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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 04, 13:09
319.80 -1.60 (-0.50%)
Volume
AVERAGE VOLUME
5-Day
75,605
10-Day
97,157
30-Day
79,707
52,061
  • Prev. Close

    321.40

  • Open Price

    325.35

  • Bid Price (Qty.)

    319.60 (5)

  • Offer Price (Qty.)

    319.80 (50)

NSE Live

Aug 04, 13:09
319.85 -1.40 (-0.44%)
Volume
AVERAGE VOLUME
5-Day
1,408,697
10-Day
1,466,575
30-Day
1,117,551
379,294
  • Prev. Close

    321.25

  • Open Price

    322.00

  • Bid Price (Qty.)

    319.60 (80)

  • Offer Price (Qty.)

    319.85 (113)

Annual Report

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

Chairman's Speech

I am delighted to report that FY 2011 was yet another year of record volumes, growth and proftability. We have consistently delivered on our commitments and produced strong results. Commodity prices and industrial demand have rebounded sharply; staging a return to economic growth and augmenting conviction and optimism in the global markets. Our excellent liquidity position, strong cash flows, low-cost operations, strong organic growth pipeline and continuous upgrading of mineral resources; ensures our long-term sustainability, operational growth and proftability and enhanced shareholder value. Financial Performance We reported yet another set of excellent results in FY 2011; driven by strong volume growth, operational efciencies and improved LME prices. We reported Revenues and PBDIT of Rs. 9,912 Crores and Rs. 6,454 Crores; up by 24% and 20% compared to the previous year. Even with the significant capital investment of Rs. 1,324 Crores in the period, due to our excellent cash conversion, we exited the year with a cash-rich balance sheet having cash/bank balance and liquid investments of around Rs. 14,965 Crores. Operational Performance and Organic Growth I have great pleasure in reporting a record production of Zinc-Lead mined metal, refned Zinc metal and refned Silver during the year. The Zinc-Lead mined metal production during the year was 840,000 tonnes, up by 9% compared to the previous year. Refned Zinc metal production during FY 2011 was highest ever at 712,000 tonnes, up by 23% compared to the previous year. The refned Silver production for FY 2011 was higher at 179,000 kg. During the year, our total power generation increased by 14% to 2,811.8 Million Units, compared to the previous year. The wind power generation was marginally lower at 201.4 Million Units, compared to the previous year. We have accelerated the pace of ramp-up at our Silver-rich Sindesar Khurd mine with the commissioning of 1.50 mtpa concentrator. During the year, we also successfully commissioned 160 MW (80X2) CPP at Dariba. Commissioning of the 100 ktpa Lead smelter at Dariba is expected to be completed in Q1 of FY 2012, post which, we would achieve our stated objective of over 1 mt of metal production capacity. Our portfolio of existing assets and recently completed expansion projects continues to yield superior performance, and we continue to make investments and pursue opportunities that drive long- term sustainable growth. Exploration I am delighted to report that our ongoing exploration activities have yielded significant success with an increase of 22.1 mt to the reserves and resources, prior to a depletion of 7.5 mt in FY 2011. Contained Zinc-Lead metal has increased by 1.4 mt, prior to a depletion of 0.84 mt during the same period. Contained Silver has increased to 885 million ounces from 832.8 million ounces last year. Total reserves and resources as on 31 March 2011 were 313.2 mt containing 34.7 mt of Zinc-Lead metal and 885 million ounces of Silver. Expansion of our reserves and resources base through exploration is a part of our sustainable growth strategy. People The investment that a Company makes in its people is one of the most important investments it can ever make. I am perennially amazed and impressed with the competency, dedication, integrity and enthusiasm of our employees at every level of the Company. We have undergone a phenomenal transformation at the back of competency and improvement- oriented work culture of our people, supported by a string of debottlenecking and expansions. Our people continue to play a vital role in helping the organisation to create value and to grow with confidence. We believe in recruiting truly outstanding people, providing them with quality assignments, training, support and international opportunities in order to help them fourish both professionally and personally. I would like to thank all our employees for their continued contribution to the growth, success and sustainability of the Company. We continue to ofer exciting growth opportunities for all our employees and remain committed towards providing a safe and supportive work environment for all. Sustainability Sustainability is a key element of our strategy for future and is consequently, embedded into our routine management processes and practices. We view environmental and social stewardship as one of our key responsibilities. We believe that businesses play an important role in tackling and driving sustainability and climate change challenges. We are constantly involved in seeking proactive solutions to manage the environmental impact of our operations. We have established stringent management systems centred on safety, health, environment and social performance. We continue to impact the lives of over 500,000 people in the vicinity of our operations. Our focus is on nurturing leaders, conserving resources, improving health, safety and environmental performance, enhancing the quality of life and fostering innovation. We strive to ensure that our business creates sustainable benefits for each and every one of our stakeholders. Shareholders value Keeping in view the demand of the investor community, during the year equity share of Rs. 10/- each was sub- divided into 5 equity shares of Rs. 2/- each, and a bonus issue in the ratio of one equity share of Rs. 2/- each was issued for every one equity share of Rs. 2/- each held. Due to the issue of Bonus shares, the authorised capital of the Company was increased from Rs. 500 Crores to Rs. 1,000 Crores. The board of directors has recommended a dividend of 50%, i.e., Rs. 1/- per equity share of Rs. 2/- each, for the current year. The dividend is payable on an increased share capital following a 1:1 bonus issue. Awards and Recognition We are pleased and humbled to have our efforts acknowledged by the external agencies. During the year, we won numerous awards in the areas of operational excellence, quality and health-safety-environment; notable amongst these are the IMC Ramakrishna Bajaj National Quality Award - Performance Excellence Trophy (RBNQA 2010); the CII - National Water Management Award 2010; the CII - National Energy Management Award 2010; and the FIMI-Gem Granites Environment Award for the Year 2009-10. Outlook The year has witnessed a significant recovery in demand and commodity prices, which appears deep-seated and stable. Outlook for our commodities thus remains strong. We remain focused on reducing our cost of production, delivering our organic growth programme on time and at benchmark low capital costs and generating strong free cash flows. We have successfully commissioned our 1.50 mtpa concentrator at Sindesar Khurd Mine, and 160 MW (80 X2) CPP at Dariba Smelting Complex; the operational impact of which will be visible in the next fiscal. We are focused on substantially increasing our Silver production through increased mine volumes and improved recovery and efficiency. With the completion of the 100 ktpa Lead smelter and 16 million oz of Silver processing capacity in Q1 of FY 2012, we would achieve our objective of over 1 mt of metal production capacity. Agnivesh Agarwal Chairman