Hindustan Zinc 58th AGM to Approve Rs13 Dividend per Share for FY 2023-24
Hindustan Zinc's 58th AGM will finalize a dividend of Rs 13 per share for FY 2023-24, reflecting strong financial results with two interim dividends already approved by the Board.
by Damodharan N
Updated Jul 04, 2024
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Table of Content
Hindustan Zinc's upcoming 58th Annual General Meeting (AGM) will confirm a dividend of Rs 13 per equity share for the financial year ending March 31, 2024. The resolution, passed as an Ordinary Resolution, confirms two interim dividends: Rs 7 per share (350%) and Rs 6 per share (300%), totaling Rs 13 per share on face value of Rs 2 each.
These dividends, already approved by the Board of Directors and totaling Rs 5,493 crore, highlight the company's robust financial performance.
The 58th Annual General Meeting (AGM) agenda includes:
- Adoption of Audited Standalone Financial Statements for FY 2023-24.
- Adoption of Audited Consolidated Financial Statements for FY 2023-24.
- Confirmation of interim dividends totaling Rs 13 per equity share for FY 2023-24.
- Re-appointment of Mr. Navin Agarwal as Director.
- Ratification of M/s S.R. Batliboi & Co. LLP as Statutory Auditors.
- Ratification of remuneration for Cost Auditors for FY 2024-25.
The 58th Annual General Meeting ("AGM") of Hindustan Zinc Limited will be held on Monday, July 29, 2024, at 12:00 Noon (IST)
Hindustan Zinc Annual Report
The Hindustan Zinc Annual Report for FY 2023-24 highlights the company's remarkable performance amid challenging global conditions, showcasing record production levels and a strong focus on sustainability.
This report details the strategic initiatives and financial metrics that underpin Hindustan Zinc's resilient growth and commitment to value creation for stakeholders.
Operational Segments at a Glance
Hindustan Zinc's operational segments include strategically located mines, smelters, and refineries in Rajasthan and Uttarakhand, supported by captive power plants. These integrated operations focus on boosting efficiencies, innovation, and responsible business practices.
1. Mines
- Strategic Locations: Operations in ore-rich Rajasthan, including Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar, and Kayad.
- Benchmark Operations: High safety standards, trained workforce, and globally benchmarked practices.
- Sustainable Practices: Focus on operational efficiencies and cost optimization.
- Volume Growth: Driven by sustained underground operations.
- Ore Production: 16.52 Mt.
2. Smelters & Refineries
- Strategic Placement: Smelters located in Chanderiya, Dariba, and Debari in Rajasthan, close to mines.
- Refineries: Zinc-Lead-Silver metal refineries at Pantnagar in Uttarakhand.
- Fully Integrated Operations: Supported by captive power.
- Efficiencies: Efforts to debottleneck smelters, expand value-added product portfolio, and recycle/reuse waste.
- Metal Capacity: 1.12 Mt.
3. Captive Power Plants (CPPs)
- Power Sources: Thermal, solar, and waste heat recovery power plants.
- Low-Cost Power: Providing reliable power for sustained operations.
- Solar Power Capacity: Augmentation to support climate change goals.
- Renewable Power: 450 MW delivery agreement to insulate from commodity price variations.
- Innovation in Thermal Power: Boosting capacity to generate more energy from the same amount of fuel.
- Total Captive Capacity: 603.16 MW.
4. Exploration (Mineral Resources and Ore Reserves)
- Technology and Innovation: Strong edge in technology and innovation.
- Long Mine Life: Over 25 years.
- Continuous Activities: Delineation and upgradation.
- Resource Enhancement: Focus on increasing R&R base to over 500 Mt and reserves to 200 Mt.
- Total R&R: 456.3 Mt.
Production Achievements:
Hindustan Zinc achieved significant production milestones in FY 2023-24, marking its highest-ever levels across mined metal, refined metal, and silver production.
