Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Q1 FY25 Earnings Presentation
38 slides from Hindustan Zinc's earnings presentation, Aug 2, 2024
Slide 1: Exchange cover letter: outcome of Board meeting
HZL/2024-25/SECY/67 August 02, 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 A
Slide 2: Results for the First Quarter Ended June 30, 2024
Hindustan Zinc Limited Results for the First Quarter Ended June 30, 2024 “PAT surged to INR 2,345 Cr, up 19% y-o-y on the back of record first quarter metal production and market tailwinds” “Recycling and Silver businesses to unlock significant value” Key Highlights: ▪ Clocked highest-ever first qua
Slide 3: CFO commentary
Mr. Sandeep Modi, CFO, said: “Ascertaining HZL’s global cost leadership, we have supressed the cost of production for the quarter at $1,107 per tonne, clocking a figure lower than last three financial years. With a holistic focus on operational cum financial excellence, we expanded the margins durin
Slide 4: Financial Summary Consolidated
Continued… Hindustan Zinc Limited’s consolidated financial statements are detailed below, to be read along with the Company’s Investor Presentation, which is accessible at the end of this release. Financial Summary Consolidated INR. Crore or as stated Q1 Q4 Particulars 2025 2024 Change 2024 Change S
Slide 5: Operational and Financial Performance
Operational Performance Mined metal production for the quarter was 263 kt, recording the highest ever first quarter production. It is up 2% y-o-y on account of improved mined metal grades, and lower 12% q-o-q in line with mine preparation activities being carried out every year in first quarter. Ref
Slide 6: Robust Free Cash Flow Generation
• The Company signed an MoU with VEXL Environ Projects to establish a pilot plant for utilizing waste streams like jarosite and jarofix to recover metals/chemicals as saleable products • Hindustan Zinc entered into a partnership with AEsir Technologies to innovate the battery storage space through N
Slide 7: Contact and About Hindustan Zinc
For further information, please contact: Kritika Mehta Sonal Choithani Investor Relations Chief Brand & Communications Officer Kritika.mehta@vedanta.co.in sonal.choithani@vedanta.co.in +91 9116056880 +91 9910602549 Rahul Challa Deputy Manager - Investor Relations hzl.ir@vedanta.co.in About Hindustan
Slide 8: Earnings Presentation Q1 FY25
HINDUSTAN ZINC LIMITED Earnings Presentation Q1 FY25 HINDUSTAN ZINC LIMITED – Q1 FY25 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 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 11: Shareholder's Value Creation
Shareholder’s Value Creation Hindustan Zinc is committed Hindustan towardshighest Zinc has delivered sustainable total value creation shareholder and delivery returns amongof value-accretive the returns to top Indian companies its shareholders during the quarterby employing agile strategies to strik
Slide 12: Defining the year ahead with Performance and Partnerships
Defining the year ahead with Performance and Partnerships Sustainability Operational Financial ▪ Commencement of the first flow of RE ▪ Launched Asia’s first low carbon ▪ Revenue for the quarter stood at power supply from Serentica 180 MW ‘green’ zinc, EcoZen c.INR 8.1k Cr, up 12% y-o-y on solar pro
Slide 13: Sustainability Update
SUSTAINABILITY UPDATE
Slide 14: Sustainability Goals 2025
Sustainability Goals 2025 Hindustan Zinc is included in top 500 sustainable companies list for 2024 by TIME’s magazine 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
Slide 15: Towards a Better Tomorrow: ESG Partnerships
Towards a Better Tomorrow Establishing ESG Partnerships Powering Recycling Business Enabling Energy Transition • Partnership with VEXL Environ Projects Ltd (VEXL) • Partnership with US-based AEsir Technologies as a for innovative solutions for utilization of jarosite and preferred supplier of zinc f
Slide 16: Towards a Better Tomorrow: EcoZen Green Zinc
Towards a Better Tomorrow Hindustan Zinc is committed Launchedtowards sustainable Asia’s first value Low Carbon creation ‘Green’ and Zinc deliveryproduced , EcoZen, of value-accretive returns energy using renewable to its shareholders by employing agile strategies to strike a balance between our ESG
Slide 17: Towards a Better Tomorrow: Renewable Power Agreements
Towards a Better Tomorrow Hindustan Zinc had entered into Power Delivery Agreements (PDA) with Serentica Renewable India Private Ltd (SRI4PL and SRI5PL) for Dariba (200 MW) and Chanderiya (250 MW) plant locations respectively. SRI4PL & SRI5PL are part of Serentica group which is developing ~4GW of R
Slide 18: 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 - Phase-wise power consumption started with Climate 34 MU RE power consumption in Q1 FY25 Change 5.15 4.97 • 100% RE power consumption at Pantnagar Metal Plant 4.4
