Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Q4 FY2024 Earnings Presentation
46 slides from Hindustan Zinc's earnings presentation, Apr 20, 2024
Slide 1: Exchange filing cover letter: Outcome of Board meeting
HZL/2024-25/SECY/17 April 19, 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 At
Slide 2: Results for the Fourth Quarter and Full Year Ended March 31, 2024
Hindustan Zinc Limited Results for the Fourth Quarter and Full Year Ended March 31, 2024 “Record annual silver & metal production with strong cost resilience amidst lower zinc prices; PAT at INR 7,759 Crore.” Key Highlights : ▪ Hindustan Zinc is now the 3rd largest silver producer globally, with hig
Slide 3: CFO commentary on margins and cost reduction
Mr. Sandeep Modi, CFO, said: “Despite the plunging metal prices, HZL has consistently sustained its margin at a steady 47% by recording its fifth consecutive quarter of sustained cost reduction, clocking the lowest cost in last 3 years. This demonstrates the effectiveness of our agile decision-makin
Slide 4: Financial Summary Standalone
Financial Summary Standalone INR. Crore or as stated 2024 2023 FY Particulars Q4 Q3 Change Q4 Change 2024 2023 Change Sales1 Zinc 4,858 4502 8% 5,861 -17% 18,062 24,180 -25% Lead 961 1,038 -7% 1050 -8% 4,076 3,913 4% Silver 1,360 1,413 -4% 1217 12% 5,368 4,388 22% Others 371 357 4% 381 -3% 1,428 1,6
Slide 5: Financial Summary Consolidated
Financial Summary Consolidated INR. Crore or as stated 2024 2023 FY Particulars Q4 Q3 Change Q4 Change 2024 2023 Change Sales1 Zinc 4,858 4,502 8% 5861 -17% 18,061 24,180 -25% Lead 961 1,038 -7% 1050 -8% 4,076 3,913 4% Silver 1,360 1,413 -4% 1217 12% 5,368 4,388 22% Others 370 357 4% 381 -3% 1,427 1
Slide 6: Operational and Financial Performance
Operational Performance Mined metal production for the quarter was 299 kt, up 11% sequentially, driven by higher ore production across mines, further supplemented by improved mined metal grades, but marginally down y-o-y. The full year mined metal recorded the best-ever production of 1,079 kt, up 2%
Slide 7: Reserves & Resources, Projects and ESG Update
Total ore reserves stand at 175.1 million tonnes (net of production of 16.5 million tonnes in FY24) at the end of FY24 (173.5 million tonnes at the end of FY23) led by continued focus on resource to reserve conversion during the year. Exclusive mineral resources totalled 281.2 million tonnes. Contai
Slide 8: Liquidity and Investment, Outlook for FY25
Liquidity and Investment Company generated cash flow of INR 2,099 Crore during the quarter. As on March 31, 2024, the Company’s gross investments and cash & cash equivalents were INR 10,186 Crore as compared to INR 9,743 Crore at the end of December’23 which was invested in high quality debt instrum
Slide 9: About Hindustan Zinc
About Hindustan Zinc Hindustan Zinc, a Vedanta Group company in Zinc-Lead and Silver business is world’s 2nd largest integrated Zinc producer and now the 3rd largest Silver producer. The company has a market share of ~75% of the growing Zinc market in India with its headquarters at Zinc City, Udaipu
Slide 10: Hindustan Zinc Limited Investor Presentation Q4 FY24
HINDUSTAN ZINC LIMITED Investor Presentation April 2024 Q4 FY24 Earnings Presentation HINDUSTAN ZINC LIMITED – Q4 FY24 INVESTOR PRESENTATION
Slide 11: 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 12: Unique Positioning in Metal & Mining Landscape
Unique Positioning in Metal & Mining Landscape India’s largest & only 3rd 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 13: Strengthening Reserves & Resources (R&R)
Strengthening Reserves & Resources (R&R) Hindustan Zinc has the 2nd largest zinc R&R base globally. Increasing the longevity of the mines for business continuity and sustainable value accruals has been a key strategic priority for HZL. With a total R&R of 456.3 Mt and a metal content of 30.8 Mt, Hin
Slide 14: A 5-year Showcase of Industry Leading Performance
