Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Q2 FY25 Earnings Presentation
33 slides from Hindustan Zinc's earnings presentation, Oct 18, 2024
Slide 1: Exchange filing cover letter: Outcome of Board meeting
HZL/2024-25/SECY/122 October 18, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Plot No., C/l, G Block Dalal Street, Fort Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Kind Attn: General Manager – Department Kind
Slide 2: Hindustan Zinc Limited Earnings Presentation Q2 FY25
HINDUSTAN ZINC LIMITED Earnings Presentation Q2 FY25 HINDUSTAN ZINC LIMITED – Q2 FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)
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: Unique Positioning in Metal & Mining Landscape
Unique Positioning in Metal & Mining Landscape India’s largest & only 3rd largest integrated producer of silver producer globally and zinc, lead and silver India’s only listed integrated precious metal company World’s 2nd largest integrated zinc producer, with the lowest cost World’s largest UG zinc
Slide 5: Excelling in Performance, Strengthening with Partnerships
Excelling in Performance, Strengthening with Partnerships Sustainability Operational Financial ▪ Board approved round-the-clock PDA ▪ Recorded highest-ever second quarter ▪ Revenue for the quarter stood at c.INR III with Serentica, taking the RE mined and refined metal production 8.3k Cr, up 22% y-o
Slide 6: Sustainability Update
SUSTAINABILITY UPDATE
Slide 7: Sustainability Goals 2025
Sustainability Goals 2025 Water Stewardship Biodiversity Climate Change Circular Economy 0.5 mn tCO2e GHG 5x water positive 3x increase in gainful Conservation emission savings company and 25% utilisation of smelting Protect and enhance from base year reduction in freshwater process waste biodiversi
Slide 8: Towards a Better Tomorrow
Towards a Better Tomorrow Foraying into Zinc-based Batteries Partnership with JNCASR Other Key Highlights • Signed an MoU with Jawaharlal Nehru Centre for • Multiple meetings with leading battery Advanced Scientific Research (JNCASR), a premier manufactures in India along with AEsir institute sponso
Slide 9: Towards a Better Tomorrow
Towards a Better Tomorrow Hindustan Zinc had entered into Power Delivery Agreements (PDA) with Serentica Renewable India Private Ltd, which is developing ~4GW of Renewable Energy across multiple states to provide round-the-clock power to industries. Salient Features of the Project New PDA III for 53
Slide 10: Key Priorities: Sustainability Goals 2025
Key Priorities: Sustainability Goals 2025 Progress Major Actions GHG intensity (Scope 1 + 2)/MT • 450 MW Renewable Energy - Phase-wise power consumption started 135 MU RE power from Climate Phase 1 consumed in H1FY25 Change 5.15 4.97 4.66 • 100% RE power consumption at Pantnagar Metal Plant 4.44 4.0
Slide 11: Key Priorities: Sustainability Goals 2025
Key Priorities: Sustainability Goals 2025 Progress Major Actions Fatalities • India’s first All Woman Mine Rescue Team won 2nd position in 13th International Mine 7 Rescue Competition, Columbia Zero Harm 4 • Suraksha Kavach implementation - Phase 1 mining 3 • Critical Risk Management (CRM) implement
Slide 12: Key Priorities: Safety
Key Priorities: Safety Safety is a key area of investment at Hindustan Zinc. ‘Zero Harm’ has been engraved in the values of the Company and we are Developments & Initiatives getting closer to our target through various safety initiatives, ▪ Established All Women Surface Rescue Safety Teams of 30 wom
Slide 13: Key Priorities: Communities
Key Priorities: Communities Skill Development Sports Education ▪ Zinc Kaushal Kayad sent over 25 CRM/BPO ▪ ZFA Defender led team India at the SAFF U- ▪ Over 10k classes conducted on science, trainees to Wellsure Ecomm Services for on- 17 Championship 2024 in Bhutan. ZFA Stiker english, and maths the
Slide 14: Key Priorities: Communities
Key Priorities: Communities Vedanta Zinc City Half Marathon Key Highlights • Vedanta Zinc City Half Marathon garnered over 5,200 participants, supporting for a noble cause of #RunForZeroHunger • Touted as India’s most beautiful marathon, it boasts one of the most scenic marathon trails in Udaipur •
Slide 15: Market Update & Operational Review
MARKET UPDATE & OPERATIONAL REVIEW Mr. Arun Misra CEO HZL
Slide 16: Market Update - Base Metal | Zinc & Lead
Market Update - Base Metal | Zinc & Lead Zinc prices ($/t) Lead prices ($/t) ▪ Buoyed up sentiments despite the prevailing geopolitical tensions, post a larger-than- 3076 2833 2779 2170 2167 expected rate cut by the US Fed and the policy 2117 2123 2077 2044 2071 2526 2429 2498 2450 support measures
Slide 17: Market Update - Precious Metal | Silver
Market Update - Precious Metal | Silver Forecast Silver Demand ▪ Higher Gold-Silver Ratio: There was a 20,353 22,110 disparity in the rally of precious metal prices 6,318 7,562 6,572 6,593 with gold boosting through a series of all- 1,717 1,830 840 812 379 time highs due to safe haven interest, whil
Slide 18: Operational Highlights: Highest-ever Q2 mined and refined metal
Operational Highlights : Highest-ever Q2 mined and refined metal Mined Metal Refined Metal Saleable Silver H1 FY25 H1 FY25 H1 FY25 519 kt 524 kt 350 MT (up 2% y-o-y) (up 5% y-o-y) (down 3% y-o-y) Q2 FY25 Q2 FY25 Q2 FY25 256 kt 262 kt 184 MT (up 2% y-o-y, (up 8% y-o-y, (up 2% y-o-y, down 2% q-o-q) fl
Slide 19: Industry Leading Production CAGR of c.5%
Industry Leading Production CAGR of c.5% Mined Metal (kt) Refined Metal (kt) Silver (MT) 746 750-775 1062 1079 1100-1125 1075-1100 706 714 1017 1032 1033 647 972 967 610 917 930 870 FY20 FY21 FY22 FY23 FY24 FY25E FY20 FY21 FY22 FY23 FY24 FY25E FY20 FY21 FY22 FY23 FY24 FY25E Note: FY25E production is
Slide 20: Operational Review - Base Metal | Zinc & Lead
Operational Review - Base Metal | Zinc & Lead Q2 FY25 H1 FY25 • Highest ever Q2 mined metal production of 256 kt, up 2% y-o-y on account • Highest ever H1 mined metal production of 519 kt, up 2% y- of higher ore production at Zawar Mine partly offset by lower mined metal o-y on account of higher ore
Slide 21: Operational Review - Precious Metal | Silver
Operational Review - Precious Metal | Silver Operational Performance Silver Growth Chronicle Q2 FY25 HZL is India’s only silver producer and the 3rd largest silver producer globally (from 23rd rank 10 years ago). Silver production grew from mere • Saleable silver production was 184 MT, up 2% y-o-y.
