Press release from Business Wire India
Source: Business Wire
Saturday, January 23, 2010 12:01 PM IST (06:31 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Mining companies, Stock exchanges
(BW)(HINDUSTAN-ZINC/STERLITE)(SLT)Hindustan Zinc Limited Results for the Third Quarter and Nine Months Ended 31 December 2009
Mumbai, Maharashtra, India, Saturday, January 23, 2010 — (Business Wire India) —
Hindustan Zinc Limited:
Highlights for the quarter
- Strong operating performance
- Highest ever Zinc and Lead mined metal production at 199,729 tonnes
- Highest ever Silver production at 35,633 kilograms
- Robust financial performance
- Net sales up 115% and PAT up 211% compared with corresponding prior quarter
- Expansion projects on track to make HZL the world’s largest integrated zinc – lead producer at 10.64 lakh per annum
- HZL awarded the “Ramakrishna Bajaj National Quality Award 2009” and “CII National Award for Excellence in water Management 2009”
Hindustan Zinc Limited (“HZL” or the “Company”) today announced its results for the third quarter (“Q3”) and nine months (“nine months period”) ended 31 December 2009.
Unaudited Financial Summary
(in Rs crore, except as stated)
Nine months ended
|Net Sales/Income from operations||2,217||1,031||115||%||5,519||4,418||25||%|
|Profit before depreciation & tax (PBDT)||1,510||537||181||%||3,693||2,873||29||%|
|Profit After Taxes||1,149||369||211||%||2,802||2,176||29||%|
|Earnings Per Share (Rs.)||27.18||8.73||66.32||51.50|
|Production – Mined Metal (Tonnes)|
|Zinc and Lead||199,729||191,684||4||%||575,088||537,592||7||%|
|Production – Saleable Metal (Tonnes)|
|Silver (in kgs)||35,633||24,722||44||%||95,484||69,879||37||%|
During Q3, the company achieved highest ever zinc and lead mined metal production of 199,729 tonnes. During the same period, refined zinc and lead metal production was 167,000 tonnes.
Sales during the quarter were augmented by sales of 40,972 dry metric tonnes of surplus zinc concentrate.
During Q3, the company recorded its highest ever saleable silver production at 35,633 kilograms, an increase of 44% compared with the corresponding prior quarter. The increase in production was primarily on account of higher silver content in the mined ore and better recoveries.
Revenues and net profit for Q3 were Rs 2,217 crore and Rs 1,149 crore, compared with Rs. 1,031 crore and Rs. 369 crore in the corresponding prior quarter. The positive impact of higher LME, volume and operational efficiencies on net profit was partially offset by the substantial decline in the by-product credit realization and impact of long term settlement of wage agreement effective from 1 July 2007, with the HZL union.
The construction work for the 210,000 tonnes of zinc and 100,000 tonnes of lead smelter at Rajpura Dariba with 160 MW associated captive power plant along with Rampura Agucha Mine expansion is progressing well and is on schedule for completion by mid-2010, as announced earlier. Work at the other mining projects at Sindesar Khurd and kayar are also progressing as per schedule for progressive commissioning by early 2012.
Post completion of these projects, HZL will be the world’s largest integrated zinc-lead producer with a total smelting capacity of 1,064,000 tonnes.
Liquidity and investment
As at 31st December 2009, the Company had cash and cash equivalents of Rs. 10,700 crore. This includes Rs. 10,200 crore in debt mutual funds and Rs. 500 crore in fixed deposits with banks. The Company follows conservative investment policy and invests in high quality debt instruments. All mutual fund investments are based on advice from CRISIL.
About Hindustan Zinc
HZL is India’s leading integrated producer of zinc & lead and is among the world’s leading integrated producers. It has a metal production capacity of 754,000 tonnes per annum with its smelter operations situated in Chanderiya, Debari and Visakhapatnam. HZL has lead-zinc mines in Rampura Agucha, Sindesar Khurd, Rajpura Dariba and Zawar. HZL has over 6,900 employees. 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.
This press release contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Vedanta Resources Plc
Ashwin Bajaj, +91 22 6646 1531
Vice President – Investor Relations firstname.lastname@example.org
Hindustan Zinc Limited
Samir Bahl, +91 294 242 7675
Vice President – Finance
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, MINING, STOCK EXCHANGES
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