“Stellar annual performance: Mined metal production crosses one million tonne mark with Best-ever refined metal production; PAT grows by 21% to a record high of INR 9,629 Cr.”
Highlights for the Year
- Mined metal production: 1,017 kt
- Refined metal production: 967 kt
- Saleable silver production: 647 MT
- Zinc COP: US$ 1,122 per MT
Udaipur, April 22, 2022: Hindustan Zinc Limited, the leading global integrated producer of zinc, lead and silver, reported its results for the fourth quarter and full year ended March 31, 2022.
Commenting on the performance, Mr Arun Misra, CEO, said: “Hindustan Zinc delivered best-ever annual mined metal production & touched the record one million tonne mark this year. Our production of refined metal was also highest ever. With the exit run-rate for refined metal at 1.2mtpa, we are fully geared for another stellar performance this year. Our focus is to produce more and more of world-class value-added zinc alloy products with the use of latest technology & equipment. Hindustan Zinc is committed to decarbonize its mining operations and deliver on its ESG road map to achieve net zero by 2050.”
Mr Sandeep Modi, Interim CFO, said: “Hindustan Zinc delivered record breaking performance with highest-ever annual Revenue, EBITDA & PAT. With stringent cost & cash conversion discipline, we continue to deliver industry leading returns, while investing towards a sustainable business. With ongoing asset optimization & integration initiatives as well as proactive measures towards combating input commodity inflation, we will continue to produce essential resources for the world & thereby create long lasting value for all stakeholders.”
Financial Summary Standalone
INR. Cr./as stated
| Particulars | Q4 | Q3 | FY | |||||
| 2022 | 2021 | Change | 2022 | Change | 2022 | 2021 | Change | |
| Sales1 | ||||||||
| Zinc | 6,414 | 4,241 | 51% | 5,667 | 13% | 20,299 | 13,961 | 45% |
| Lead | 940 | 999 | -6% | 900 | 4% | 3,550 | 3,281 | 8% |
| Silver | 1,036 | 1,350 | -23% | 1,081 | -4% | 4,206 | 4,382 | -4% |
| Others | 407 | 357 | 14% | 342 | 18% | 1,385 | 1,005 | 38% |
| Total | 8,797 | 6,947 | 27% | 7,990 | 10% | 29,440 | 22,629 | 30% |
| EBITDA | 5,007 | 3,875 | 29% | 4,392 | 14% | 16,289 | 11,739 | 39% |
| Profit After Taxes | 2,929 | 2,481 | 18% | 2,701 | 8% | 9,630 | 7,980 | 21% |
| Earnings per Share | 6.93 | 5.87 | 18% | 6.39 | 8% | 22.79 | 18.89 | 21% |
| (INR, not annualised) | ||||||||
| Mined Metal Production (‘000 MT) | 295 | 288 | 3% | 252 | 17% | 1,017 | 972 | 5% |
| Refined Metal Production (‘000 MT) | ||||||||
| Total Refined Metal | ||||||||
| Zinc | 211 | 195 | 8% | 214 | -1% | 776 | 715 | 8% |
| Saleable Lead | 49 | 61 | -19% | 47 | 5% | 191 | 214 | -11% |
| Zinc & Lead | 260 | 256 | 2% | 261 | 0% | 967 | 930 | 4% |
| Saleable Silver2 (in MT) | 162 | 203 | -20% | 173 | -6% | 647 | 706 | -8% |
| Wind Power (in million units) | 66 | 65 | 2% | 59 | 12% | 414 | 351 | 18% |
| Refined Metal Sales (kt) | ||||||||
| Zinc (kt) | 214 | 198 | 8% | 212 | 1% | 777 | 724 | 7% |
| Lead (kt) | 49 | 62 | -20% | 47 | 5% | 192 | 216 | -11% |
| Silver (MT) | 162 | 203 | -20% | 173 | -6% | 647 | 735 | -12% |
| Zinc CoP without Royalty (INR/MT) | 85,378 | 68,969 | 24% | 85,969 | -1% | 83,511 | 70,681 | 18% |
| Zinc CoP without Royalty ($/MT) | 1,136 | 945 | 20% | 1,148 | -1% | 1,122 | 954 | 18% |
| Zinc LME ($/MT) | 3,754 | 2,750 | 37% | 3,364 | 12% | 3,257 | 2,422 | 34% |
| Lead LME ($/MT) | 2,335 | 2,018 | 16% | 2,331 | 0% | 2,285 | 1,868 | 22% |
| Silver LBMA ($/oz.) | 24.0 | 26.3 | -9% | 23.3 | 3% | 24.6 | 22.9 | 7% |
| USD-INR (average) | 75.17 | 72.95 | 3% | 74.9 | 0% | 74.46 | 74.11 | 0% |
- Including other operating income
- Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes.
