By LSE RNS
Vedanta Resources plc
16 Berkeley Street
London W1J 8DZ
Tel: +44 (0) 20 7499 5900
Fax: +44 (0) 20 7491 8440
www.vedantaresources.com
10 February 2017
Vedanta Resources plc
Hindustan Zinc announces Q3 FY2017 Results
Vedanta Resources plc's subsidiary Hindustan Zinc Limited today announced results for the third quarter ended 31 December 2016.
Hindustan Zinc Limited
Results for the Third Quarter Ended December 31, 2016
"Highest ever mined metal production, EBITDA at all-time record"
§ Record mined metal production at 276kt in Q3; up 44% q-o-q
§ Integrated metal production increased q-o-q: zinc 38%, lead 26% and silver 10%
§ EBITDA at Rs. 2,757 Crore in Q3; up 33% q-o-q
§ Environment clearances received for Zawar and Sindesar Khurd expansions
Mumbai, February 10, 2017: Hindustan Zinc Limited today announced its results for the third quarter ended December 31, 2016.
Mr. Agnivesh Agarwal, Chairman -
"2016 was a strong year as zinc prices surged over 55 percent during the quarter compared to a year ago. With no new zinc mines being commissioned in the near future, zinc market outlook remains positive for 2017 also. I am pleased to report a five year CAGR of 38 percent in our underground mined metal production. We are uniquely poised to benefit from these dynamics, being the only primary zinc producer in the country."
Particulars |
Q3 |
Q2 |
Nine Months Ended December 31, 2016 |
|||||
2017 |
2016 |
Change |
2017 |
Change |
2017 |
2016 |
Change |
|
Sales/Income from Operations |
|
|
|
|
|
|
|
|
Zinc |
4,120 |
2,685 |
53% |
2,697 |
53% |
8,742 |
8,858 |
-1% |
Lead |
649 |
469 |
38% |
496 |
31% |
1,485 |
1,479 |
0% |
Silver |
483 |
398 |
21% |
482 |
0% |
1,325 |
1,064 |
25% |
Others |
96 |
124 |
-23% |
145 |
-34% |
391 |
441 |
-11% |
Total |
5,348 |
3,676 |
45% |
3,820 |
40% |
11,943 |
11,842 |
1% |
EBITDA |
2,757 |
1,470 |
88% |
2,077 |
33% |
5,964 |
5,366 |
11% |
Profit After Taxes |
2,320 |
1,840 |
26% |
1,902 |
22% |
5,259 |
6,028 |
-13% |
Earnings per Share (Rs., not annualised) |
5.49 |
4.35 |
26% |
4.50 |
22% |
12.45 |
14.27 |
-13% |
Mined Metal Production ('000 MT) |
276 |
228 |
21% |
192 |
44% |
595 |
700 |
-15% |
Refined Metal Production ('000 MT) |
|
|
|
|
|
|
|
|
Integrated Refined Metal |
|
|
|
|
|
|
|
|
Zinc |
205 |
206 |
0% |
149 |
38% |
456 |
605 |
-25% |
Saleable Lead1 |
39 |
35 |
10% |
31 |
26% |
94 |
102 |
-8% |
Zinc & Lead |
244 |
242 |
1% |
179 |
36% |
550 |
707 |
-22% |
Saleable Silver2,3 (in MT) |
118 |
116 |
2% |
107 |
10% |
314 |
300 |
5% |
Total Refined Metal |
|
|
|
|
|
|
|
|
Zinc |
205 |
206 |
0% |
150 |
37% |
457 |
605 |
-24% |
Saleable Lead1 |
39 |
35 |
10% |
31 |
26% |
94 |
106 |
-12% |
Zinc & Lead |
244 |
242 |
1% |
181 |
35% |
551 |
711 |
-22% |
Saleable Silver2,3 (in MT) |
118 |
116 |
2% |
107 |
10% |
314 |
303 |
4% |
Wind Power (in million units) |
53 |
67 |
-21% |
172 |
-69% |
373 |
353 |
6% |
Zinc CoP without Royalty (Rs./ MT) 4 |
58,067 |
52,452 |
11% |
54,186 |
7% |
57,198 |
51,118 |
12% |
Zinc CoP without Royalty ( $ / MT) 4 |
861 |
796 |
8% |
809 |
6% |
852 |
789 |
8% |
Zinc LME ($ / MT) |
2,518 |
1,613 |
56% |
2,255 |
12% |
2,230 |
1,878 |
19% |
Lead LME ($ / MT) |
2,150 |
1,681 |
28% |
1,873 |
15% |
1,913 |
1,776 |
8% |
Silver LBMA ($ / oz.) |
17.2 |
14.8 |
16% |
19.6 |
-12% |
17.9 |
15.3 |
17% |
USD-INR (average) |
67.5 |
65.9 |
2% |
67.0 |
1% |
67.1 |
64.8 |
4% |
(1) Excluding captive consumption of 1,731 MT in Q3 FY2017 as compared with 2,050 MT in corresponding prior period and 837 MT in previous quarter. For nine month period, it was 3,652 MT as compared with 5,748 MT a year ago.