A 5-year Showcase of Industry Leading Performance Mined Metal (kt) Refined Metal (kt) Silver (MT) CAGR: 4.2% 1062 1079 1100-1125 CAGR: 4.4% 1075-1100 CAGR: 5.2% 1017 1032 1033 746 750-775 972 967 706 714 917 930 870 647 610 YoY: >2% YoY: >5% YoY: >3% FY20 FY21 FY22 FY23 FY24 FY25E FY20 FY21 FY22 FY2
Slide 15: Silver Growth Chronicle - World's 3rd largest silver producer
Silver Growth Chronicle - World’s 3rd largest silver producer Growth: Silver production grew over 2x in last 10 years and 15x in 2 decades. With FY24 production of 746 MT, the production increased by c.5% y-o-y Global Leadership: HZL is India’s only silver producer and is now the 3rd largest silver
Slide 16: Cost Resilience & Leadership
Cost Resilience & Leadership Sequential change in Zinc COP* ($/MT) Zinc COP* ($/MT) Q4 FY24 1,051 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
Slide 17: A Banner Year for Hindustan Zinc's operations
A Banner Year for Hindustan Zinc’s operations with a strong ESG foothold Sustainability Operational Financial ▪ in metal & mining ▪ Silver maximization strategy to ▪ Revenue for FY24 stood at c.INR 28.9k industry in S&P Global Corporate leverage elevated silver prices resulting Cr, down 15% y-o-y on
Slide 18: Sustainability Update
SUSTAINABILITY UPDATE
Slide 19: 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 20: Sustainability in Action: Reinforcing ESG Leadership
Sustainability in Action : Reinforcing ESG Leadership Global Recognitions Catalyzing Innovation • S&P Global sustainability yearbook • Secured 2 patents titled: 2024: Secured the top 1% ranking o Method for production of lead by and featured for the 7th consecutive performing dross removal year proc
Slide 21: 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 (SRI4PL and SRI5PL) for Dariba (200 MW) and Chanderiya (250 MW) plant locations respectively. SRI4PL & SRI5PL are part of Serentica group which is
Slide 22: Sustainability in Action: Transforming Waste into Wealth through Recycling
Sustainability in Action : Transforming Waste into Wealth through Recycling Hindustan Zinc’s recycling business underscores its strategic focus on circular economy and waste utilization, enabling better metal recovery and improved economic opportunities from the existing waste streams. Hindustan Zin
Slide 23: 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 (RE supply will initiate in phase wise manner from Climate April’24) Change 5.44 • 100% RE power consumption at Pantnagar Metal Plant 5.15 4.97 4.44 4.50 • Use of
Slide 24: Key Priorities: Sustainability Goals 2025
Key Priorities: Sustainability Goals 2025 Progress Major Actions 6 Quarters of zero fatalities • Critical Risk Management (CRM) implementation for 11 high risks Zero Harm 7 • Suraksha Kavach implementation • Fatality CAPA assurance program 4 • High risk SOP audit 2 0 0 • Safety Pause - Right to Refu
Slide 25: 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 2.57 Six c
Slide 26: Key Priorities: Communities
Key Priorities: Communities Hindustan Zinc is listed as one of the top ten companies for CSR in India 2023 by the CSR journal Culture Sports Women Empowerment ▪ To identify and preserve the dying Indian ▪ ZFA boys won 6 matches and drew 2 out of 8 ▪ Uthori campaign reached 92k individuals, and folk
Slide 27: Operational Review & Business Update
OPERATIONAL REVIEW & BUSINESS UPDATE Mr. Arun Misra CEO HZL
Slide 28: Market Update - 1/2
Market Update - 1/2 Zinc ($/T) Lead ($/T) Silver prices ($/toz) 3,319 ▪ With expectations of interest cuts by the US Fed 3,124 in future and geopolitical tensions in the Middle 24.1 2,526 2,498 2,475 2,450 2,429 East, the commodity prices rallied in Apr’24, with 23.6 23.3 23.6 2,170 23.2 2,140 2,123
Slide 29: Market Update - 2/2
Market Update - 2/2 Manufacturing PMIs ▪ Inflation still exists in US services sector, constraining the interest rate cuts. Chinese 56.5 56.9 59.1 authorities have recently stepped up their efforts 50.8 50.9 51.1 50.7 52.2 51.9 50 50.3 50.6 to support the weak real-estate. Construction 46.6 46.5 46.