Financial Summary Consolidated
INR. Cr./as stated
| Particulars | Q4 | Q3 | FY | |||||
| 2022 | 2021 | Change | 2022 | Change | 2022 | 2021 | Change | |
| Sales1 | ||||||||
| Zinc | 6,414 | 4,241 | 51% | 5,667 | 13% | 20,299 | 13,961 | 45% |
| Lead | 940 | 999 | -6% | 900 | 4% | 3,550 | 3,281 | 8% |
| Silver | 1,036 | 1,350 | -23% | 1,081 | -4% | 4,206 | 4,382 | -4% |
| Others | 407 | 357 | 14% | 342 | 18% | 1,385 | 1,005 | 38% |
| Total | 8,797 | 6,947 | 27% | 7,990 | 10% | 29,440 | 22,629 | 30% |
| EBITDA | 5,007 | 3,875 | 29% | 4,392 | 14% | 16,289 | 11,739 | 39% |
| Profit After Taxes | 2,928 | 2,481 | 18% | 2,701 | 8% | 9,629 | 7,980 | 21% |
| Earnings per Share | 6.93 | 5.87 | 18% | 6.39 | 8% | 22.79 | 18.89 | 21% |
| (INR, not annualised) | ||||||||
| Mined Metal Production (‘000 MT) | 295 | 288 | 3% | 252 | 17% | 1,017 | 972 | 5% |
| Refined Metal Production (‘000 MT) | ||||||||
| Total Refined Metal | ||||||||
| Zinc | 211 | 195 | 8% | 214 | -1% | 776 | 715 | 8% |
| Saleable Lead | 49 | 61 | -19% | 47 | 5% | 191 | 214 | -11% |
| Zinc & Lead | 260 | 256 | 2% | 261 | 0% | 967 | 930 | 4% |
| Saleable Silver2 (in MT) | 162 | 203 | -20% | 173 | -6% | 647 | 706 | -8% |
| Wind Power (in million units) | 66 | 65 | 2% | 59 | 12% | 414 | 351 | 18% |
| Refined Metal Sales (kt) | ||||||||
| Zinc (kt) | 214 | 198 | 8% | 212 | 1% | 777 | 724 | 7% |
| Lead (kt) | 49 | 62 | -20% | 47 | 5% | 192 | 216 | -11% |
| Silver (MT) | 162 | 203 | -20% | 173 | -6% | 647 | 735 | -12% |
| Zinc CoP without Royalty (INR/MT) | 85,378 | 68,969 | 24% | 85,969 | -1% | 83,511 | 70,681 | 18% |
| Zinc CoP without Royalty ($/MT) | 1,136 | 945 | 20% | 1,148 | -1% | 1,122 | 954 | 18% |
| Zinc LME ($/MT) | 3,754 | 2,750 | 37% | 3,364 | 12% | 3,257 | 2,422 | 34% |
| Lead LME ($/MT) | 2,335 | 2,018 | 16% | 2,331 | 0% | 2,285 | 1,868 | 22% |
| Silver LBMA ($/oz.) | 24.0 | 26.3 | -9% | 23.3 | 3% | 24.6 | 22.9 | 7% |
| USD-INR (average) | 75.17 | 72.95 | 3% | 74.9 | 0% | 74.46 | 74.11 | 0% |
- Including other operating income
- Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes.
Operational Performance
Mined metal production for the quarter was at 295 kt, up 2.6% y-o-y on account of higher ore production at Rajpura Dariba, Sindesar Khurd & Rampura Agucha mines. Sequentially mined metal production grew by 17.2% on account of higher ore production from Rajpura Dariba, Rampura Agucha, Sindesar Khurd & Zawar mines supported by better mining grades.
For the full year, we had our best ever mined metal production of 1,017 kt, up 4.6% Y-o-Y. The one million mark was crossed for the first time owing to higher ore production across all our locations.
