Regulatory Story
Go to market news section View chart   Print
RNS
Vedanta Resources PLC  -  VED   

HZL announces Q3 FY2013 results

Released 11:14 18-Jan-2013

RNS Number : 8898V
Vedanta Resources PLC
18 January 2013
 



18 January 2013

Vedanta Resources plc

Hindustan Zinc Limited announces Results for the Third Quarter
and Nine Months ended 31 December 2012

 

The following release was issued by Vedanta Resources Plc's subsidiary Hindustan Zinc Limited ("HZL") today.

 

                                             

                                                                                          18 January 2013

 

Hindustan Zinc Limited

Results for the Third Quarter and Nine Months

Ended 31 December 2012

 

Next phase of growth announced; Record mined metal production; Net profit increased by 27%

 

Q3 Highlights

 

Operational Performance -

§ Mined metal production up 11% at a record 233kt

§ Lead production up 11% at 32kt

§ Silver production up 103% at 117t

 

Financial Performance -

§ Revenue up 14% at Rs. 3,140 Crore

§ Net Profit up 27% at Rs. 1,613 Crore

§ Strong balance sheet with cash and cash equivalents of Rs. 19,282 Crore

 

Expansion Projects -

§ Board of Directors approves next phase of growth plan to increase mined metal production capacity to 1.2 mtpa

 

 

Mr. Agnivesh Agarwal (Chairman, Hindustan Zinc) - "I am pleased to announce that the Board of Directors has approved the next phase of growth projects, which will deliver superior performance in future and create long-term value for stakeholders".

 

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 2012.



Unaudited Financial Summary





(In Rs Crore, except as stated)


Quarter Ended

Nine-month Ended

31st December

31st December

2012

2011

Change

2012

2011

Change

Net Sales/Income from Operations







Zinc

   1,975

   2,004

-1%

     5,634

   6,144

-8%

Lead

   371

  308

20%

     1,054

 726

45%

Silver

    645

 257

151%

     1,482

 823

80%

Others

  149

178

-16%

  505

469

8%

Total

3,140

2,747

14%

     8,675

8,162

6%








Cash Profit (Net Profit + Depreciation)

1,790

1,436

25%

     5,259

4,557

15%








Profit After Taxes

1,613

1,274

27%

     4,734

4,113

15%








Earnings Per Share (Rs.)

 3.82

 3.01

27%

     11.20

 9.73

15%








Production - Mined Metal ('000 tonnes)

233

209

11%

610

607

0%

Zinc & Lead














Production - Refined Metal ('000 tonnes)







Total Zinc

171

191

-10%

495

569

-13%

- Fully integrated Zinc

168

188

-10%

479

563

-15%

Total Lead1

32

29

11%

90

62

45%

- Fully integrated Lead

22

25

-11%

75

58

29%

Total Silver2 (tonnes)

117

58

103%

290

154

89%

- Fully integrated Silver

62

58

8%

222

154

44%








Metal Prices and Exchange Rate







Zinc LME (USD/MT)

   1,947

  1,897

3%

  1,920

  2,123

-10%

Lead LME (USD/MT)

   2,199

  1,983

11%

  2,051

  2,328

-12%

Silver LBMA (USD / oz)

 32.7

31.9

3%

30.7

36.2

-15%

INR / USD

 54.1

51.0

6%

 54.5

47.2

16%








(1)    Includes captive consumption of 1,647 tonnes in Q3 FY2013 vs. 1,730 tonnes in Q3 FY2012, and 4,723 tonnes in 'nine months period' FY2013 vs. 4,469 tonnes in 'nine months period' FY2012.

(2)   Includes captive consumption of 8,440 Kgs. in Q3 FY2013 vs. 9,182 Kgs. in Q3 FY2012, and 24,606 Kgs. in 'nine months period' FY2013 vs. 23,572 Kgs. in 'nine months period' FY2012.

 

Operational Performance

 

Mined metal production in Q3 was up 11% at an all time high of 233kt, compared with the corresponding prior quarter. This was 22% higher sequentially and we expect to close the year ahead of last year's production, in accordance with our earlier guidance.

 

Refined Lead production in Q3 was 32kt up 11% and Refined Silver production was 117t up 103%, as compared with the corresponding prior quarter. This was mainly attributable to higher volume of custom production, as the mined metal production improved progressively during the quarter.

 

Refined Zinc production in Q3 was down 10% at 171kt, as compared with the corresponding prior quarter. It improved 5% on a sequential basis and we expect higher volumes in Q4.

 

Financial Performance

 

Revenues for Q3 were up 14% at Rs. 3,140 Crore, compared with the corresponding prior quarter. The increase was primarily due to higher Lead-Silver volumes, further supported by improved LME/LBMA prices & INR depreciation. Net profit for the quarter was higher by 27% at Rs. 1,613 Crore.

 

The Zinc metal cost, without royalty, during the quarter was Rs. 44,900 per MT ($829), 11% higher in INR and 6% in USD, compared with the corresponding prior quarter. The positive impact of operational efficiencies and lower coal prices was more than offset by increase in commodity prices, higher excavation & lower by-product credits.

 

Expansion Projects

 

The Board of Directors has approved the next phase of growth plan. HZL has been actively conducting exploration, which increased net Reserve and Resource across all mines to 332.3 million tonnes in FY2012. Based on long-term evaluation of assets and in consultation with mining experts, the Company has finalised the next phase of growth plan, which will involve sinking of underground shafts and developing underground mines. The plan comprises of developing a 3.75 mtpa underground mine at Rampura Agucha and expanding Sindesar Khurd mine from 2.0 mtpa to 3.75 mtpa, Zawar mines from 1.2 mtpa to 5.0 mtpa, Rajpura Dariba mine to 1.2 mtpa and Kayad mine to 1.0 mtpa. It will also involve opening up of a small new mine at Bamnia Kalan in Rajpura Dariba belt. The growth plan will increase mined metal (MIC) production capacity to 1.2 mtpa.

 

The mines will be developed using best-in-class technology and equipment and in consultation with leading global mine experts, ensuring highest level of productivity. The projects will be completed in six years and benefit of growth projects will start flowing in from third year, even as projects will continue till FY18-19. Annual capital expenditures for these projects will average USD 250 million a year over next six years.

 

Liquidity and investment

 

Company follows conservative Investment Policy and invests in high quality debt instruments. As on 31 December 2012, the Company had cash and cash equivalents of Rs. 19,282 Crore, out of which Rs. 10,626 Crore was invested in debt mutual funds, Rs. 1,712 in bonds and Rs. 6,923 Crore were in fixed deposits with scheduled banks.

 



For further information, please contact:

Investors

Ashwin Bajaj

Senior Vice President - Investor Relations

Vedanta Resources plc

 

ir@vedanta.co.in

Tel:  +91 22 6646 1531

 

Media

Gordon Simpson

Finsbury

Tel:  +44 20 7251 3801

 

 

About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visit www.vedantaresources.com.

 

Disclaimer

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.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
QRTBBGDBIGBBGXI
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


HZL announces Q3 FY2013 results - RNS