Hind Zinc

Revenues during the quarter was at Rs. 3,070 crore, which is 25% lower from a year ago. The decrease was on account of lower zinc volumes and LME, partly offset by higher volumes of lead & silver and rupee depreciation. Thanks to the tax write back of Rs.301 crore, the company could at least post a rise in net profit – it was up 8% at Rs.2149 crore. It was also helped  by higher other income due to mark to market gains on investment income. The tax write back was on account of substantial liquidation of investments at year end for payment of special dividend; the corresponding realised profits were set off by carried forward tax losses, significantly lowering the tax for the year. EBITDA for the quarter was down 35% at Rs.1296 crore.

Mined metal production in Q4 was 188kt, 30% (YoY) lower and 17% lower than Q3. The decrease was on account of lower production primarily from Rampura Agucha open pit as per the mine plan, which was partially offset by record production from all the underground mines especially Sindesar Khurd and Kayad mines, also resulting in higher lead and silver volumes. For the full year period, mined metal production was marginally higher in-line with guidance.

Refined zinc metal production during the quarter was 29% lower y-o-y and 25% lower than Q3 in-line with the mined metal production. Integrated lead and silver metal production during the quarter increased by 16% and 65% respectively compared to corresponding prior quarter primarily due to higher volumes from the silver rich Sindesar Khurd mine.

On March 30, 2016, the Board of Directors declared a Special Golden Jubilee dividend of 1200% i.e. Rs. 24 per share on share of Rs. 2 each. This dividend entails an outflow of Rs. 12,205 crore, including dividend distribution tax (DDT). This is the largest ever single dividend paid by any company in the private sector and is the second highest in Indian corporate history. The special dividend was in addition to the first interim dividend paid (Rs. 3.80 per share) in October 2015. The total dividend outflow including DDT for FY 2016 was Rs. 14,137 crore (Rs. 27.80 per share or 1390%) against Rs. 2,207 crore (Rs. 4.40 per share or 220%) a year ago.

The Company’s cash and cash equivalents increased to Rs. 35,235 crore as at March 31, 2016, before outflow of Rs. 12,205 crore of Special Golden Jubilee dividend including DDT.

The company ended FY16 with a flat net profit at Rs.8,167 crore v/s Rs.8,178 crore in FY15.