Hind Zinc

It is a 64.92% subsidiary of Vedanta Group's Sterlite Industries and is India's largest and world's second largest integrated producer of zinc and lead, with a global market share of 6% in zinc. Being one of the lowest cost producers in the world, the company has 4 mines in Rajasthan, 4 smelting operations (3 in Rajasthan, 1 in Andhra Pradesh) and captive power plant. Its product portfolio includes refined zinc metal, refined lead metal, silver, cadmium and sulphuric acid. Besides being debt-free, company has over Rs.19,136 crore of cash and cash equivalents as at 30th Sept 2012. For Q2FY13, it reported a 14.50% rise in net profit at Rs.1,540 crore and this was driven by higher volumes in lead and silver. Production of refined lead at 24,000 tonnes during the quarter was up 40%, while its silver production increased by 63% at 80 tonnes. Though its main fray, refined zinc production dropped 17% at 1,53,000 tonnes. Topline rose 9% at Rs.2822 crore.

Looking ahead, for FY13, management has guided silver production to be at 350 tonnes. Capex plan for FY13 is expected to be at Rs.1600 crore of which Rs.650 crore is to be spent on  underground mining for H2. It expects overall mined metal production for the entire year to be higher than the previous year. Its expansion at its underground mines at Rampura Agucha and Kayar which can give zinc, lead and silver, are expected to on stream by FY14 and that will become a big earning booster. The company till end of HIFY13 had posted a net profit at Rs.3121 crore as against Rs.5526 crore in FY12. It is expected to end FY13 with a net profit at Rs.6000 crore and expected EPS of around Rs.14.