Slide 30: Operational Highlights: Highest-ever Full Year Metal & Silver production
Operational Highlights : Highest-ever Full Year Metal & Silver production Mined Metal Refined Metal Saleable Silver FY24 FY24 FY24 1,079 kt 1,033 kt 746 MT (up 2% y-o-y) (marginally up y-o-y) (up 5% y-o-y) Q4 FY24 Q4 FY24 Q4 FY24 299 kt 273 kt 189 MT (up 11% q-o-q, (up 6% q-o-q, (down 4% q-o-q, down
Slide 31: Operational Review
Operational Review Q4 FY24 FY24 • Mined metal up by 11% q-o-q, driven by improved mined metal grades • Highest-ever full year mined metal production, up 2% y-o-y, on and higher ore production across mines, but marginally down y-o-y account of improved mined metal grades • Refined metal up by 6% q-o-
Slide 32: Charting Success: Improving consistency over years
Charting Success : Improving consistency over years Production volume change (q-o-q) Metal and silver production 80% q-o-q growth has achieved stability in FY24. Production 60% is steady q-o-q, rather than fluctuating, as compared to 40% previous years 20% 0% -20% -40% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY2
Slide 33: 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 34: Financial Review
FINANCIAL REVIEW Mr. Sandeep Modi CFO HZL
Slide 35: Financial Highlights
Financial Highlights (All figures in INR Cr unless stated otherwise) Revenue EBITDA Profit After Tax FY24 Q4 FY24 FY24 Q4 FY24 FY24 Q4 FY24 28,932 7,549 13,677 3,637 7,759 2,038 (down 15% y-o-y) (up 3% q-o-q, (down 22% y-o-y) (up 2% q-o-q, (down 26% y-o-y) (marginally up q-o-q, down 11% y-o-y) down
Slide 36: Consolidated Financial Review
Consolidated Financial Review Q4 FY24 FY24 • Revenue up 3% q-o-q on account of better zinc volumes partly offset • Revenue down 15% y-o-y on account of significantly lower zinc by lower lead & silver volumes, and lower metal prices; down 11% y- prices & volumes and strategic hedging gain in base per
Slide 37: Outlook for FY25
Outlook for FY25 Mined Metal Production (kt) 1,100 - 1,125 Refined Metal Production (kt) 1,075 - 1,100 Saleable Silver Production (MT) 750 - 775 Zinc COP* ($/T) 1,050 - 1,100 Project Capex ($Mn) 270 - 325 28 HINDUSTAN ZINC LIMITED – Q4 FY24 INVESTOR PRESENTATION * COP without royalty
Slide 38: Appendix
APPENDIX
Slide 39: EBITDA Bridge (FY24 vs FY23)
EBITDA Bridge (FY24 vs FY23) (All figures in INR Cr unless stated otherwise) *Inclusive of gains from Strategic Hedging in previous period Note: All financials are at consolidated level 30 HINDUSTAN ZINC LIMITED – Q4 FY24 INVESTOR PRESENTATION
Slide 40: EBITDA Bridge (Q4 FY24 vs Q4 FY23)
EBITDA Bridge (Q4 FY24 vs Q4 FY23) (All figures in INR Cr unless stated otherwise) *Inclusive of gains from Strategic Hedging in previous period Note: All financials are at consolidated level 31 HINDUSTAN ZINC LIMITED – Q4 FY24 INVESTOR PRESENTATION
Slide 41: EBITDA Bridge (Q4 FY24 vs Q3 FY24)
EBITDA Bridge (Q4 FY24 vs Q3 FY24) (All figures in INR Cr unless stated otherwise) Note: All financials are at consolidated level 32 HINDUSTAN ZINC LIMITED – Q4 FY24 INVESTOR PRESENTATION
Slide 42: Fundamental Growth Strategy: Maximising Shareholder Value
Fundamental Growth Strategy MAXIMISING SHAREHOLDER VALUE Expansion of Capacities Maintaining a Portfolio Strengthen Cost Expansion of Product Progressing towards Leadership of Mines with Long Life Portfolio through Sustainable Future • Expand mined metal Customer Centricity capacity (currently at •
Slide 43: Awards and Recognition - Q4 FY24
Awards and Recognition - Q4 FY24 ❖ Hindustan Zinc’s Integrated Annual Report FY23 won Platinum in its debut in LACP Vision Awards 2022/23 and its Digital Annual Report FY23 won its 3rd consecutive Platinum at AVA 2024 Awards ❖ Hindustan Zinc won ‘Leadership in HR Excellence’ award at 14th CII Nation
Slide 44: Metal Prices and Exchange Rate trends
Metal Prices and Exchange Rate trends Zinc Prices ($/t): Impacted by macro-economic factors Lead Prices ($/t): Range bound in the last year $3,000 $2,400 $2,200 $2,800 $2,000 $2,600 $1,800 $2,400 $1,600 $1,400 $2,200 $1,200 $2,000 $1,000 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23
Slide 45: Glossary and Notes
Glossary and Notes All India Football Federation Engineering, Procurement and Kilotonnes per annum Reverse Osmosis Audio-visual arts Construction League of American Reserves & Resources Battery Electric Vehicle Environment, Safety and Communications Professionals Science-based Targets Initiative Com
Slide 46: Thank You
THANK YOU HINDUSTAN ZINC LIMITED Yashad Bhawan, Udaipur-313 004, Rajasthan T: +91 294 6604000-02 www.hzlindia.com HINDUSTAN ZINC LIMITED – Q4 FY24 INVESTOR PRESENTATION