Hindustan Zinc reports 42% YoY rise in Q4 net profit at Rs 3,057 crore

Kolkata: Hindustan Zinc Ltd (HZL) saw a 42% jump in its net profit to Rs 3,057 crore for the fourth quarter ended March 31, 2017 (Q4FY17) on strong zinc prices compared to the same period of FY16.

For the year as a whole HZL’s net rose 2% to Rs 8,316 crore. In a statement issued on Thursday HZL said revenues during the quarter were Rs 6,699 Crore, up 97% y-o-y on account of strong zinc, lead & silver prices, higher production and sale of mined metal.

For the full year, revenues were up by 22% at Rs 18,642 Crore primarily on account of higher LME & silver prices and sale of mined metal in Q4, partly offset by lower zinc volume.

The zinc metal cost of production per tonne before royalty (COP) during the quarter was at Rs. 53,226 lower by 8% y-o-y. The decrease which was due to higher production volumes from Rampura Agucha open cast mine was offset by higher coal among other costs.

For the full year, zinc COP was Rs. 55,679, up 6% from a year ago on account of lower integrated production, higher coal & prices among others. This resulted in a 190% y-o-y increase in EBITDA during the quarter to Rs 3,770 crore and 46% increase for the full year to Rs 9,734 crore. However, the impact of higher EBITDA was partly offset by higher tax, higher depreciation and lower mark to market gains on a smaller investment corpus.

“The company returned Rs 27,157 crore (including dividend distribution tax) to shareholders in the 12 months ending March 31, 2017, a record in Indian corporate history. HZL’s record performance, supported by strong zinc prices, has helped generate unparalleled value for its stakeholders during the year,” Agnivesh Agarwal, chairman HZL said commenting on the performance.

On March 22, 2017, HZL’s Board of Directors declared a special interim dividend of 1375% i.e. Rs 27.50 per share on share of Rs 2 each. Together, with the Golden Jubilee dividend paid in April 2016 and the interim dividend paid in October 2016, the aggregate dividend outflow by the company during the financial year 2016-17 was R. 27,157 crore including DDT, which is the largest dividend outflow by any company in India in a single financial year.

“In view of the special interim dividend paid earlier this month, no final dividend is recommended, the company statement added.

HZL achieved highest ever mined metal production during the quarter under review, up 13% from previous quarter and 66% y-o-y.

Mined metal production during the full year period was at 907kt, up 2% y-o-y in line with guidance. Production from underground mines was ramped up significantly during the year to achieve 44% y-o-y increase in ore production and 32% y-o-y increase in mined metal production, HZL said. Integrated zinc metal production during the quarter was at 215kt, up 5% q-o-q and 40% y-o-y.

For the full year, integrated zinc metal production was lower by 12% at 670kt and integrated lead metal production remained flat at 139kt.