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Hindustan Zinc Ltd.

BSE: 500188 | NSE: HINDZINC |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE267A01025 | SECTOR: Metals - Non Ferrous

BSE Live

Aug 05, 09:16
320.80 1.05 (0.33%)
Volume
AVERAGE VOLUME
5-Day
72,133
10-Day
92,219
30-Day
79,980
557
  • Prev. Close

    319.75

  • Open Price

    323.45

  • Bid Price (Qty.)

    320.85 (6)

  • Offer Price (Qty.)

    320.95 (15)

NSE Live

Aug 05, 09:16
320.75 1.10 (0.34%)
Volume
AVERAGE VOLUME
5-Day
1,335,817
10-Day
1,412,579
30-Day
1,093,075
10,353
  • Prev. Close

    319.65

  • Open Price

    321.00

  • Bid Price (Qty.)

    320.75 (5)

  • Offer Price (Qty.)

    320.85 (1)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Chairman's Speech

2009 Highlights I have great pleasure in reporting another strong year for Hindustan Zinc Limited. We reported revenues of Rs 5,680 crore and PBDIT of Rs 3,665 crore, despite a sharp deterioration in commodity prices and the economic environment. Even in this uncertain environment, we are exceptionally well positioned due to our robust balance sheet, low cost operations, and strong organic growth pipeline with an exemplary track record of delivering capital projects within budget and timelines and continuous upgrading of mineral resources. This provides the foundation for delivering profitable growth and creating long term shareholder value. Higher Volumes We recorded the highest ever metal production in our history. Our mined metal production for zinc and lead in FY 2009was up 17% compared to FY 2008, primarily as a result of commissioning the stream III concentrator at the Rampura Agucha Mine. There was an increase of 26% in refined zinc and lead metal production during the year, compared to the previous year, as result of new zinc smelter commissioned at Chanderiya and the zinc debottlenecking project. Production of saleable silver during the year was the highest ever, up 31 % compared with the previous year. During the year, our captive and wind power generation increased by 37% and 122% respectively, as compared to the previous year. Low Cost Operations We have succeeded in maintaining stable cost of production at the back of increased volumes and higher operational efficiencies despite higher input costs. Strong Organic Growth Opportunities Our portfolio of existing assets and recently completed expansion projects continues to yield superior performance and we continue to make investments that drive sustainable long-term growth. We continue to make excellent progress by delivering strong growth well above the industry average and are on track to produce 1 million tonnes of zinc-lead metal. Strong Balance Sheet and Liquidity Position Excellent cash conversion in FY 2009 has ensured that we exited the year with a strong balance sheet, even with the significant capital investment of Rs 1,340 crore in the period. Over the years, we have consistently generated strong free cash fl ow. We have taken several tax saving initiatives, which have helped push down the current tax rate from 25.8% in FY 2008 to 16.4% in FY 2009. Exploration I am happy to report that we have added signifi cant reserves and resources of 46.3 million tonnes, containing 4.7 million tonnes of zinc-lead metal, prior to a depletion of 0.7 million tonnes of metal. Total reserves and resources as on 31 March 2009 were 272 million tonnes, containing 31.5 million tonnes of zinc- lead metal. Expansion of our reserves and resources base through exploration is a part of our sustainable growth strategy. People In a business like ours, people are at the center of our operations and are critical in helping us achieve our objectives. Our performance and results speaks of the outstanding people we have across our organization. It is because of them that we have come a long way in a short time. On behalf of the Board I am thankful to all of them for all their hard work and efforts. We continue to offer exciting growth opportunities for all our employees. We remain committed to provide a safe and supportive work environment for all. Sustainable Development Sustainable development is a key element of our business. We believe that businesses play an important role in tackling and driving sustainability and climate change challenges. We are determined to pursue value-creating projects for all our stakeholders effectively addressing opportunities and risks pertaining to environment, social, health and safety. Our aim is to establish sustainable accident- free operations. We strive to ensure that our business creates sustainable benefi ts for all our stakeholders. We continue to impact the lives of over 500,000 people in the vicinity of our operations. Dividend The Board of Directors has recommended a dividend of 40%, i.e Rs 4 per equity share, for the current year. Changes to the Board In October 2008, Mr Akhilesh Joshi was appointed as the Chief Operating Officer and Whole Time Director, to lead Hindustan Zinc through the next stage of development. Mr Akhilesh Joshi has worked with the Company for over 30 years and brings vast knowledge and experience in the mining industry. In addition Mr G Srinivas and Mr AR Narayanaswamy were appointed on the Board of Directors. Mr Nand Kishore Shukla, Mr Abhay Kumar Singh, Mr Anil Agarwal, Mr Tarun Jain and Mr Kuldip Kaura ceased to be Directors during the year. Awards and Recognition I am happy that our efforts and actions continue to be acknowledged by the external agencies. During the year, we won over 15 awards in the areas of operational excellence, quality, health and safety, corporate social responsibility; notable amongst them are #2 Best Employer in India 2009 and Amongst the top 25 Best Employers in Asia 2009 by Hewitt Associates, Dun & Bradstreet Corporate Award 2008 for being the Best Company in the Non-Ferrous Metals Sector for the second successive year, IMC Ramkrishna Bajaj National Quality Certificate of Merit 2008 and the Asian Corporate Social Responsibility Award 2008. Outlook The economic environment in FY 2009 remained uncertain and resulted in depressed commodity prices. We are already seeing some support for commodity prices driven by the demand coming from China and India who are continuing to invest in infrastructure projects. The inherent strength of our sustainable low cost operations ensures we are well positioned through the cycle in a period of difficult economic conditions and commodity prices. We have a robust balance sheet and strong liquidity position. We remain focused on reducing our cost of production, delivering our organic growth program on time and at benchmark low capital costs and generating strong free cash flow. AGNIVESH AGARWAL Chairman