21st July 2023

Earnings Press Release for first quarter ended 30th June, 2023

• Including other operating income
• Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes.

Financial Summary Consolidated

INR. Crore or as stated

• Including other operating income
• Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes.

Operational Performance

Highest-ever first quarter mined metal production at 257 kt, an increase of 2.1% y-o-y on account of higher ore production largely at Rampura Agucha & Kayad mines supported by improved mined metal grades and better mill recovery. In line with mine preparation activities being carried out every year in first quarter, MIC production was 14.6% lower sequentially.

Refined metal production was 260 kt for the quarter, flat y-o-y and down 4% sequentially in line with plant availability. Integrated zinc production was 209 kt, up 1.4% y-o-y and down 2.9% sequentially. Integrated lead production for the quarter was down 5.7% y-o-y and 6.3% sequentially at 51 kt, in line with plant availability.

Saleable silver production for the quarter was 179 MT, up 1.2% y-o-y and down 1.6% sequentially in line with lead metal production and higher WIP depletion.

Financial Performance

Revenue from operations during the quarter was INR 7,282 Crore, down 22.4% y-o-y on account of lower zinc & lead LME, lower lead volumes and differential strategic hedging impact partly offset by higher zinc and silver volumes, improved silver prices and favourable exchange rates.

Sequentially, revenue was down by 14.4% on account of lower zinc LME, lower metal & silver volumes partly offset by improved silver prices.

Zinc cost of production before royalty (COP) for the quarter was US$1,194 (INR 98,103) per MT, lower by 5.6% (0.7% higher in INR terms) y-o-y and lower by 1.7% (1.7% lower in INR terms) sequentially. Cost improvement is majorly on account of softened coal and input commodity prices, better domestic coal (linkage) availability, further supported by better grades and operational efficiencies year on year.

EBITDA for the quarter was INR 3,359 Crore, down 36.4% y-o-y and 20.2% sequentially, mainly on account of lower zinc & lead LME partly offset by lower costs and better silver prices.

Net profit for the quarter was at INR 1,964 Crore, down 36.5% y-o-y and 24.0% sequentially, primarily on account of lower EBITDA partly offset by lower tax expense.

Projects Update

• For Hindustan Zinc Alloys Private Limited (HZAPL), mechanical installations and cold commissioning of main Alloy plant have been completed and hot commissioning is planned in Q2 FY24
• For Rajpura Dariba Mill, installation work completed and cold commissioning and plant hookup with existing facilities ongoing. Production targeted by mid Q2 FY24
• For the Fumer commissioning, HZL team visited China for training on commissioning & online support. Due to continued visa restrictions, the commissioning will be done through online support and inhouse experts and is expected to be completed by early Q2 FY24
• For the new Roaster at Debari, all orders are placed and EPC works will start in Q2 FY24
• For Hindustan Zinc Fertilisers Private Limited (HZFPL), major process package order has been finalized, and the partner has been locked in. Remaining orders are targeted by Q2 FY24 

ESG Update

• Certified as Great Place to Work for the fifth consecutive year
• Won the prestigious PeopleFirst HR Excellence Awards in the categories of “Leading Practices in Talent Management” & “Leading Practices in Employee Relations (Industrial Relations)”
• HZL became the piloting member for Science Based Target for Nature target setting, the only one in India and only metal and mining company amongst the member companies.
• Submitted Taskforce on Nature-related Financial Disclosure (TNFD) piloting for LEAP approach in collaboration with ICMM
• India’s 1^st ever all women mining rescue team trained at Mines Rescue Station, Nagpur
• Zawar group of mines won Platinum Award at Apex India Green Leaf Awards 2022
• Zawar Mines won CII Best Practices Award for its dry tailing plant
• On World Environment Day, ‘Coffee Table Book’ on ‘Preserving the Beauty of Biodiversity in Nature’ was launched in the presence of Rajasthan State Pollution Control Board, Chairperson at Jaipur
• Two zinc football players selected in Rajasthan state team
• Awarded with two titles in ‘India Risk Management Award 2023’ by CNBC-ICICI Lombard including special jury citation for ‘Risk Management in Metal & Mining Industry’ and ‘Master of Risks in Environmental Social Governance’ Category

Liquidity and Investment

As on June 30, 2023, the Company’s consolidated gross investments and cash & cash equivalents were INR 9,709 Crore as compared to INR 10,061 Crore at the end of Mar’23 which was invested in high quality debt instruments. Total borrowings outstanding as on Jun’23 was INR 9,330 Crore. 

Outlook for FY24

Both mined metal and refined metal production in FY24 is expected to be higher than last year. Mined metal is expected to be between 1,075-1,100 kt & refined metal production in the range of 1,050-1,075 kt.

FY24 saleable silver production is projected to be between 725-750 MT.

Zinc cost of production in FY24 is expected to be in between US$ 1,125-1,175 per MT. Project capex for the year is expected to be in the range of US$ 175-200 million.

Earnings Call on Friday, July 21, 2023, at 1600 hours (IST)

The Company will hold an earnings conference call on Friday, July 21, 2023, at 1600 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 7194 5757

July 21 – July 28, 2023                                     Playback Code: 43190

For further information, please contact:

Jhalak Rastogi Associate Director – Investor Relations jhalak.rastogi2@vedanta.co.in +91 8287262850	Maitreyee Sankhla Interim Head – Corporate Communications maitreyee.sankhla@vedanta.co.in +91 7742161333
Siddharth George Associate Manager – Investor Relations hzl.ir@vedanta.co.in

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.

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