- Highest Historic Production Levels: Record numbers in mined metal, refined metal, and silver.
- Silver Production: Hindustan Zinc became the 3rd largest silver producer globally, with Sindesar Khurd Mine ranking as the 2nd largest silver-producing mine.
- Silver Output: Increased by 5% to reach the highest annual production of 746 MT.
- Refined Metal Production: Reached its highest ever at 1,033 kt.
- Mined Metal Production: Increased by 2% year-on-year to 1,079 kt.
- Refined Lead Production: Increased by 3% to 216 kt.
Strategic Investments and Expansions:
- Fumer Plant and Rajpura Dariba Mill: Successfully commissioned, improving metal recovery.
- 30 ktpa Alloy Facility: Commenced commercial production, marking new growth and expansion.
Sustainability and Recognition:
- Sustainability Commitment: Operating on 100% renewable power, aiming for net-zero emissions by 2050 or sooner.
- LBMA Certification: Pantnagar silver refinery recognized by the London Bullion Market Association for 99.99% pure silver and included in the 'London Good Delivery' list.
Resource Reserves:
- Zinc Reserves: Second largest globally, with total ore reserves at 175.1 Mt as of March 31, 2024.
Challenges:
- Global mining activities were suspended or closed in many regions, leading to a decline in zinc prices by 25% year-on-year in FY 2023-24.
- This caused subdued demand and a significant pile-up of zinc stocks.
- Lead prices softened due to lower demand and a dip in automobile sales at the start of the year.
Future Outlook:
- Zinc Market:
- Since April 2024, zinc prices have begun to rise due to a rebound in global manufacturing activity.
- The domestic market shows a strong Purchasing Managers’ Index (PMI) leading to a 20% year-on-year increase in zinc consumption.
- Demand is expected to remain robust due to India's economic growth, rapid urbanisation, and a focus on quality infrastructure.
- Lead Market:
- Despite initial lower demand, the Indian lead market is benefiting from increased infrastructure spending and the focus on EV charging as per the FY 2024-25 budget.
- Improvement is anticipated in both zinc and lead markets.
- Silver Market:
- Silver demand is expected to increase significantly with the development of industrial use-cases like EVs and 5G.
- Hindustan Zinc's silver maximisation strategy positions it well to capitalize on this growth.
Consolidated Financial Performance (₹ in crore)
|
Particulars |
FY 2023-24 |
FY 2022-23 |
|
Revenue from operations (Incl. other operating income) |
28,932 |
34,098 |
|
Other income |
1,074 |
1,379 |
|
Profit before depreciation, interest, tax, and exceptional item |
14,730 |
18,885 |
|
Less: Interest |
955 |
333 |
|
Less: Depreciation and amortisation expense |
3,468 |
3,264 |
|
Less: Exceptional item |
- |
- |
|
Profit before tax |
10,307 |
15,288 |
|
Less: Net tax expense |
2,548 |
4,777 |
|
Net profit |
7,759 |
10,511 |
|
Earnings per share (₹/share) |
18.36 |
24.88 |
Operational performance of Hindustan Zinc for FY 2023-24 compared to FY 2022-23
|
Production Performance |
FY 2023-24 |
FY 2022-23 |
% Change |
|
Total mined metal (kt) |
1,079 |
1,062 |
2% |
|
Refined saleable metal production (kt) |
1,033 |
1,032 |
0% |
|
Refined zinc (kt) |
817 |
821 |
-0.5% |
|
Refined lead (kt) |
216 |
211 |
2.4% |
|
Saleable silver production (tonnes) |
746 |
714 |
4.5% |
Read the full Report and Notice Here
Hindustan Zinc Limited
Hindustan Zinc Limited (HZL) is India’s largest and the world’s second-largest integrated zinc producer, renowned for over 50 years of operational excellence. With a strong commitment to safety and environmental stewardship, HZL prioritizes technological innovation in conserving natural resources.
