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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

Jul 30, 15:48
321.00 -2.25 (-0.70%)
Volume
AVERAGE VOLUME
5-Day
92,051
10-Day
103,510
30-Day
89,775
94,570
  • Prev. Close

    323.25

  • Open Price

    326.00

  • Bid Price (Qty.)

    320.95 (25)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jul 30, 15:59
320.50 -3.05 (-0.94%)
Volume
AVERAGE VOLUME
5-Day
1,162,163
10-Day
1,475,541
30-Day
1,149,106
2,759,663
  • Prev. Close

    323.55

  • Open Price

    325.90

  • Bid Price (Qty.)

    320.50 (3015)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Chairman's Speech

Dear Shareholders It is a privilege for me to represent a team of highly motivated individuals who put in their best to create value for the trust you have placed in us. In our golden jubilee year, we have delivered our best ever performance. We achieved new benchmarks and delivered record operating profit, net profit and mined metal output along with significant progress in expansion projects. While the higher zinc LME price certainly helped, record treasury income and operational efficiencies also contributed significantly to the year''s performance. Forward on Global Market Scenario The market expects refined zinc consumption growth to continue in FY 2016 with China maintaining about 50% share of global zinc consumption. Infrastructure spending and strong automotive sales globally is likely to bolster zinc demand by 4-5% p.a. in near term. Additionally, closure of several zinc mines across the world bodes well for zinc price outlook in the medium term and widens opportunities for resilient players in the business. Forward on Indian Scenario Infrastructure, construction and automobile industries are the main demand drivers for zinc in India. We have been consistently increasing our production capabilities to make India self-sufficient in zinc. Government''s focus on ''Make in India'', infrastructure development and ''Smart Cities'' is expected to provide further impetus to the Indian metal market in FY 2016. A significant event during the year was the enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2015 (MMDRA Act) in March 2015. On the positive side, the MMDRA Act provides continuity to our mining leases, at least till 2030. The Act also brings transparency in grant of mineral concessions via auctions and reduces disputes. However, it will increase outgo to government on existing leases. Royalty rates for zinc and lead in India are 10% and 14.5% respectively on value of mined metal, which is amongst the highest in the world and much higher compared to other base metals. Royalty rates were increased recently in September 2014. MMDRA Act can further increase payments to government by upto 100% on account of contribution to District Mineral Foundation (DMF). Such a significant additional outgo can potentially make several low grade and deeper deposits economically unviable and may necessitate strategic review of some of the mines. We are therefore hopeful that the government will rationalise the contribution to DMF in its notification. Forward on Long-Term Objectives Maintaining a balance between production, reserve growth and dividends is paramount to us. Our disciplined approach to improve efficiency and productivity is the key for delivering growth year after year. During the year, the Board of Directors decided to extend the life of the open cast mine, which will ensure that our overall production will continue to grow over the next few years. The simultaneous operation of open cast and underground mines at Rampura Agucha is a challenge for which we are well prepared. We are pleased with the ramp-up of Sindesar Khurd and Kayad mines, as also the enhanced performance of our smelting and refining facilities. In the last few years, we have laid the foundation for future growth. Our track record for successful and timely project deliveries gives us the experience and platform to deliver industry-leading performance. Our strategy to eventually mine from shafts at Rampura Agucha and Sindesar Khurd will bring down the mining cost in the medium term. The approach has already begun to show positive signs and we are well on our way to achieve our target of 1.2 million MT output in the next 3-4 years. The increase in our dividend pay-out ratio in recent years is reflective of our confidence in the growth of our business. Forward on Sustainability Since the inception of our programme for safety culture transformation in 2013, there has been a step change in our behaviour towards safety. From being reactive to incidents, we are creating a safety environment which is more interdependent and self-sustaining. We have created an organisation where ensuring safety is the responsibility of line managers. All leaders conduct safety interactions to recognise and reinforce positive behaviour. Specifically, a lot of awareness has been created for reporting unsafe acts and conditions in a bid to prevent untoward incidents. The total recorded injuries continued the downtrend and reduced by 27% during the year. However, I regret to report that we had two fatalities during the year. Over the next few years, our focus will be on reducing waste, generating value from residues and reducing carbon footprint. Forward on Social Initiatives We believe in becoming an integral part of the communities residing in the vicinity of our operations. Our CSR programmes focus on addressing such local needs that generate immediate as well long-term benefits for the society. Health, education, sanitation, sustainable livelihood, women empowerment and community assets creation are the priority areas for our CSR initiatives. We have aligned our project ''Maryadaa'', with the Prime Minister''s vision of ''Swachh Bharat'' (Clean India) under which we have already constructed over 11,000 toilets. We have signed MoUs with government departments and also joined hands with various local bodies and NGOs to ensure higher degree of effectiveness of such projects. During the year, Hindustan Zinc invested Rs.59.28 Crore in various CSR initiatives which are active across 184 villages, and benefitting over 500,000 people. The years ahead will have great challenges, but the rewards will also be great. In the new era of Hindustan Zinc, we are committed to uphold our worthy legacy for future generations of stakeholders and take our place in the global arena as a prominent enterprise in the zinc industry. On behalf of Hindustan Zinc team, I thank all our stakeholders for their continual support. With Warm Regards Agnivesh Agarwal Chairman