Integrated metal production for the quarter was 260 kt, up 1.6% y-o-y, while remaining almost flat sequentially. Quarterly production was supported by better plant & mined metal availability and improved operating parameters. Integrated zinc production was 211 kt, up 8.1% y-o-y and was 1.3% lower sequentially. Integrated lead production for the quarter was 49kt, up 4.7% sequentially but was down 19.3% y-o-y as Pyro plant at CLZS was run in the Zinc-Lead mode in place of Lead-only mode.
For the full year, overall refined metal production was 967 kt up 4.0% y-o-y on account of better plant & concentrate availability.
Integrated silver production was 162 MT, down 20.2% y-o-y & 6.2% sequentially in line with lead metal production. For the full year, silver production was 8.3% lower y-o-y to 647 MT in line with the lower lead metal production and reduction of silver WIP.
Financial Performance
Revenue from operations during the quarter was INR 8,797 Cr., an increase of 26.6% y-o-y, led by higher zinc volumes & zinc LME prices as well as favourable exchange rates while partly offset by lower lead & silver volumes. Over the year, zinc & lead LME prices were up 36.5% & 15.7% respectively.
Sequentially revenue increased 10.1%, primarily due to higher zinc LME & metal volumes and partially offset by lower silver volumes. Sequentially zinc and lead sales volumes increased 0.9% & 5.1% respectively, while silver sales volumes were 6.3% lower in line with the production.
For the full year, revenue was INR 29,440 Cr., an increase 30.1% y-o-y, led by higher zinc volumes & LME prices while being partially offset by lower lead and silver volumes.
Zinc cost of production before royalty (COP) was US$ 1,136 (Rs. 85,378) per MT for the quarter, higher by 20.2% y-o-y and lower by 1.0% sequentially. The COP for the full year was US$ 1,122 (INR 83,511) per MT, up 17.6% y-o-y. The COP was affected largely on account of higher coal prices & input commodity inflation, partially offset by higher volume, better Sulphuric Acid realizations & improved recoveries.
EBITDA for the quarter was INR 5,007 Cr., up 29.2% y-o-y and 14.0% sequentially. EBITDA for the full year was at INR 16,289 Cr., up 38.8% y-o-y. Rise was primarily due to higher zinc & lead LME prices, higher premiums as well as higher silver prices.
Net profit for the quarter was at INR 2,928 Cr., up 18.0% y-o-y and 8.4% sequentially. Increase was mainly driven by higher volumes and higher metal prices. Net Profit for the full year was INR 9,629 Cr., up 20.7% y-o-y.
During the quarter, the Company sold zinc forward equivalent to approximate 15% of FY23 projected zinc production volumes.
Reserves & Resources (R&R)
Total Ore Reserves stand at 161.2 million tonnes (net of depletion of FY22 production of 16.34 million tonnes) at the end of FY22 (150.3 million tonnes at the end of FY21) due to heightened focus on resource to reserve conversion during the year. Exclusive Mineral Resource totalled 286.73 million tonnes. Total R&R was at 447.9 million tonnes.
Total contained metal in Ore Reserves is 9.57 million tonnes of zinc, 2.45 million tonnes of lead and 298.4 million ounces of silver. The Mineral Resource contains 13.18 million tonnes of zinc, 5.86 million tonnes of lead & 576.3 million ounces of silver. At current mining rates, the R&R underpins metal production of more than 25 years.
Projects Update
- Consent to Establish (CTE) has been obtained for Hindustan Zinc Alloys Private Limited (HZAPL) to establish 30 kt plant. Orders are in the advanced stages of issuance.
- Rajpura Dariba Mill revamping for 1.1 million tonnes per annum is underway. Construction is ongoing and we expect commissioning to complete by Q3 FY23.
- For the Fumer commissioning, visa process is in advanced stages for the technical experts. The team is likely to travel by the end of April’22 and commissioning is expected to be completed by end of Q1 FY23.
- At Doswada Public Hearing could not be held due to local issues & date for next Public Hearing is awaited.
ESG update
- HZL has put into operation it’s first batch of passenger Electric Vehicles (EVs) for employees. The recent additions to the EV fleet are electric scooters for security staff, passenger EVs at locations, and specialized smart underground service EV for mines (launched 1st underground EV at Zawar mines).
