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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 27, 16:00
320.50 -6.10 (-1.87%)
Volume
AVERAGE VOLUME
5-Day
118,710
10-Day
97,151
30-Day
92,290
87,359
  • Prev. Close

    326.60

  • Open Price

    326.15

  • Bid Price (Qty.)

    319.40 (14)

  • Offer Price (Qty.)

    320.00 (132)

NSE Live

Jul 27, 15:59
320.45 -6.05 (-1.85%)
Volume
AVERAGE VOLUME
5-Day
1,524,453
10-Day
1,422,416
30-Day
1,172,638
820,843
  • Prev. Close

    326.50

  • Open Price

    328.15

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    320.45 (163)

Annual Report

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

Chairman's Speech

Dear Shareholders, At the onset, I am proud to be a part of Hindustan Zinc team that has created enormous value for its shareholders and public at large over the last decade and last fifty years. Despite a volatile commodity environment, several new regulatory headwinds and a challenging on-going transition to an underground mining company, the team delivered the best ever free cash flow in its history. Today, it is one of the largest zinc producing companies in the world. As your Company celebrated its Golden Jubilee this year, the Board of Directors declared a special dividend 1200% to its shareholders, which is the largest single dividend in India''s private sector and second largest in Indian corporate history. We will continue to demonstrate our commitment towards delivering value for our shareholders. Our unwavering focus on production growth is evident from our resolute performance which continued in FY 2016. While the market conditions remained challenging, we continued to report healthy financial performance with Rs, Rs, 6,655 Crore of EBITDA and Rs, 8,167 Crore of net profit for the year. We will maintain our operational growth over the next few years as we execute the next phase of growth, which will enhance our global market share in zinc, lead and silver. The zinc market was not immune to the volatility of global commodities markets. Zinc prices collapsed to the level of $1,500-$1,600 per MT for a period of nearly three months before regaining ground towards end of the year. The demand for zinc was steady during the year, as emerging economies led the growth in metal consumption, though at a slower pace, while demand in developed economies of USA and some European countries was better than what we had expected. At the same, significant tightness in mine supply is anticipated with the closure of certain high profile mines as well as production cuts owing to difficult commodity environment. Our strategy to tide over the current commodity market challenges has been to increase production, control costs, maintain our domestic market share and increase our presence in our focus regions of emerging markets. I am happy to report that we delivered record mined metal and integrated metal production during the year, reduced cost of production, enhanced efficiencies, improved the productivity of our mines and smelters, as well as accelerated mine development across our expansion projects. We are committed to increase our reserve & resource base by continuous exploration and adding more than we deplete to maintain a mine-life of 25 years. We are fortunate to be in a resource rich country, which is still largely unexplored. It will be our endeavour to create an offshoot of the ''Make in India'' programme to ''Mine in India'' programme, taking our exploration programme well beyond the boundaries of our mining leases and the mineral rich Rajasthan. We will develop our existing tenements and also participate in select auctions, leveraging the era of transparent and investor friendly mining policies now in vogue. During the year, we revisited some parts of our current phase of expansion and made certain adjustments in the mine plan based on the current environment and geo- technical conditions of the rock, ensuring that our road map to increase our zinc-lead mined metal production capacity to 1.2 million MT annually is not compromised, despite the vacuum created by volume reduction from our flagship open pit mine. We have the confidence to march ahead with our plans as our mining projects are low-risk and we are expanding at our existing locations where we have adequate land, ore bodies are well-explored and regulatory clearances are largely in place. The mine expansions are being undertaken using best-in-class technology and equipment that will accelerate the pace of ramp-ups and make us the benchmark in the country and in the years ahead, globally. Our efforts towards sustainability and governance were recognised by leading organisations. During FY 2016, we were awarded CII ITC Corporate Excellence - Outstanding Accomplishment and significantly reduced total recorded injuries. Despite our best efforts towards safety, I regret to report that we had four fatalities during the year in our operations. We have tightened our review system and safety practices towards hazard identification and near- misses to achieve our target of zero harm, we are focusing on culture change at grass-root level. Going beyond business, we have made sustainable efforts to uplift rural communities in the vicinity of our operations. In FY 2016, we invested over Rs, 63 Crore in our social programmes, and plan to increase it in the coming years. We focus on providing education to children, vocational training for sustainable livelihood, promoting women empowerment, organising health and medical camps, providing water and sanitation facilities, encouraging sports and culture, environment preservation, and community development among others. These programmes are bringing significant changes in the lives of over 500,000 rural people in Rajasthan. Overall, the stage is set for sustainable growth in future and with sustainability as the centre stone of our operations, I am confident that going forward team Hindustan Zinc will continue to move ahead and outperform expectations, while continuing to create value for all our stakeholders. Warm Regards, Agnivesh Agarwal Chairman