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Hindustan Zinc Ltd

BSE Code : 500188 | NSE Symbol : HINDZINC | ISIN:INE267A01025| SECTOR : Non Ferrous Metals |

NSE BSE
 
SMC down arrow

293.35

-5.65 (-1.89%) Volume 1891210

31-Mar-2023 EOD

Prev. Close

299.00

Open Price

298.00

Bid Price (QTY)

0.00(0)

Offer Price (QTY)

293.35(3850)

 

Today’s High/Low 298.00 - 292.30

52 wk High/Low 383.00 - 242.05

Key Stats

MARKET CAP (RS CR) 123970.86
P/E 11.42
BOOK VALUE (RS) 74.0276978
DIV (%) 900
MARKET LOT 1
EPS (TTM) 25.7
PRICE/BOOK 3.96338139263329
DIV YIELD.(%) 6.13
FACE VALUE (RS) 2
DELIVERABLES (%) 65.64
4

News & Announcements

29-Mar-2023

Larsen & Toubro bags two orders from Vedanta Group

29-Mar-2023

Brightcom Group Ltd leads losers in 'A' group

22-Mar-2023

Board of Hindustan Zinc recommends interim dividend

22-Mar-2023

Hindustan Zinc declares fourth interim dividend of Rs 26 per share

22-Mar-2023

Board of Hindustan Zinc recommends interim dividend

17-Mar-2023

Hindustan Zinc to consider dividend

23-Feb-2023

Hindustan Zinc EGM scheduled

20-Jan-2023

Board of Hindustan Zinc recommends Third Interim Dividend

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
20 Microns Ltd 533022 20MICRONS
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Arcotech Ltd 532914 ARCOTECH
Ashapura Minechem Ltd 527001 ASHAPURMIN
Asi Industries Ltd 502015 ASOCSTONE
Auroma Coke Ltd 531336
Bagwe Udyog Ltd 526584
Balasore Alloys Ltd 513142 ISPATALLOY
Baroda Extrusion Ltd 513502
Baroda Ferro Alloys & Industries Ltd 513264
Bhagyanagar India Ltd 512296 BHAGYANGR
Bharat Thermite Ltd 523990
Bharat Zinc Ltd 500053
Coal India Ltd 533278 COALINDIA
Co-nick Alloys (India) Ltd 40151
Cubex Tubings Ltd 526027 CUBEXTUB
Deccan Gold Mines Ltd 512068
Devidayal Industries Ltd 503976
Dharmadeep Powerdive Industries Ltd 513383
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Edayar Zinc Ltd 40070
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Essem Catalyst Ltd 523858
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Grapco Mining & Co Ltd 500169 GRAPCOMIN
Gravita India Ltd 533282 GRAVITA
Gujarat Cypromet Ltd 530467 GUJCYPROM
Gujarat Mineral Development Corporation Ltd 532181 GMDCLTD
Hindustan Copper Ltd 513599 HINDCOPPER
Hindustan Ferro & Industries Ltd 513272
Hindustan Transmission Products Ltd 501328
Hira Ferro Alloys Ltd 533256 HIRAFERRO
Hoganas India Pvt Ltd 513207 HOGANAS
Impex Ferro Tech Ltd 532614 IMPEXFERRO
Indeen Alloys Ltd 531501
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Indian Metals & Ferro Alloys Ltd 533047 IMFA
Indo Gulf Corporation Ltd (Merged) 500723 INDOGULF
Indsil Hydro Power & Manganese Ltd 522165
International Catalysts Ltd 524346
Jainam Ferro Alloys (I) Ltd 535403 JAINAM
