Hindustan Zinc (500188) Q4 03/04 earnings summary

Executive summary

• FY2003-04 gross turnover was ₹20,790.13 million; profit after tax was ₹4,045.88 million, supported by higher output, sales volumes, realizations and cost reductions.

• Record zinc metal production of 261,226 MT and sales of 259,130 tonnes maintained a leading domestic position; zinc sales covered about 72% of domestic requirement.

Financial highlights

• Net sales were ₹18,414.94 million versus ₹14,112.63 million in FY2002-03; gross turnover rose to ₹20,790.13 million from ₹16,087.22 million.

• EBITDA was ₹6,608 million versus ₹3,304 million; PAT was ₹4,045.88 million versus ₹1,421.52 million.

• PBT was ₹5,847.33 million versus ₹2,293.64 million; EPS was ₹9.58 versus ₹3.36.

• Proposed dividend was 14% of paid-up equity capital; total outgo including dividend tax was ₹667.34 million versus ₹381.34 million.

Outlook and guidance

• Zinc demand was forecast to grow 4–5% annually worldwide over the next 2–3 years and 12–14% annually in India; lead-industry growth in India was estimated at 8% annually.

• Zinc and lead capacity expansions of 170,000 tonnes and 50,000 tonnes per annum, respectively, were planned to meet expected demand growth.

• Chanderiya smelter, captive power and Rampura Agucha mine expansion was on schedule, with completion expected in Q4 FY2004-05; project ordering was nearly complete at 31 May 2004.

• Indian zinc consumption was estimated to reach 400,000 tonnes in 2004, supported by infrastructure investment and galvanizing demand.