Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Q4 FY23 Earnings Presentation
29 slides from Hindustan Zinc's earnings presentation, Apr 21, 2023
Slide 1: Exchange filing cover letter
HZL/2023-SECY/ April 21, 2023 BSE Limited National Stock Exchange of (India) Ltd. P.J. Towers, Dalal Street, “Exchange Plaza” Mumbai - 400001 Bandra-Kurla Complex, Mumbai – 400051 Kind Attn: - General Manager, Kind Attn:- Head - Listing & Corporate Dept. of Corporate Services Communications Scrip Co
Slide 2: Q4 FY23 Earnings Presentation
HINDUSTAN ZINC LIMITED INVESTOR PRESENTATION April 2023 Q4 FY23 Earnings Presentation
Slide 3: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness, or reliability of this information. Any forw
Slide 4: Glorious Journey of 56 years
Glorious Journey of 56 years • Sterlite Group • HZL shared a Special • Ranked #1 in the Metals and Mining • Sindesar Khurd Mine • Rajpura Dariba Hydro - category in Asia Pacific in the Dow Jones (now known as dividend of 1200% • Foundation of • Rajpura Dariba commissioned with III zinc smelter Susta
Slide 5: Revitalization of HZL: Two decades of progressive development
Revitalization of HZL : Two decades of progressive development Revenue grew Value creation over 22X • Refined metal increased • Profit increased from from 235 kt to 1,032 kt INR 142 Cr to INR • EPS grew from INR 3.36 10,511 Cr to INR 24.88 • Dividend yield increased Mined metal over 5 times from c.5
Slide 6: Revitalization of HZL: Two decades of sustainable development
Revitalization of HZL : Two decades of sustainable development Sustainable Responsible development Corporate Citizen • CSR spent increased • Sewage Treatment Plant Digital collaborations in • Endorsements of our over 89X from c.INR 3 capacity increased 300X past 2 decades: sustainable Cr to c.INR 27
Slide 7: FY23 Highlights
FY23 Highlights Operational Financial ESG • Strong operating performance - Refined metal • Record revenue of c.INR 34k Cr, up 16% YoY • Power Delivery Agreement signed for exceeded guidance crossing 1 million tonne • Record high EBITDA of c.INR 18k Cr & PAT of 450MW RE power • Highest ever productio
Slide 8: Innovation & Digitalization driving efficiency
Innovation & Digitalization driving efficiency Smoke Hours Drilling Deployment of Advanced HEMM Idle Time Reduction Process Control at Mills Additional production drilling by Advanced Process Control (APC) To reduce the dependency on manual utilizing automation features & tele- ensuring consistent &
Slide 9: Strengthening Reserves & Resources (R&R)
Strengthening Reserves & Resources (R&R) Strategic focus remains on increasing the longevity of our mines to drive future growth & value. As of Mar’23, our Total Ore Reserves stands at 173.5 Mt (net of production of 16.7 Mt in FY23), as against 161.2 Mt at the end of FY22 led by continued focus on r
Slide 10: Fundamental Growth Strategy: Maximising Shareholder Value
Fundamental Growth Strategy MAXIMISING SHAREHOLDER VALUE Expansion of Capacities Maintaining a Portfolio Strengthen Cost Expansion of Product Progressing towards of Mines with Long Life Leadership Portfolio through Sustainable Future • Expand mined metal Customer Centricity capacity (currently at •
Slide 11: Key Priorities: Sustainability Goals 2025
Key Priorities: Sustainability Goals 2025 Sustainability Goal 2025 Progress Major Actions • Green power: 450MW Renewable Energy Climate ▪ 0.5MN tCO2e GHG emission GHG intensity (Scope 1 + 2)/ MT • 100% RE power consumption at Pantnagar Metal Plant Change savings in our operations from • Turbine Reva
Slide 12: Key Priorities: Sustainability Goals 2025
Key Priorities: Sustainability Goals 2025 Sustainability Goal 2025 Progress Major Actions • Critical Risk Management / FSIPP (Fatality & Serious Injury Prevention ▪ Zero work-related fatalities and 7 Fatalities Programme) Zero Harm 50% reduction in TRIFR TRIFR • Community of practice: structural int
Slide 13: Key Priorities: Communities
Key Priorities: Communities Skill Development Sports Women Empowerment Culture ▪ Zinc Kaushal Kendra, Dariba ▪ Zinc Football academy (ZFA) bagged ▪ Sakhi Utpadan Samiti earned ▪ Promoting local ethnicity & initiated & trained its 1st female 2nd in Khelo India Under-17 girls total income of INR 10.86
Slide 14: Operational Review & Business Update