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Kachchh Minerals Ltd 531778
Kanthal India Ltd (Amalgamated) 513244
Karthik Alloys Ltd 40175
KIOCL Ltd 540680 KIOCL
Krishna Ferro Products Ltd 513627
Madhav Copper Ltd 538398 MCL
Maharashtra Elektrosmelt Ltd(merged) 504824
Maithan Alloys Ltd 590078 MAITHANALL
Manaksia Ltd 532932 MANAKSIA
Mardia Copper Products Ltd 513450
Mardia Extrusions Ltd 530113
Mardia Samyoung Capillary Tubes Company Ltd 513544
Mardia Tubes Ltd 40186
Metkore Alloys & Industries Ltd 532990 METKORE
MFS Intercorp Ltd 513721
MOIL Ltd 533286 MOIL
Monind Ltd 532078
MSR India Ltd 508922
Multimetals Ltd 40751
N D Metal Industries Ltd 512024
Nagpur Power & Industries Ltd 532362
Nav Chrome Ltd (Merged) 526255
NILE Ltd 530129
Nissan Copper Ltd 532789 NCOPPER
NMDC Ltd 526371 NMDC
NMDC Steel Ltd 543768 NSLNISP
Orde Industries Ltd 513399
Orissa Minerals Development Company Ltd 590086 ORISSAMINE
Oswal Minerals Ltd 522299 OSWALMIN
Oxides & Specialities Ltd 523389 HERDIOXIDE
Pandian Graphites (India) Ltd 526413 PANDGRAPH
Powerflow Ltd 517026
Precision Wires India Ltd 523539 PRECWIRE
Prime Metals Ltd 531095
Ram Ratna Wires Ltd 522281 RAMRAT
RCI Industries & Technologies Ltd 537254
Resurgere Mines & Minerals India Ltd 533017 RMMIL
Rockwool (India) Ltd 523299
Rohit Ferro Tech Ltd 532731 ROHITFERRO
Rose Zinc Ltd 530631
Sagardeep Alloys Ltd 510200 SAGARDEEP
Sandur Manganese & Iron Ores Ltd 504918
Sarthak Metals Ltd 540393 SMLT
Shakti Rods and Wires Ltd 530229
Shalimar Wires Industries Ltd 532455
Shera Energy Ltd 78230 SHERA
Shilp Gravures Ltd 513709
Shirpur Gold Refinery Ltd 512289 SHIRPUR-G
Shiva Granito Export Ltd 540072
Shyam Century Ferrous Ltd 539252 SHYAMCENT
Siddhi Vinayak Metal Ltd 513695
Silcal Metallurgic Ltd 524426
Sizemasters Technology Ltd 513496
South West Pinnacle Exploration Ltd 535049 SOUTHWEST
Southern Magnesium & Chemicals Ltd 513498
Srinivasa Ferro Alloys Ltd 531796
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Sterlite Communications Ltd (Merged) 500401 STERLITCOM
Sterlite Industries (India) Ltd(Merged) 500900 STER
Sunrise Zinc Ltd 531345
Supreme Conductors Ltd 517328
Suryoday Allo-Metal Powders Ltd 531920
SVC Resources Ltd 512449
Tinplate Company of India Ltd 504966 TINPLATE
Translam Ltd 526819
Trinetra Cement Ltd(Merged) 513428 INDOZINC
Vardhaman Wires & Polymers Ltd 513705
VBC Ferro Alloys Ltd 513005
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Share Holding

Category No. of shares Percentage
Total Foreign 39728581 0.94
Total Institutions 127984597 3.03
Total Govt Holding 1247950900 29.54
Total Non Promoter Corporate Holding 4139441 0.10
Total Promoters 2743154310 64.92
Total Public & others 62361171 1.47
Total 4225319000 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Hindustan Zinc Ltd

