Hind Zinc

The market was not too enthused with the performance of Hindustan Zinc, which came in before market closure yesterday. The numbers for Q4FY14 were especially stressed. Its net sales at Rs.3589 crore was down 7% (YoY), led by fall in silver and other metals. This was mainly due to no sale of MIC and lower silver sales, partly offset by rupee depreciation. Lead was the only metal to report a growth, with zinc too showing a degrowth. EBITDA came in at Rs.1736 crore, down 18% due to lower volume and metal prices while net profit was at Rs.1881 crore, down 13%. During the quarter, the total mined metal production was down 23%. The cost for Q4 FY2014 was Rs. 55,467 ($899), 24% higher in Rupee and 8% higher in US$ terms from corresponding period of previous year. The increase was due to 14% rupee depreciation, lower mined metal production and higher mine development.

For FY14, the company posted a 7% rise in net sales at Rs.13,459 crore but net profit was flat at Rs.6905 crore. EBITDA came in at Rs.6974 crore, 7% up. For the year, it recorded the highest metal production ever at 880 kt. In terms of integrated metal production, that too was at a record - saleable zinc metal production up 13% and saleable lead and silver metal production up 10% and 4% respectively. In terms of reserves and resources (R&R), it was at tr365.1 million MT indicating mine life of over 25 years. Its gross addition was at 26.1 million MT against depletion of 9.3 million MT.

The company declared a final dividend of 95%, taking the total dividend for the year to 175%, the highest ever. As on March 31, 2014, the Company had cash and cash equivalents of Rs. 25,535 crore, out of which Rs. 20,527 crore was invested in debt mutual funds, Rs. 1977 crore in bonds and Rs 3020 crore were in fixed deposits with banks.