(2) Excluding captive consumption of 8.9 MT in Q3 FY2017 as compared with 10.7 MT in corresponding prior period and 4.3 MT in previous quarter. For nine month period, it was 18.7 MT as compared with 29.7 MT a year ago.
(3) Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes.
(4) The COP numbers are after adjusting for deferred mining expenses under Ind-AS. Without this adjustment, Zinc CoP per MT would have been Rs. 50,277 ($745) as compared with Rs. 52,383 ($795) in Q3 FY 2016 and Rs. 62,035 ($926) in Q2 FY 2017. For nine month this would be Rs. 59,740 ($890) compared to Rs. 51,137 ($789) in corresponding prior period.
Note:
1) Historical numbers have been revised as per Ind-AS reporting
2) Numbers may not add up due to rounding off; historical numbers may have changed due to regrouping
Highest ever mined metal production was achieved during the quarter, up 44% from previous quarter and 21% y-o-y. The q-o-q increase was on account of higher volumes from Rampura Agucha open cast mine in accordance with mine plan and the y-o-y increase was driven by higher volumes from Rampura Agucha underground as well as open cast mines. During the nine month period, underground mines ramped up significantly to achieve a substantial 60% y-o-y increase in ore production and 53% y-o-y increase in mined metal production. In line with the plan of substantially higher mined metal production in H2, mined metal production during the nine month period was lower by 15% y-o-y and will be higher than FY 2016 for full year with Q4 being higher than Q3.
Integrated zinc metal production during the quarter was at 205kt, up 38% from previous quarter and flat y-o-y on account of accretion of mined metal inventory. Integrated saleable lead metal production during the quarter was 39kt, up 26% sequentially and 10% y-o-y. The y-o-y increase was in line with mined metal production, while the sequential increase was accentuated on account of enhanced smelter efficiencies. Integrated saleable silver production during the quarter increased by 10% to 118 MT from previous quarter and 2% y-o-y. For the full year, integrated zinc metal production will be lower than FY 2016 in accordance with the low availability of mined metal in H1, however, some quantity of mined metal will be sold in Q4. Saleable lead production for the full year will be in line with FY 2016 and silver production will be higher than FY 2016.
Revenues were at Rs. 5,348 Crore, up by 40% q-o-q and 45% y-o-y. The q-o-q increase was primarily on account of higher volumes and higher zinc & lead LME. The y-o-y increase was mainly driven by substantially higher volumes, higher metal prices and rupee depreciation
The zinc metal cost of production per MT before royalty (COP) during the quarter was at Rs. 58,067 ($861), up 7% q-o-q (6% in dollar terms) and 11% y-o-y (8% in dollar terms). The q-o-q increase in COP was largely on account of onetime change in the ore to waste ratio norm over life of mine and additional excavation in Rampura Agucha open cast, further accentuated by significantly higher mine development in underground mines, increase in coal prices and lower acid realisation, partly offset by higher volume & overall average grade. The y-o-y increase was attributed primarily to the aforementioned one time change in ore to waste ratio norm, substantially higher coal & commodity prices, lower acid realisation and higher mine development.
During the quarter, EBITDA was an all-time record of Rs. 2,757 Crore, up 33% q-o-q and 88% y-o-y.
Net profit during the quarter was at Rs. 2,320 Crore, up 22% q-o-q and 26% y-o-y. The impact of higher EBITDA was partly offset by higher depreciation & tax in both periods while investment income was sequentially lower on account of lower mark to market gains.
As on December 31, 2016, the Company's net cash and cash equivalents was Rs. 25,319 Crore, out of which Rs. 20,644 Crore was invested in mutual funds and Rs. 4,593 Crore in bonds. The Company follows a conservative investment policy and invests in high quality debt instruments.
Earnings Call on Friday, February 10, 2017 at 15:15 hrs (IST)
The Company will hold an earnings conference call on Friday, February 10, 2017 at 3:15 pm IST, where senior management will discuss the Company's results and performance. The dial in number for the call is:
Primary Number: +91 22 3960 0762 Local Access Number: 3940 3977
Available in - Ahmedabad, Bangalore, Chandigarh, Chennai, Gurgaon (NCR), Hyderabad, Kochi/Cochin, Kolkata, Lucknow, Pune
Accessible from all carriers.
For further information, please contact:
Communications |
Finsbury |
Roma Balwani President - Group Communications, Sustainability and CSR Tel: +91 22 6646 1000
|
Daniela Fleischmann Tel: +44 20 7251 3801 |
Investors |
|
Ashwin Bajaj Director - Investor Relations
Radhika Arora Associate General Manager - Investor Relations
Ravindra Bhandari Manager - Investor Relations |
Tel: +44 20 7659 4732 Tel: +91 22 6646 1531 |
About Vedanta Resources
Vedanta Resources plc ("Vedanta") is a London listed diversified global natural resources company. 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 and Australia. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of trust, sustainability, growth, entrepreneurship, integrity, respect and care. 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.
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