- Board approval is received to undertake long-term captive renewable power development plan up to a capacity of 200 MW. The project will be built under the Group captive norms and on a Build Own Operate basis. We expect delivery of power from 2025.
- Initiated Task Force on Climate-Related Financial Disclosures (TCFD) Qualitative and Quantitative study across HZL to identify the climate related risks and opportunities and the financial implications of the same on our business.
- Signed a MoU with CDP – Science Based Incubator Programme for setting the targets in line with SBTi (The Science Based Targets initiative) requirements for our commitment to reduce the greenhouse gases (GHG) emission to Zero by 2050.
- No-Objection Certificate (NOC) granted by Central Ground Water Authority (CGWA) for Zawar group of Mines and Rajpura Dariba mine expansion.
- Hindustan Zinc received ISO 37301:2021 certification for compliance management.
- HZL won its 1st Bronze medal and for the 5th year in a row placed in the Sustainability Yearbook 2022.
- HZL received CII-ITC Sustainability Awards 2021 for outstanding accomplishment in Corporate Excellence.
- HZL ranked in top 100 global companies by Global Sustainability Magazine.
- Kayad Mines received National Safety Award by Ministry of Labour and Employment.
Contribution to the exchequer
During the year, the Company contributed INR 15,676 Cr. to the Government treasury through royalties and taxes, which is 53% of total operating revenue.
Liquidity and Investment
As at end Mar’22, the Company’s gross investments and cash & cash equivalents were INR 20,789 Cr. as compared to INR 17,040 Cr. as at end Dec’21 and INR 22,308 Cr. as at end Mar’21.
During the year, a total sum of INR 7,606 Cr. was paid in form of dividends & total debt repayment amounted to INR 4,355 Cr.
The Company’s net investments as at end Mar’22, was INR 17,966 Cr. as compared to INR 14,227 Cr. as at end Dec’21 and INR 15,130 Cr. as at end Mar’21. The same was invested in high quality debt instruments.
Outlook for FY23
Both mined metal and refined metal production in FY23 is expected to be higher than last year. Mined metal is expected to be between 1,050-1,075 kt & Refined metal production in the range of 1,000-1,025 kt.
FY23 saleable silver production is projected to be between 700-725 MT.
Zinc cost of production in FY23 is expected to be in between US$ 1,125-1,175 per MT. The project capex for the year is expected to be in the range of US$ 125-150 million.
Earnings Call on Friday, April 22, 2022 at 16:00 hours (IST)
The Company will hold an earnings conference call on Friday, April 22, 2022 at 16:00 hours IST, where senior management will discuss the Company’s results and performance.
Conference Dial-In Information:
Express Join via internet registration
Please dial the below number at least 5-10 minutes prior to the conference schedule.
Universal Access +91 22 6280 1340, +91 22 7115 8241
Playback Dial-In Numbers +91 22 71945757, +91 22 66635757
April 22 – April 29, 2022 Playback Code: 87944
For further information, please contact:
| Shweta Arora
Head – Investor Relations |
Dipti Agrawal
Head – Corporate Communications |
| +91 9538453097 | +91 7738485450 |
About Hindustan Zinc Limited
Hindustan Zinc Limited (BSE: 500188 and NSE: HINDZINC), a Vedanta Group company, is the world’s largest integrated zinc producer and the third-largest silver producer. The company supplies to more than 40 countries and holds a market share of about 75% of the primary zinc market in India. Hindustan Zinc has been recognized as the world’s most sustainable company in the metals and mining category for the second consecutive year by the S&P Global Corporate Sustainability Assessment 2024, reflecting its operational excellence, innovation, and leading ESG practices. The company also launched EcoZen, Asia’s first low carbon ‘green’ zinc brand. Produced using renewable energy, EcoZen has a carbon footprint of less than 1 tonne of carbon equivalent per tonne of zinc produced, about 75% lower than the global average. Hindustan Zinc is also a certified 2.41 times Water-Positive company and is committed to achieving Net Zero emissions by 2050 or sooner. Transforming the lives of 1.9 million people through its focused social welfare initiatives, Hindustan Zinc is among the Top 10 CSR companies in India. As an energy transition metals company, Hindustan Zinc is pivotal in providing critical metals essential for a sustainable future.
LLearn more about Hindustan Zinc on – https://www.hzlindia.com/home/ and follow us on LinkedIn, Twitter, Facebook, and Instagram for more updates.