Slide 19: Key Priorities: Sustainability Goals 2025
Key Priorities: Sustainability Goals 2025 Progress Major Actions Fatalities • Critical Risk Management (CRM) implementation for 11 high risks • Suraksha Kavach implementation Zero Harm 7 • Safety Pause - Right to Refuse Unsafe Work 4 • Community of Practice for Structural Integrity • Deployment of S
Slide 20: 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) Developments &
Slide 21: Key Priorities: Communities
Key Priorities: Communities Hindustan Zinc is listed as one of the top companies for CSR in India 2023 by “The CSR journal” Skill Development Sports Education ▪ Trained 129 youth (including 76 females) ▪ 4 ZFA U-15 players selected for FIFA-AIFF ▪ Month-long summer camps benefitting and 56 youth are
Slide 22: Operational Review & Business Update
OPERATIONAL REVIEW & BUSINESS UPDATE Mr. Arun Misra CEO HZL
Slide 23: Market Update
Market Update Zinc ($/t) Lead ($/t) Silver prices ($/toz) ▪ Base metal prices have traced copper, whose 3,124 2,833 role in global energy transition has carried the 28.8 2,526 2,498 2,450 2,429 momentum of the price rally throughout the 24.1 23.6 2,170 2,167 23.2 23.3 2,140 2,123 2,117 2,077 quarter
Slide 24: Operational Highlights: Highest-ever Q1 mined and refined metal
Operational Highlights : Highest-ever Q1 mined and refined metal Mined Metal Refined Metal Saleable Silver Q1 FY25 Q1 FY25 Q1 FY25 263 kt 262 kt 167 MT (up 2% y-o-y, (up 1% y-o-y, (down 7% y-o-y, down 12% q-o-q) down 4% q-o-q) down 12% q-o-q) Mined Metal (kt) Refined Metal (kt) Saleable Silver (MT)
Slide 25: Operational Review
Operational Review Q1 FY25 Zinc COP* ($/t) • Mined metal production up 2% y-o-y on account of improved mined metal grades, and down 12% q-o-q in line with the mine preparation activities being carried out every year in the first quarter FY 22 1,122 • Refined metal production up 1% y-o-y. It is down
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: Financial Review
FINANCIAL REVIEW Mr. Sandeep Modi CFO HZL
Slide 28: Setting Benchmarks in Reporting
Setting Benchmarks in Reporting A collage of several people Description automatically generated Integrated Annual Report Tax Transparency Report TNFD Report 2023-24 Digital Annual Report 2023-24 2023-24 2023-24 First TNFD Report ▪ Hindustan Zinc has set a benchmark in the Indian Metal & Mining indus
Slide 29: Financial Highlights
Financial Highlights (All figures in INR Cr unless stated otherwise) Revenue EBITDA Profit After Tax Q1 FY25 Q1 FY25 Q1 FY25 8,130 3,946 2,345 (up 12% y-o-y, (up 17% y-o-y, (up 19% y-o-y, up 8% q-o-q) up 8% q-o-q) up 15% q-o-q) Free Cash Flow EBITDA Margin Earnings Per Share from operations* Q1 FY25
Slide 30: Consolidated Financial Review
Consolidated Financial Review Q1 FY25 % Silver in Total Segment EBIT • Revenue up 12% y-o-y on account of metal & silver prices and better metal volume, supported by a strong dollar and partly offset 48 46 by lower silver volume. It is up 8% q-o-q on account of better 43 42 39 metal & silver prices,
Slide 31: Appendix
APPENDIX
Slide 32: EBITDA Bridge (Q1 FY25 vs Q1 FY24)
EBITDA Bridge (Q1 FY25 vs Q1 FY24) (All figures in INR Cr unless stated otherwise) Note: All financials are at consolidated level 25 HINDUSTAN ZINC LIMITED – Q1 FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 33: EBITDA Bridge (Q1 FY25 vs Q4 FY24)
EBITDA Bridge (Q1 FY25 vs Q4 FY24) (All figures in INR Cr unless stated otherwise) Note: All financials are at consolidated level 26 HINDUSTAN ZINC LIMITED – Q1 FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 34: 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 35: Awards and Recognition – Q1 FY25
Awards and Recognition – Q1 FY25 ❖ HZL has been honoured with two prestigious awards, ‘Best Risk Practice’ and ‘Masters of Risk in ESG’, in large cap category at the India Risk Management Awards by CNBC TV18 ❖ Hindustan Zinc won the prestigious PeopleFirst HR Excellence Awards in the categories of “
Slide 36: Metal Prices and Exchange Rate trends
Metal Prices and Exchange Rate trends Zinc Prices ($/t): Closely traced the copper prices Lead Prices ($/t): Remained volatile during the year $3,200 $2,400 $3,000 $2,200 $2,800 $2,000 $1,800 $2,600 $1,600 $2,400 $1,400 $2,200 $1,200 $2,000 $1,000 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jan-24 Feb
Slide 37: Glossary
Glossary Adj. - Adjusted ESG - Environment, Safety and kt – Kilotonnes QCFI – Quality Circle Forum of India AIFF - All India Football Federation Governance ktpa - Kilotonnes per annum Q-o-q - Quarter-on-quarter BEV - Battery Electric Vehicle ETP - Effluent Treatment Plant LME - London Metal Exchange
Slide 38: Thank You
THANK YOU HINDUSTAN ZINC LIMITED Yashad Bhawan, Udaipur-313 004, Rajasthan T: +91 294 6604000-02 www.hzlindia.com HINDUSTAN ZINC LIMITED – Q1 FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)