Hindustan Zinc Ltd, a Vedanta Group company, is the market leader in zinc, lead and sulphuric acid business. The company is India's only and the world's largest integrated producer of Zinc-Lead. They are also one of the leading Silver producers in the world. The Company is engaged in exploring, extracting and processing of minerals. HZL's operations include five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulphuric acid plants, one silver refinery plant, six captive thermal power plants and four captive solar plants in the state of Rajasthan. In addition, the Company has a rock-phosphate mine in Matoon, near Udaipur in Rajasthan and zinc, lead, silver processing and refining facilities in the State of Uttarakhand. It has wind power plants in the states of Rajasthan, Gujarat, Karnataka, Tamil Nadu and Maharashtra and solar power plants in the State of Rajasthan. Their integrated business operations span the synergistic areas of Mines (Zinc-Lead Mines); Smelters (Hydrometallurgical Zinc Smelters, Lead Smelters, Pyro Metallurgical Zinc-Lead Smelter); and Captive Power Plants (CPP). The company's core business comprises of mining and smelting of zinc and lead along with captive power generation. The company is headquartered in Udaipur, Rajasthan and has zinc-lead mines at Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar and Kayad; primary smelter operations at Chanderiya, Dariba and Debari, all in the state of Rajasthan; and finished product facilities in the state of Uttarakhand. The company's current mined metal production capacity is 1.123 Mtpa (0.913 tonnes of zinc and 0.21 tonnes of lead). With reserves and resources of 447.9 million tonnes, their exploration programme is integral to their growth and future expansions. The company also owns 505.5 MW of coal based thermal captive power plants in Rajasthan to support their metallurgical operations. Additionally, it has green power capacity of 354.59 W including 273.5 MW of wind power, 40.42 MW of solar power and 40.67 MW of waste heat power. Hindustan Zinc Ltd was incorporated from the erstwhile Metal Corporation of India (MCI) on January 10, 1966 as a Public Sector Undertaking (PSU). In April 2002, Sterlite Opportunities and Ventures Ltd (SOVL) made an open offer for acquisition of shares of the company; consequent to the disinvestment of Government of India's (GOI) stake of 26% including management control to SOVL and acquired additional 20% of shares from public, pursuant to the SEBI Regulations 1997. In August 2003, SOVL acquired additional shares to the extent of 18.92% of the paid up capital from GOI in exercise of 'call option' clause in the share holder's agreement between GOI and SOVL. With the above additional acquisition, SOVL's stake in the company has gone up to 64.92%. Thus GOI's stake in the company now stands at 29.54%. Later on SOVL was merged with Sterlite Industries India Ltd in April 2011, which in turn merged with Sesa Goa Ltd to form Sesa Sterlite Limited in August 2013. Sesa Sterlite was renamed to Vedanta Limited in April 2015. Hindustan Zinc is now a direct subsidiary of Vedanta Limited. During the year 2002-03, the company completed 32,000 tonnes of zinc debottlenecking at Debari Zinc Smelter and ViZag Zinc Smelter. Also, they completed the debottlenecking of Rampura Agucha Mine from 1.37 million tonnes per annum to 2.30 million tonnes per annum. During the year 2003-04, the company completed the 35,000 tonnes of zinc debottlenecking at Chanderiya Smelter Complex. During the year 2004-05, the company expanded the Rampura Agucha Mine from 2.30 million tonnes per annum to 3.75 million tonnes per annum. During the year 2005-06, the company commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter (Hydro I) at Chanderiya Smelter Complex. They commissioned 2 X 77 MW Captive Power Plant at Chanderiya Smelter Complex. Also, they Commissioned 50,000 tonnes per annum of Ausmelt Lead Smelter at Chanderiya Smelter Complex. During the year 2006-07, the company began production in Sindesar Khurd Mine with an initial production capacity of 0.3 million tonnes per annum. Also, they Commissioned 38.4 MW of Wind Energy Farms at Gujarat. During the year 2007-08, the company commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter (Hydro II) in a benchmark time of 20 months at Chanderiya Smelter Complex. They commissioned 80 MW Captive Power Plant at Chanderiya Smelting Complex. They completed 5,000 tonnes of zinc debottlenecking at Debari Zinc Smelter. Also, they Commissioned 50.4 MW of Wind Energy Farms at Gujarat. During the year 2008-09, the company expanded the Rampura Agucha Mine from 3.75 million tonnes per annum to 5.00 million tonnes per annum making the total mining capacity of the Company to 7.40 million tonnes per annum. They completed the 88,000 tonnes per annum zinc debottlenecking