Slide 22: Project Update
Project Update New Roaster at Debari: Hindustan Zinc Fertilizers Private Limited: Roasting is an essential part of the process of producing Hindustan Zinc’s DAP/NPK Fertilizer Plant at Chanderiya aims to saleable zinc in hydrometallurgical smelters. support farmers’ needs through production and sale
Slide 23: Financial Review
FINANCIAL REVIEW Mr. Sandeep Modi CFO HZL
Slide 24: Financial Highlights
Financial Highlights (All figures in INR Cr unless stated otherwise) Revenue EBITDA Profit After Tax1 H1 FY25 Q2 FY25 H1 FY25 Q2 FY25 H1 FY25 Q2 FY25 16,382 8,252 8,109 4,164 4,734 2,389 (up 16% y-o-y) (up 22% y-o-y, (up 25% y-o-y) (up 33% y-o-y, (up 28% y-o-y) (up 38% y-o-y, up 2% q-o-q) up 6% q-o-
Slide 25: Consolidated Financial Review
Consolidated Financial Review Q2 FY25 H1 FY25 • Revenue up 22% y-o-y on account of better metal & silver volumes and zinc & • Revenue up 16% y-o-y on account of better metal silver prices, further supported by a strong dollar and marginally offset by lower volumes and zinc & silver prices, further s
Slide 26: Appendix
APPENDIX
Slide 27: EBITDA Bridge (Q2 FY25 vs Q2 FY24)
EBITDA Bridge (Q2 FY25 vs Q2 FY24) (All figures in INR Cr unless stated otherwise) 22 2 2 ri es Ad BI A olume ost ar e ng & others 2 2 Note: All financials are at consolidated level 26 HINDUSTAN ZINC LIMITED – Q2 FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 28: EBITDA Bridge (Q2 FY25 vs Q1 FY25)
EBITDA Bridge (Q2 FY25 vs Q1 FY25) (All figures in INR Cr unless stated otherwise) 22 2 2 2 ri es Ad BI A olume ost ar e ng & others 2 2 Note: All financials are at consolidated level 27 HINDUSTAN ZINC LIMITED – Q2 FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 29: EBITDA Bridge (H1 FY25 vs H1 FY24)
EBITDA Bridge (H1 FY25 vs H1 FY24) (All figures in INR Cr unless stated otherwise) 2 8,000 ,000 6,000 5,000 4,000 3,000 2,000 1,000 2 ri es Ad BI A olume ost ar e ng & others 2 Note: All financials are at consolidated level 28 HINDUSTAN ZINC LIMITED – Q2 FY25 INVESTOR PRESENTATION Sensitivity: Inter
Slide 30: 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 Leadership of Mines with Long Life Portfolio through Sustainable Future • Expand mined metal Customer Centricity capacity (currently at •
Slide 31: Awards and Recognition – Q2 FY25
Awards and Recognition – Q2 FY25 ❖ Hindustan Zinc received the KPMG India ESG Excellence Award 2024 at ESG Conclave and Awards 2024 for its enduring commitment towards sustainable practices ❖ The Company received 4th Rank in the BW Businessworld’s Sustainability Awards for leading the sustainability
Slide 32: Glossary
Glossary AIFF - All India Football Federation ESG - Environment, Safety and LNG - Liquified Natural Gas SDM - Sub-divisional Magistrate BEV - Battery Electric Vehicle Governance MEE - Multiple Effective Evaporator SHFE - Shanghai Futures Exchange BPO - Business Process Outsourcing ETP - Effluent Tre
Slide 33: Thank You
THANK YOU HINDUSTAN ZINC LIMITED Yashad Bhawan, Udaipur-313 004, Rajasthan T: +91 294 6604000-02 www.hzlindia.com HINDUSTAN ZINC LIMITED – Q2 FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)