The company boasts a robust operational footprint across Rajasthan and Uttarakhand, encompassing lead-zinc mines, zinc and lead smelters, and captive power plants.
HZL, a subsidiary of Vedanta Limited with significant government ownership, holds a dominant position in India's zinc industry, commanding approximately 75% market share. Globally, it ranks as the third-largest silver producer, leveraging its extensive metal production capacity of 1.123 million tonnes.
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Hindustan Zinc 58th AGM to Approve Rs13 Dividend per Share for FY 2023-24 - FAQs
1. What was Hindustan Zinc's revenue from operations in FY 2023-24?
Hindustan Zinc's revenue from operations, including other operating income, amounted to ₹28,932 crore in FY 2023-24, reflecting a year-on-year decline primarily due to lower metal prices.
2. How much was Hindustan Zinc's other income in FY 2023-24?
The company generated ₹1,074 crore as other income in FY 2023-24, which includes interest income, dividend income, and gains from investments.
3. What was Hindustan Zinc's profit before depreciation, interest, tax, and exceptional items in FY 2023-24?
Hindustan Zinc reported a profit before depreciation, interest, tax, and exceptional items of ₹14,730 crore in FY 2023-24, down from ₹18,885 crore in the previous fiscal year, reflecting lower revenues and higher operational costs.
4. How much interest did Hindustan Zinc pay in FY 2023-24?
Interest expenses for Hindustan Zinc amounted to ₹955 crore in FY 2023-24, up from ₹333 crore in FY 2022-23, primarily due to higher borrowing costs.
5. What was Hindustan Zinc's depreciation and amortisation expense in FY 2023-24?
Hindustan Zinc incurred depreciation and amortisation expenses totaling ₹3,468 crore in FY 2023-24, compared to ₹3,264 crore in FY 2022-23, reflecting the amortisation of assets and investments made in previous years.
6. What was Hindustan Zinc's profit before tax in FY 2023-24?
Hindustan Zinc's profit before tax stood at ₹10,307 crore in FY 2023-24, down from ₹15,288 crore in FY 2022-23, impacted by lower operating income and higher expenses.
7. How much tax did Hindustan Zinc pay in FY 2023-24?
The company paid ₹2,548 crore in taxes in FY 2023-24, compared to ₹4,777 crore in FY 2022-23, reflecting a decrease due to lower taxable income.
8. What was Hindustan Zinc's net profit in FY 2023-24?
Hindustan Zinc reported a net profit of ₹7,759 crore in FY 2023-24, down from ₹10,511 crore in FY 2022-23, reflecting the impact of lower revenues and higher costs.
9. What was Hindustan Zinc's earnings per share (EPS) in FY 2023-24?
The company's earnings per share (EPS) for FY 2023-24 were ₹18.36 per share, compared to ₹24.88 per share in FY 2022-23, reflecting lower profitability per outstanding share.
10. How much cash and cash equivalents did Hindustan Zinc have in FY 2023-24?
Hindustan Zinc had cash and cash equivalents amounting to ₹10,187 crore as of FY 2023-24, providing liquidity for operational needs and strategic investments.
11. What was the percentage change in Hindustan Zinc's total mined metal production from FY 2022-23 to FY 2023-24?
Total mined metal production increased by 2% from 1,062 kt in FY 2022-23 to 1,079 kt in FY 2023-24, driven by operational efficiencies and sustained mining activities.
12. How much refined saleable metal did Hindustan Zinc produce in FY 2023-24?
Hindustan Zinc produced 1,033 kt of refined saleable metal in FY 2023-24, maintaining similar levels compared to the previous fiscal year, reflecting stable production capacities.
13. What was Hindustan Zinc's refined zinc production in FY 2023-24?
The company's refined zinc production was 817 kt in FY 2023-24, slightly lower than 821 kt in FY 2022-23.
