performance
Revenues were Rs. 28220.000 Millions in Q2 and
Rs. 55350.000 Millions in H1, up 9% and 2% respectively compared to the
corresponding prior periods. Net profit was up 15% in Q2 at Rs. 15400.000
Millions and up 10% in H1 at Rs. 31210.000 Millions, compared to the
corresponding prior period. During Q2 and H1 of FY2013, the positive impact of
higher Lead-Silver volumes and Rupee depreciation was offset by lower zinc volumes, lower prices of Zinc, Lead and
Silver.The Zinc COP, excluding royalty, during the quarter was Rs.0.047 Million per MT ($844),
compared to Rs 0.039 Million ($847) in the corresponding prior quarter. The increase was primarily on
account of higher excavation cost and Rupee depreciation.
Interim Dividend
HZL’s Board of Directors has recommended an
interim dividend of 80% i.e. Rs. 1.60
per share on equity share of Rs 2.00 each, as compared to an interim dividend
of Rs 1.50 per share last year. The record date for the payment of interim
dividend is 26th October 2012.
Expansion Projects
At the greenfield Kayar mine, a milestone of
development ore production was achieved towards the end of the quarter. Both Rampura
Agucha and Kayar underground mines are progressing well and will start
commercial production in FY2014.Liquidity and investment as at 30 September
2012, the Company had cash and cash equivalents of Rs. 191360.000 Millions.
This includes Rs. 101770.000 Millions in debt mutual funds, Rs. 16630.000 in
bonds and Rs. 72750.000 Millions in fixed deposits with banks. The Company
follows a conservative investment policy and invests in high quality debt
instruments. Our investment portfolio is
rated “very good” by CRISIL – the highest rating.
About Hindustan Zinc
HZL is one of the world’s largest integrated
producers of Zinc-Lead and a leading producer of Silver globally. Ithas a metal
production capacity of over one million tonnes per annum with its key Lead-Zinc
mines in Rampura Agucha and Sindesar Khurd; and modern smelting complexes in
Chanderiya and Dariba. HZL is focused on growth and long-term term
sustainability on the back of its high-quality assets, long mine life of over
25 years and low cost base. The Company is a subsidiary of the NYSE listed,
Sterlite Industries (India) Limited (NYSE: SLT) and London listed FTSE 100
diversified metals and mining major, Vedanta Resources plc.
HINDUSTAN ZINC
LIMITED SEES 10% RISE IN DEMAND
July 23, 2012, 01.27AM
IST
KOLKATA: Hindustan Zinc Limited (HZL), the world's largest integrated producer of zinc, expects domestic demand for the metal to grow at 8-10% per annum, nearly twice the rate at which global demand is tipped to grow.
HZL, which has about 85% share of the market, expects demand for the metal used to protect steel from rusting to spurt on increased economic activity.
"We expect global demand of zinc to increase at a rate of 3-4% per annum. The Indian metal demand is expected to grow more, at 8-10% per annum. India would continue to consume more metal because per capita consumption of zinc in the country is amongst the lowest in the world," Akhilesh Joshi, CEO of Hindustan Zinc, said.
In step, by the second half of FY13, HZL has decided to expand capacity at Rampur Agucha, one of the largest zinc mines globally.
Production in the first half of FY13 is likely to be marginally lower than the previous corresponding year. However, HZL plans to more than make up for the lower output between October-March 2012-13. This is because the company expects developmental ore from Rampur Agucha underground mine and Kayar mine in the second half of FY13.
Commercial production from both these mines will start next year. However, HZL's cost of zinc production, excluding royalty, went up during Q1 of FY13. At Rs 0.046 Million per tonne ($844), it was higher compared to Rs 0.039 Million ($874) reported in Q1 of FY12 given higher prices of consumables due to rupee depreciation and lower metal production.
Significantly, in addition to zinc, its by-product, silver is set to emerge as a dominant segment in HZL's overall revenues with the company readying plans to achieve 500-tonne mark in silver output. "HZL's cost of production has been on the rise due to increase in royalty and higher power cost. This is likely to continue. However, the impact of higher production cost is likely to be offset by a jump in revenue due to a rise in sale of silver," Tarang Bhanushali, research analyst at India Infoline, said in a June 2012 research report on the company.
Silver production is poised to almost double due to volume ramp up at the mine and commissioning of silver refinery at Pantnagar in Uttarakhand.
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 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.54.88 |
|
|
1 |
Rs.87.99 |
|
Euro |
1 |
Rs.72.83 |
INFORMATION DETAILS
|
Report Prepared
by : |
NID |
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 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--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.