Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Q3 FY24 Earnings Presentation
40 slides from Hindustan Zinc's earnings presentation, Jan 20, 2024
Slide 1: Exchange filing cover letter
HZL/2024-SECY/ January 19, 2024 BSE Limited National Stock Exchange of India Limited 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
Slide 2: Results for the Third Quarter and Nine Months Ended December 31, 2023
Hindustan Zinc Limited Results for the Third Quarter and Nine Months Ended December 31, 2023 “PAT at INR 2,028 Cr, up 17% q-o-q on the back of consistent volume growth & cost reduction.” Key Highlights : ▪ Ranked highest globally in S&P Sustainability Assessment in Metals and Mining sector ▪ Quarter
Slide 3: Financial Summary Standalone
Financial Summary Standalone INR. Crore or as stated 2024 2023 9M Particulars Q3 Q2 Change Q3 Change 2024 2023 Change Sales1 Zinc 4,502 4,034 12% 5,631 -20% 13,204 18,319 -28% Lead 1,038 1,117 -7% 884 17% 3,115 2,863 9% Silver 1,413 1,297 9% 983 44% 4,008 3,171 26% Others 357 344 4% 368 -3% 1,057 1,
Slide 4: Financial Summary Consolidated
Financial Summary Consolidated INR. Crore or as stated 2024 2023 9M Particulars Q3 Q2 Change Q3 Change 2024 2023 Change Sales1 Zinc 4,502 4,033 12% 5,631 -20% 13,203 18,319 -28% Lead 1,038 1,117 -7% 884 17% 3,115 2,863 9% Silver 1,413 1,297 9% 983 44% 4,008 3,171 26% Others 357 344 4% 368 -3% 1,057
Slide 5: Operational Performance and Financial Performance
Operational Performance Mined metal production for the quarter was 271 kt, up 8% sequentially and 7% y-o-y, driven by higher ore production at Rampura Agucha and Sindesar Khurd mines, further supplemented by improved mined metal grades year on year. 9M FY24 mined metal production stood at 780 kt, up
Slide 6: Projects Update and ESG Update
Projects Update • Fumer and alloy plant are currently under operations, post their commissioning in the last quarter. Full ramp up targeted in Q4 FY24 • New Roaster at Debari of 160 ktpa and Hindustan Zinc Fertilisers Private Limited (HZFPL) of 510 ktpa: progress for main process package is on track
Slide 7: For further information, please contact; About Hindustan Zinc
For further information, please contact: Jhalak Rastogi Maitreyee Sankhla Associate Director - Investor Relations Interim Head - Corporate Communications jhalak.rastogi2@vedanta.co.in maitreyee.sankhla@vedanta.co.in +91 8287262850 +91 7742161333 Rahul Challa Team Member - Investor Relations hzl.ir@v
Slide 8: Hindustan Zinc Limited Investor Presentation Q3 FY24
HINDUSTAN ZINC LIMITED Investor Presentation January 2024 Q3 FY24 Earnings Presentation HINDUSTAN ZINC LIMITED – Q3 FY24 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 9: 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 10: Unique Positioning in Metal & Mining Landscape
Unique Positioning in Metal & Mining Landscape India’s largest & only 5th largest integrated producer of silver producer zinc, lead and silver globally World’s 2nd largest integrated zinc producer, with the lowest cost World’s Largest underground (UG) zinc mining structure & in the first decile of o
Slide 11: Q3 FY24 Robust Performance Rooted by Strategy, Cost Optimization and ESG Excellence
Q3 FY24 Robust Performance Rooted by Strategy, Sustained Cost Optimization and ESG Excellence Sustainability Operational Financial ▪ in ▪ ▪ EBITDA of c.INR 3.6k Cr & S&P Corporate Sustainability (compounded annual PAT of c.INR 2.0k Cr, up Assessment 2023 in metals and production growth rate) of 17%
Slide 12: Sustainability Update
SUSTAINABILITY UPDATE
Slide 13: 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 14: Sustainability Excellence: Leading in S&P Global CSA
Sustainability Excellence : Leading in S&P Global CSA Hindustan Zinc scored highest in Metals and Mining Sector in S&P Global Corporate Sustainability Overall Assessment (CSA) among 238 companies, advancing from 7th to the highest in last 6 years. Significant CSA Score improvement in scores of Envir
