MUMBAI, India, July 21, 2014 /PRNewswire/ --
The following release was issued today by Sesa Sterlite Limited's subsidiary Hindustan Zinc Limited.
Hindustan Zinc Limited
Results for the First Quarter Ended June 30, 2014
Hindustan Zinc Limited today announced its results for the first quarter ended June 30, 2014.
(Logo: http://photos.prnewswire.com/prnh/20140117/663814 )
Mr. Agnivesh Agarwal (Chairman, Hindustan Zinc) - "Zinc prices are looking up as market sentiments are improving and metal balance remains favourable. Our expansion projects will enhance our market leadership and we are aggressively accelerating our mine development efforts to increase future production."
Financial Summary
(In Rs. Crore, except as stated)
Particulars Q1 Q4
2015 2014 Change 2014
Net Sales/Income from Operations
Zinc 2,057 1,986 4% 2,591
Lead 452 402 12% 536
Silver 318 408 -22% 375
Others 136 143 -5% 87
Total 2,963 2,939 1% 3,589
EBITDA 1,352 1,506 -10% 1,736
Profit After Taxes 1,618 1,660 -3% 1,881
Earnings per Share (Rs.) 3.83 3.93 -3% 4.45
Mined Metal Production ('000 MT) 163 238 -31% 200
Refined Metal Production ('000 MT)
Total Refined Zinc 141 174 -19% 183
- Zinc - Integrated 139 173 -20% 179
Total Saleable Refined Lead[1] 31 31 -1% 36
- Saleable Lead - Integrated 22 27 -21% 29
Total Refined Saleable Silver[2],[3](in MT) 82 96 -15% 91
- Saleable Silver - Integrated 56 77 -28% 68
Wind Power (in million units) 146 162 -10% 76
Zinc CoP without Royalty (Rs. / MT) 60,093 46,765 29% 55,467
Zinc CoP without Royalty ( $ / MT) 1,005 836 20% 899
Zinc LME ($ / MT) 2,074 1,840 13% 2,029
Lead LME ($ / MT) 2,096 2,049 2% 2,106
Silver LBMA ($ / oz.) 19.6 23.1 -15% 20.5
USD-INR 59.8 55.9 7% 61.8
(1) Excluding captive consumption of 1,689 MT in Q1 FY 2015, as compared with 1,644 MT in corresponding prior period.
(2) Excluding captive consumption of 8,777 MT in Q1 FY 2015, as compared with 8,844 MT in corresponding prior period.
(3) Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes
Operational Performance
Mined metal production was 163,131 MT in Q1, as compared with 237,825 MT a year ago. The decrease is in-line with our mine plan, which involves lower mined metal production on a year-on-year basis in the first half of the year where we excavate more waste than ore. With higher production planned in second half, the transition to underground mining is progressing well.
Integrated refined metal production of zinc-lead during the quarter was lower by ~20% compared to a year ago, in-line with mined metal production.
The zinc metal cost of production before royalty during the quarter was Rs. 60,093 ($1,005), which is 29% higher in Rupee and 20% higher in USD term from a year ago. The lower production volumes significantly impacted costs, accentuated by rupee depreciation, planned plant shutdowns and higher mine development.
Financial Performance
Revenues were up 1% to Rs. 2,963 crore in Q1 FY 2015 as compared with the corresponding prior period. The increase was driven by higher zinc LME price & premium and rupee depreciation, offset by lower volumes.
EBITDA decreased by 10% to Rs. 1,352 crore in Q1 FY 2015 due to lower production volumes and higher production cost.
Net profit decreased by 3% to Rs. 1,618 crore in Q1 FY 2015. The impact of lower EBITDA was partly offset by strong other income during the quarter.
Expansion Projects
During the quarter, total mine development increased by 15%. Rampura Agucha and Sindesar Khurd shaft projects are progressing well. India's first paste-fill plant is under commissioning at Rampura Agucha mine. Mine design and planning for further deepening of the pit at Rampura Agucha is under progress to explore extension of mine life.
Liquidity and investment
As on June 30, 2014, the Company had cash and cash equivalents of Rs. 26,272 crore, out of which Rs. 22,172 crore was invested in mutual funds, Rs. 2,049 crore in bonds and Rs 2,000 crore were in fixed deposits with banks. The Company follows a conservative investment policy and invests in high quality debt instruments.
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About Sesa Sterlite Limited
Sesa Sterlite Limited ("Sesa Sterlite") is one of the world's largest diversified natural resources companies. Our business primarily involves exploring, extracting and processing minerals and oil & gas. We produce oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and have a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East.
Sustainability is at the core of Sesa Sterlite's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities.
Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company. Sesa Sterlite is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.
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 behavior 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.
Sesa Sterlite Limited
(Formerly known as Sesa Goa Limited)
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400 099
Registered Office:
Sesa Ghor, 20 EDC Complex,
Patto, Panaji (Goa) - 403 001
CIN: L13209GA1965PLC000044
Communications
Roma Balwani
Executive Vice President - Group Communications & CSR
Tel: +91-22-6646-1330
gc@vedanta.co.in
Investor Relations
Ashwin Bajaj
Senior Vice President - Investor Relations
Sheetal Khanduja
Associate General Manager - Investor Relations
Hitesh Dhaddha
Manager - Investor Relations
Tel: +91-22-6646-1531
Sesasterlite.ir@vedanta.co.in
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