28th Apr 2006 07:14
Vedanta Resources PLC28 April 2006 Hindustan Zinc Limited Audited financial results for the Fourth Quarter and Year Ended March 31, 2006 Highlights Hindustan Zinc Limited ("HZL") today announced that it continues its stronggrowth momentum on account of increased volumes and zinc prices as it announcedits results for the fourth quarter and year ended March 31, 2006. • Net sales for the fourth quarter and year ended March 31, 2006 at Rs. 1,774 crores and Rs. 3,877 crores, an increase of 142 % and 76%, respectively • Profits Before Depreciation, Interest and Taxes for the fourth quarter and year ended March 31, 2006 at Rs. 1,296 crores and Rs. 2,417 crores, up by 242% and 136%, respectively • Net Profit for the fourth quarter and year ended March 31, 2006 at Rs. 802 crore and Rs. 1,472 crore, an increase of 250% and 123%, respectively • Earnings Per Share for the fourth quarter and year ended March 31, 2006 of Rs.18.99 and Rs. 34.85, up by 250% and 123%, respectively • Zinc - mined metal content for the year at 472,000 tonnes was 33% higher than the previous year. Refined zinc production for the year was 284,000 tonnes, 34% higher than the previous year, primarily due to additional output from the new 170,000 tpa hydro smelter commissioned at Chanderiya in May 2005, which has produced 14,000 tonnes in the month of March 2006. Surplus zinc concentrate of 100,000 tonnes was exported during the fourth quarter ended March 31, 2006 • Zinc - mined metal content for the fourth quarter at 125,335 tonnes was 26% higher than the corresponding period in the previous year. Refined zinc production for the fourth quarter was 91,588 tonnes, 70% higher than the corresponding period in the previous year • Lead metal produced during the year was 24,000 tonnes, including 4,300 tonnes from the recently commissioned 50,000 tpa Ausmelt lead plant. Full ramp-up of the Ausmelt lead plant is expected to be achieved during the first quarter of FY 2007 • Preliminary work on the new 170,000 tpa zinc smelter at Chanderiya has commenced. The plant is expected to commissioned by early 2008, taking HZL's total zinc capacity to 570,000 tpa For further information, please contact:Sumanth Cidambi [email protected] Director - Investor Relations Tel: +44 20 7659 4732 / +91 22 5646 1531 Vedanta Resources plc About HZLHZL is India's only integrated producer of zinc and among the world's leadingintegrated producers, with an Indian domestic market share is over 70%. Its zinccapacity is currently 400,000 tpa with smelter operations are situated primarilyin Chanderiya with additional smelting facilities in Debari, and Visakhapatnam.HZL has zinc mines in Dariba, Rampura Agucha, Zawar. HZL recently commissioned a50,000 tpa Ausmelt lead plant, increasing its capacity to 85,000 tpa and makingit India's sole primary producer of lead. The company is a subsidiary of VedantaResources plc. HINDUSTAN ZINC LIMITED Registered Office: Yashad Bhawan, Udaipur - 313004 HIGHLIGHTS • Annual turnover up by 76% at 3,877 crores• Net Profit for the year up by 123% at 1,472 crores• Earnings per Share for the year up by 123% at Rs. 34.85• Strong growth in production volumes on account of newly commissioned 170,000 tpa zinc smelter together• Preliminary work has commenced on the new 170,000 tpa zinc smelter at Chanderiya, which is expected to be commissioned by early 2008 AUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED MARCH 31, 2006 (Rs. in crore, except as stated)----------------------------------------------------------------------------------------------------------------------- P A R T I C U L A R S Nine Months Fourth quarter ended Year ended ended March 31 March 31 Dec 31, 2005 2006 2005 2006 2005 -----------------------------------------------------------------------------------------------------------------------1. Net sales / Income from 2,103 1,774 733 3,877 2,202 operations 2. Other Income 79 37 28 116 1353. Total Expenditure 1,061 515 382 1,576 1,313 a) (Accretion) / Decretion (93) 50 27 (43) 9 to stock b) Mining and Manufacturing Expenses 729 245 221 974 830 c) Mining Royalty 174 100 50 274 152 d) Staff costs 154 52 46 206 207 e) Administrative, selling 97 68 38 165 115 and other expenses 4. Profit before depreciation and 1,121 1,296 379 2,417 1,024 amortisation, interest and taxation (PBDIT) 5. Interest 44 3 1 47 26. Cash Profit (PBDT) 1,077 1,293 378 2,370 1,0227. Depreciation and amortization 103 38 31 141 898. Profit before taxation 974 1,255 347 2,229 9339. Provision for Taxation - Current 258 366 99 624 229 - Deferred 46 87 19 133 4310. Net Profit 670 802 229 1,472 66111. Paid up Share Capital (Face value Rs. 10/- each) 423 423 423 423 42312. Reserves excluding Revaluation Reserve 3,107 1,65513. Basic and Diluted EPS (Rs.) 15.86 18.99 5.42 34.85 15.6514. Aggregate of Non-promoter Shareholding - Number of Shares 14,82,16,469 14,82,16,469 14,82,16,469 14,82,16,469 14,82,16,469 - Percentage of shareholding 35.08 35.08 35.08 35.08 35.08----------------------------------------------------------------------------------------------------------------------- NOTES:1) The above results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors held on 28 April 2006.2) Investment in equity shares of a power company has been considered as an intangible asset. This has resulted in an additional amortisation charge of Rs.4.67 crore for the year ended March 31, 2006 (2005: Rs. 4.67 crore).3) The Company is engaged in the business of mining and smelting of zinc and lead and its operations are in a single segment as defined by Accounting Standard 17 - "Segment reporting" issued by The Institute of Chartered Accountants of India.4) During quarter ended September 30, 2005, the accounting policy relating to valuation of ore has been changed from Rs. 1/- per MT to lower of cost and net realisable value. This has resulted in an increase in profit before tax for the year ended March 31, 2006 by Rs. 6.87 crore. Prior year figures have been restated accordingly.5) Investor complaints outstanding at the beginning of the quarter were nil, number of complaints received and resolved during the quarter ended March 31, 2006 were 26 and 26 respectively. Outstanding number of complaints at the end of the quarter was nil.6) The Board of Directors have recommended a payment of dividend @ 25% i.e. Rs. 2.50 per equity share of Rs.10/- each.7) Figures of corresponding previous period have been regrouped / rearranged to correspond with current period figures wherever considered necessary. By Order of the Board Date: 28 April 2006 M S Mehta Place: Mumbai CEO and Whole-time Director This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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