14. What was Hindustan Zinc's refined lead production in FY 2023-24?
Hindustan Zinc produced 216 kt of refined lead in FY 2023-24, marking a 2.4% increase from 211 kt in FY 2022-23.
15. How much silver did Hindustan Zinc produce in FY 2023-24?
The company produced 746 tonnes of saleable silver in FY 2023-24, up by 4.5% from 714 tonnes in FY 2022-23.
16. What percentage of Hindustan Zinc's revenue came from Zinc and Lead in FY 2023-24?
Zinc and Lead contributed 84% to Hindustan Zinc's total revenue in FY 2023-24.
17. What percentage of Hindustan Zinc's revenue came from Silver in FY 2023-24?
Silver accounted for 13% of Hindustan Zinc's total revenue in FY 2023-24, reflecting its significant contribution alongside zinc and lead to the company's diversified revenue streams.
18. What was Hindustan Zinc's total revenue from operations in FY 2023-24?
Hindustan Zinc recorded total revenue from operations, including other operating income, amounting to ₹28,932 crore in FY 2023-24, driven by sales of zinc, lead, and silver metals.
19. How much other income did Hindustan Zinc generate in FY 2023-24?
Hindustan Zinc generated ₹1,074 crore as other income in FY 2023-24, comprising dividends, interest, and gains from investments, contributing to its overall financial performance.
20. What was Hindustan Zinc's gross cash and cash equivalents in FY 2023-24?
The company's gross cash and cash equivalents stood at ₹10,187 crore in FY 2023-24, providing financial flexibility for operational investments and strategic initiatives.
21. What was Hindustan Zinc's profit before tax in FY 2023-24?
Hindustan Zinc reported a profit before tax of ₹10,307 crore in FY 2023-24, reflecting operational profitability before accounting for taxes and exceptional items.
22. How much capital expenditure (Capex) did Hindustan Zinc utilize in FY 2023-24?
The company allocated ₹4,210 crore towards capital expenditure (Capex) in FY 2023-24, focusing on expanding production capacities and enhancing operational efficiencies.
23. What was Hindustan Zinc's net worth in FY 2023-24?
Hindustan Zinc's net worth as of FY 2023-24 was ₹15,195 crore, reflecting the total assets minus total liabilities, indicating its financial strength and stability.
24. How much interest did Hindustan Zinc pay in FY 2023-24?
Hindustan Zinc incurred interest expenses amounting to ₹955 crore in FY 2023-24, reflecting the cost of borrowing for operational and capital financing purposes.
25. What was Hindustan Zinc's depreciation and amortisation expense in FY 2023-24?
Hindustan Zinc's depreciation and amortisation expenses totaled ₹3,468 crore in FY 2023-24, accounting for the systematic allocation of asset costs over their useful life.
26. What were the challenges Hindustan Zinc faced in FY 2023-24?
Hindustan Zinc encountered challenges including a 25% decline in zinc prices due to global mining suspensions, subdued demand, and inventory accumulation, impacting financial performance.
27. What is Hindustan Zinc's strategy regarding sustainability?
Hindustan Zinc aims for net-zero emissions by 2050, operating on 100% renewable power sources, aligning with environmental sustainability goals and reducing carbon footprint.
28. What certifications did Hindustan Zinc receive for its silver refinery in FY 2023-24?
Hindustan Zinc's Pantnagar silver refinery received LBMA certification for producing 99.99% pure silver, meeting global standards and enhancing market credibility.
29. How large are Hindustan Zinc's zinc reserves as of March 31, 2024?
Hindustan Zinc's zinc reserves stood at 175.1 million tonnes as of March 31, 2024, positioning it among the largest zinc reserves globally.
30. What is the outlook for Hindustan Zinc's zinc market post-April 2024?
Post-April 2024, Hindustan Zinc anticipates rising zinc prices driven by global manufacturing recovery, robust domestic demand, and infrastructure development, supporting future revenue growth.
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