Hindustan Zinc (500188) Q4 01/02 earnings summary

Executive summary

• FY02 turnover was Rs 147,048.64 lakh vs Rs 157,388.12 lakh; profit after tax fell to Rs 6,796.20 lakh from Rs 16,921.99 lakh as zinc prices weakened.

• Zinc and lead output rose 19% and 9%, respectively, while zinc sales reached a record 168,652 tonnes.

• Government approved transfer of a 26% stake and management control to Sterlite Opportunities and Ventures; the Government’s holding fell to 49.92%.

Financial highlights

• Total income was Rs 152,874.51 lakh vs Rs 167,274.82 lakh; operating profit was Rs 10,431.35 lakh vs Rs 28,319.75 lakh.

• PBT was Rs 10,410.86 lakh vs Rs 28,221.99 lakh; PAT was Rs 6,796.20 lakh vs Rs 16,921.99 lakh.

• Proposed dividend was 5%; equity dividend outgo was Rs 2,112.66 lakh vs Rs 5,281.65 lakh.

• Export earnings from zinc and lead concentrates were Rs 510 million; foreign exchange outflow was Rs 154 million.

Outlook and guidance

• Zinc demand was forecast to grow 3–4% annually worldwide and 6–6.5% in India during the next two to three years / IX and X Plan periods, respectively.

• Indian lead consumption was forecast to grow ~7% annually during the IX and X Plan periods, supported by batteries, inverters and automobiles.

• Capacity expansion in phases was under consideration to meet domestic zinc and lead demand and enter overseas markets; higher sales volume was expected in FY03.