Hindustan Zinc (HZL) reported healthy output during the fourth quarter of its fiscal, despite COVID-19 causing mass shutdowns.
However, that didn’t stop the company from withdrawing its full-year guidance, citing the uncertainty created by the pandemic, as its integrated metal production, sales, revenue, and net profit declined in Q4 FY2020, which ended March 31, 2020.
Sunil Duggal, HZL’s chief executive officer, is confident the company will bounce back in FY2021, adding that operations have resumed to normal levels. The key expansion projects to build annual capacity of 1.2mn mt have been completed, and the Fumer plant in Chanderiya is anticipated to begin this production this month.
The producer’s mined metal production increased by 2pc to 249,000 mt in Q4 FY2020—despite the lockdown beginning March 22—from 245,000 mt of mined metal output during the same quarter one year prior. Mined metal was higher during this time because of higher ore production and improved grade.
HZL recorded integrated metal production, including zinc and lead, of 221,000mt for Q4 FY2020, declining by 3pc from 227,000mt produced in Q4 FY2019. Integrated zinc production was 172,000 mt, decreasing by 2pc from 175,000mt of zinc produced in Q4 FY2019. Lead production declined by 7pc to 49,000mt from 53,000mt during Q4 FY2019.
The company’s zinc sales were Rs292bn ($386mn) in Q4 2020, down by 21pc from Rs369bn in Q4 FY2019. HZL reported lead sales at Rs692mn in Q4 2020, a 14pc decrease compared to lead sales of Rs809mn in Q4 FY2019.
HZL recorded revenue from operations at Rs432.1bn, a decrease of 20pc compared to revenue from operations at Rs538.4bn in Q4 FY2019. The decline was primarily due to a 19pc average decline in LME prices and lower metal premium, although it was partly offset by higher silver prices and rupee depreciation.
The net profit reported by the firm was Rs133.9bn in Q4 FY2020, declining by 33pc from a net profit of Rs201.2bn during Q4 FY2019. HZL reported an EBITDA at Rs196.1bn, a 30pc decrease from its EBITA of Rs279.7bn in Q4 FY2019.
($1 = Rs75.63)