OPERATIONAL REVIEW & BUSINESS UPDATE Mr. Arun Misra CEO HZL
Slide 15: Market Update
Market Update Macro Environment - Demand Drivers Global Supply Situation • Key macro factors likely to impact demand: • Following the drop in European energy prices, smelters in Europe o Banking crisis overhang in the US are returning to production o Pace of China’s economic recovery post pandemic o
Slide 16: Operational Highlights: Historic high production
Operational Highlights : Historic high production FY23 1,062 kt 1,032 kt 714 MT (up 4% y-o-y) (up 7% y-o-y) (up 10% y-o-y) Mined Metal Refined Metal Saleable Silver Q4 FY23 301 kt 269 kt 182 MT (up 2% y-o-y) (up 3% y-o-y) (up 13% y-o-y) Mined Metal Refined Metal Saleable Silver 15 HINDUSTAN ZINC LIM
Slide 17: Operational Review
Operational Review Q4 FY23 FY23 • Mined metal up 2% y-o-y; led by higher ore production & improved • Highest-ever FY mined metal, up 4% y-o-y; owing to higher ore ore grade production, improved mined metal grades & operational efficiencies • Refined metal up 3% y-o-y; led by better plant & MIC avail
Slide 18: Project Update
Project Update Hindustan Zinc Alloys Private Limited (HZAPL) - All mechanical installations of Line 1 completed. Remaining plant installation followed by overall plant commissioning expected by mid Q1 FY24 Rajpura Dariba Mill - Entire engineering & supply completed with construction works in advance
Slide 19: Financial Review
FINANCIAL REVIEW Mr. Sandeep Modi CFO HZL
Slide 20: Financial Snapshot: Historic high Revenue, EBITDA, PAT
Financial Snapshot : Historic high Revenue, EBITDA, PAT (All figures in INR Cr unless stated otherwise) Revenue EBITDA Profit After Tax Q4 FY23 FY23 Q4 FY23 FY23 Q4 FY23 FY23 8,509 34,098 4,208 17,590 2,583 10,511 (down 3% y-o-y) (up 16% y-o-y) (down 16% y-o-y) (up 8% y-o-y) (down 12% y-o-y) (up 9%
Slide 21: Consolidated Financial Review
Consolidated Financial Review Q4 FY23 FY23 • Revenue down 3% y-o-y; due to lower metal & silver prices partly • Revenue up 16% y-o-y; led by improved zinc prices & volumes, strategic offset by higher volumes and favourable Fx rates hedging gains, favourable Fx rates and better lead & silver volumes
Slide 22: Outlook for FY24
Outlook for FY24 Mined Metal Production (kt) 1,075 - 1,100 Refined Metal Production (kt) 1,050 - 1,075 Saleable Silver Production (MT) 725 - 750 Zinc COP ($/T) 1,125 - 1,175 Project Capex ($Mn) 175 - 200 21 HINDUSTAN ZINC LIMITED - Q4 FY23 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 23: Appendix
HINDUSTAN ZINC x Qa 2 Ww a a q A= =
Slide 24: EBITDA Bridge (FY23 vs. FY22)
EBITDA Bridge (FY23 vs. FY22) (All figures in INR Cr unless stated otherwise) *Inclusive of gains from Strategic Hedging ^Inclusive of input commodity inflation Note: All financials are at consolidated level 23 HINDUSTAN ZINC LIMITED - Q4 FY23 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 25: EBITDA Bridge (Q4 FY23 vs. Q4 FY22)
EBITDA Bridge (Q4 FY23 vs. Q4 FY22) (All figures in INR Cr unless stated otherwise) *Inclusive of gains from Strategic Hedging ^Inclusive of input commodity inflation Note: All financials are at consolidated level 24 HINDUSTAN ZINC LIMITED - Q4 FY23 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 26: EBITDA Bridge (Q4 FY23 vs. Q3 FY23)
EBITDA Bridge (Q4 FY23 vs. Q3 FY23) (All figures in INR Cr unless stated otherwise) *Inclusive of gains from Strategic Hedging ^Inclusive of input commodity inflation Note: All financials are at consolidated level 25 HINDUSTAN ZINC LIMITED - Q4 FY23 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 27: Awards and Recognition - Q4 FY23
Awards and Recognition - Q4 FY23 ❖ Hindustan Zinc included in Sustainability Yearbook 2023 for 6th year in a row, amongst the top 5% most sustainable organizations ❖ Recognized with ‘A’ score for Transparency on Climate Change ❖ Hindustan Zinc recognized as Supplier Engagement Leader by CDP ❖ Four M
Slide 28: Metal Prices and Exchange Rate trends
Metal Prices and Exchange Rate trends Zinc Prices ($/t): Impacted by macro economic factors Lead Prices ($/t): Volatile during FY23 4,750 2,750 4,500 2,500 4,250 4,000 2,250 3,750 3,500 2,000 3,250 1,750 3,000 2,750 1,500 2,500 1,250 2,250 2,000 1,000 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22
Slide 29: Thank You
SS 1 HINDUSTAN ZINC Svedanta | eg as THANK YOU