Hindustan Zinc (500188) Q4 99/00 earnings summary

Executive summary

• FY 1999-2000 delivered record sales turnover of ₹1,515.60 crore, PBT of ₹182.17 crore and record zinc metal production; PBT rose 20.5% YoY.

• Rampura-Agucha operated above installed capacity; the Debari and Vizag electrolytic zinc smelters also exceeded rated capacity.

• Achieved Mini Ratna status in October 1999 and an “Excellent” MoU performance rating for FY 1999-2000.

Financial highlights

• Sales turnover ₹1,515.60 crore vs ₹1,309.27 crore in FY 1998-99, an increase of about 16%; PBID ₹261.55 crore vs ₹225.65 crore.

• PBT ₹182.17 crore vs ₹151.15 crore; PAT ₹90.42 crore vs ₹76.32 crore.

• Interest expense fell to ₹10.46 crore from ₹15.24 crore; depreciation and amortisation rose to ₹68.92 crore from ₹59.26 crore.

• Dividend of ₹25.80 crore including tax was recommended as interim-cum-final and had been disbursed; ₹65 crore was transferred to General Reserve.

Outlook and guidance

• Vizag and Debari zinc-smelter expansions were in progress, with mechanical completion expected in Jan-Mar 2001.

• Proposed 100,000 tpa greenfield zinc smelter investment of ₹1,132.34 crore awaited Government approvals; completion expected within 48 months of approval.

• Sindesar Khurd replacement mine was planned for 1,000 tpd at an estimated ₹92 crore; pre-production development and ramp excavation contracts were awarded.

• Kayar prospect drilling was expected to finish in FY 2001-02; 2,963 metres had been completed and preliminary ore-zone intersections were encouraging.