Slide 15: Sustainability in Action: Advancing Swiftly Towards Decarbonization
Sustainability in Action : Advancing Swiftly Towards Decarbonization More EVs to the fleet Powering with LNG • Established a collaborative • In previous quarter, HZL signed an partnership for deployment of 10 EV MoU for deployment of 180 Trucks, each boasting a capacity of Liquified Natural Gas (LNG
Slide 16: Sustainability in Action: Renewable Power Update
Sustainability in Action : Renewable Power Update Hindustan Zinc entered into Power Delivery Agreements (PDA) with Serentica Renewable India Private Ltd (SRIPL4 and SRIPL5) for Dariba (200 MW) and Chanderiya (250 MW) plant locations respectively. SRIPL4 & SRIPL5 are part of Serentica group which is
Slide 17: Key Priorities: Sustainability Goals 2025
Key Priorities: Sustainability Goals 2025 Progress Major Actions GHG intensity (Scope 1 + 2)/MT • PDA signed for 450 MW Renewable Energy (work initiated) Climate • 100% RE power consumption at Pantnagar Metal Plant Change 5.44 5.15 4.97 4.66 • Use of biomass in power plant 4.44 • Energy efficiency p
Slide 18: Key Priorities: Sustainability Goals 2025
Key Priorities: Sustainability Goals 2025 Progress Major Actions 5 Quarters of zero fatalities • Critical Risk Management (CRM) implementation for 8 high risks Zero Harm 7 • Suraksha Kavach implementation - Phase 1 mining • Fatality CAPA assurance program 4 • High risk SOP audit 2 0 0 • Safety Pause
Slide 19: 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 getting closer to our target through various safety initiatives, reiterating the #SafetyFirst culture. TRIFR (number per Mn hours worked) 2.67 Developmen
Slide 20: Key Priorities: Communities
Key Priorities: Communities Sustainable Livelihood Sports Women Empowerment ▪ Successful placements of 10 female ▪ ZFA bestowed with Elite 3-star rating by AIFF unarmed security guard trainees, 3 ▪ 3-day Uthori training to spread awareness ▪ 2 ZFA players represented Rajasthan & on gender-related is
Slide 21: Operational Review & Business Update
OPERATIONAL REVIEW & BUSINESS UPDATE Mr. Arun Misra CEO HZL
Slide 22: Market Update
Market Update ▪ Chinese government invested additional funds Zinc ($/T) Lead ($/T) Silver prices ($/toz) towards spend on infrastructure, boosting investor confidence. US economy is also strengthening, 30.0 3,271 3,124 3,001 driven by customer spend and service sector. The 24.1 23.6 23.2 25.0 22.5 2
Slide 23: Operational Highlights: Highest-ever 9M Mined Metal & Silver production
Operational Highlights : Highest-ever 9M Mined Metal & Silver production Mined Metal Refined Metal Saleable Silver 9M FY24 9M FY24 9M FY24 780 kt 760 kt 556 MT (up 2% y-o-y) (flat y-o-y) (up 5% y-o-y) Q3 FY24 Q3 FY24 Q3 FY24 271 kt 259 kt 197 MT (up 8% q-o-q, (up 7% q-o-q, (up 9% q-o-q, up 7% y-o-y)
Slide 24: Charting Success: A 5-year Showcase of Performance
Charting Success : A 5-year Showcase of Performance Mined Metal (kt) Refined Metal (kt) Silver (MT) 1200 1100 760 1029 739 1050 1023 740 1100 CAGR: 4.3% 1081 CAGR: 4.1% CAGR: 3.9% 1056 1000 963 720 1010 950 693 1000 895 700 688 933 900 876 913 680 670 900 850 YoY: 6.5% YoY: 0.6% 660 YoY: 2.3% 800 80
Slide 25: Operational Review
Operational Review Q3 FY24 9M FY24 • Mined metal up by 8% q-o-q and 7% y-o-y, driven by a mix of improved • Highest-ever nine months mined metal production, up 2% y-o-y, on mined metal grades and higher ore production at Rampura Agucha and account of improved mined metal grades Sindesar Khurd mines
Slide 26: 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 27: HZL Silver Growth Chronicle
HZL Silver Growth Chronicle Growth: Silver production grew over 2x in last 10 years and 15x in 2 decades. With FY24 guidance of 725-750 MT, the production will increase by c.3% y-o-y Global Leadership: HZL is India’s only silver producer and the 5th largest producer globally 725-750 Silver Productio
Slide 28: Financial Review
FINANCIAL REVIEW Mr. Sandeep Modi CFO HZL
Slide 29: Financial Highlights
Financial Highlights (All figures in INR Cr unless stated otherwise) Revenue EBITDA Profit After Tax 9M FY24 Q3 FY24 9M FY24 Q3 FY24 9M FY24 Q3 FY24 21,383 7,310 10,040 3,559 5,721 2,028 (down 16% y-o-y) (up 8% q-o-q, (down 25% y-o-y) (up 14% q-o-q, (down 28% y-o-y) (up 17% q-o-q, down 7% y-o-y) dow
Slide 30: Consolidated Financial Review
Consolidated Financial Review Q3 FY24 9M FY24 • Revenue up 8% q-o-q on account of better zinc and silver volumes, • Revenue down 16% y-o-y, on account of significantly lower zinc LME, higher zinc prices and favorable Fx rates partly offset by lower lead lower zinc volumes and strategic hedging impac
Slide 31: Cost Resilience & Leadership
Cost Resilience & Leadership Sequential change in Zinc COP* ($/MT) Zinc COP* ($/MT) Q3 FY24 1,095 Q2 FY24 1,137 Q1 FY24 1,194 Q4 FY23 1,214 Q3 FY23 1,293 Q2 FY23 1,259 Q1 FY23 1,264 Q4 FY22 1,136 Q3 FY22 1,148 Q2 FY22 1,124 Q1 FY22 1,070 Key Highlights: ▪ Strong foot-hold in the of the global zinc m
Slide 32: Appendix
APPENDIX
Slide 33: EBITDA Bridge (9M FY24 vs 9M FY23)
EBITDA Bridge (9M FY24 vs 9M FY23) (All figures in INR Cr unless stated otherwise) *Inclusive of gains from Strategic Hedging in previous period Note: All financials are at consolidated level 26 HINDUSTAN ZINC LIMITED – Q3 FY24 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 34: EBITDA Bridge (Q3 FY24 vs Q3 FY23)
EBITDA Bridge (Q3 FY24 vs Q3 FY23) (All figures in INR Cr unless stated otherwise) *Inclusive of gains from Strategic Hedging in previous period Note: All financials are at consolidated level 27 HINDUSTAN ZINC LIMITED – Q3 FY24 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 35: EBITDA Bridge (Q3 FY24 vs Q2 FY24)
EBITDA Bridge (Q3 FY24 vs Q2 FY24) (All figures in INR Cr unless stated otherwise) Note: All financials are at consolidated level 28 HINDUSTAN ZINC LIMITED – Q3 FY24 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 36: Fundamental Growth Strategy: Maximising Shareholder Value
Fundamental Growth Strategy MAXIMISING SHAREHOLDER VALUE Expansion of Capacities Maintaining a Portfolio Expansion of Product Strengthen Cost Progressing towards of Mines with Long Life Leadership Portfolio through Sustainable Future • Expand mined metal Customer Centricity capacity (currently at •
Slide 37: Awards and Recognition - Q3 FY24
Awards and Recognition - Q3 FY24 ❖ Hindustan Zinc recognized for ‘Exceptional Commitment to Corporate Social Responsibility’ at 118th Annual Session, PHD Chamber of Commerce and Industry ❖ Pantnagar Metal Plant won 6 Gold Awards at the 9th QCFI Convention, Rudrapur Chapter, in two categories - Allie
Slide 38: Metal Prices and Exchange Rate trends
Metal Prices and Exchange Rate trends Zinc Prices ($/t): Impacted by macro-economic factors Lead Prices ($/t): Range bound in the last year $3,600 $2,400 $3,400 $2,200 $3,200 $2,000 $3,000 $1,800 $2,800 $1,600 $2,600 $2,400 $1,400 $2,200 $1,200 $2,000 $1,000 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23
Slide 39: Glossary & Notes
Glossary & Notes All India Football Federation Engineering, Procurement and Multiple Effective Evaporator Standard Operating Battery Electric Vehicle Construction Million Liters Per Day Procedure Compounded Annual Environment, Safety and Memorandum of Serentica Renewables Growth Rate Governance Unde
Slide 40: Thank You
THANK YOU HINDUSTAN ZINC LIMITED Yashad Bhawan, Udaipur-313 004, Rajasthan T: +91 294 6604000-02 www.hzlindia.com HINDUSTAN ZINC LIMITED – Q3 FY24 INVESTOR PRESENTATION Sensitivity: Internal (C3)