at Chanderiya Smelter Complex & Debari Zinc Smelter making the total metal production capacity to 754,000 tonnes per annum. They commissioned 80 MW Captive Power Plant at Zawar Mines. Also, they commissioned 34.4 MW Wind Energy Farms making the Company's total Wind Energy capacity to 123.2 MW. During the year 2009-10, the company expanded the Rampura Agucha Mine from 5.00 million tonnes per annum to 6.00 million tonnes per annum, increasing the total mining capacity of the Company to 8.40 million tonnes per annum. Also, they commissioned the 210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Rajpura Dariba, increasing the Zinc & Lead metal production capacity to 964,000 tonnes per annum (879,000 tonnes of Zinc and 85,000 tonnes of Lead). During the year 2010-11, the company commissioned the 1.50 mtpa concentrator at Sindesar Khurd. Also, they added 160 MW (80X2) captive power generation capacity at Dariba. In January 2011, the company announced an addition of 150 MW in our existing wind power capacity. Of this, around 135 MW has already been commissioned. The balance capacity is expected to be commissioned in Q4 FY 2012. During the year 2011-12, the company ramped-up Sindesar Khurd mine to 2.0 mtpa capacity. During the year, the company commissioned the 100 ktpa lead smelter at Dariba, increasing the lead production capacity to 185 ktpa. The company also commissioned new silver refinery, increasing the silver refining capacity to 500 tpa. The company commissioned 102 MW expansion in wind power, increasing total wind power generation capacity to around 274 MW. During the year, the company commenced underground mine development work at Rampura Agucha mine and greenfield Kayar mine. During the year 2012-13, HZL produced development ore from Rampura Agucha underground mine and Kayad underground mine. It also announced the next phase of growth plan to increase capacity to 1.2 million tonnes per annum. During the year 2013-14, HZL commissioned new roaster at Dariba. The company also commissioned the first sewage treatment plant in Udaipur which will treat 20 million litres of sewage per day. During the year 2014-15, paste fill plant at Sindesar Khurd Mine and Rampura Agucha Mine were commissioned. During the year 2015-16, HZL's Sindesar Khurd Mine achieved 3 million MT per annum production capacity. During the year, the Sindesar Khurd Mine beneficiation plant was debottlenecked to enhance its capacity from 2.0 million MT per annum to 2.75 million MT per annum. During the year 2016-17, Sindesar Khurd Mine ore production capacity was ramped up from 3.0 million MT to 3.7 million MT per annum. During the year, the Chanderiya Hydrometallurgical Zinc Smelter capacity was enhanced from 4.2 lakh metric tonnes per annum to 4.3 lakh metric tonnes per annum. The Dariba Hydrometallurgical Zinc Smelter capacity was enhanced from 2.1 lakh metric tonnes per annum to 2.2 lakh metric tonnes per annum. During the year, the company commissioned 1.5 million MT pa capacity mill at Sindesar Khurd in record 14 months. During the year, HZL successfully commissioned 16 MW of captive solar farms. In year 2017-18, the main shaft hoisting and south ventilation shaft systems were commissioned. The main shaft was equipped during the year and winder installation work began. Zawar mines achieved record ore production of 2.2 million tonnes during the year and production capacity has been ramped up to 3.0 mtpa. The existing mill capacity was debottlenecked to 2.7 mtpa. Sindesar Khurd mine achieved its target capacity of 5 million tonnes during the year. Rampura Agucha underground reached an ore production run-rate of 3.0 mtpa during year 2017-18. Capital mine development increased by 12% to 43 km in FY 2019. At Rampura Agucha underground mine, the ventilation system was commissioned earlier liberating the mine from ventilation issues. The commissioning of mid shaft loading system in October 2018 allowed waste hoisting to be done through the shaft ahead of schedule, leading to improvement in ore production. The second paste fill plant was completed ahead of schedule in Q4 and the mine is equipped with paste fill capacity to support 5.0 mtpa production. During the year 2018-19, Sindesar Khurd received environment clearance to produce 6.0 million MT of ore and 6.5 million MT of ore beneficiation. The new 1.5 mtpa mill accomplished smooth commissioning and began production in the third quarter of the year, taking the total milling capacity to 6.2 mtpa. The underground crusher and production shaft were commissioned during Q4. The new 2.0 mtpa mill was commissioned in Q4. 22 MW solar plant was completed at Rampura Agucha taking the total solar capacity to 38 MW. 25 MLD Sewage Treatment Project was commissioned at Udaipur taking the total capacity to 45 MLD. All major projects to build capacity of 1.2 mtpa mined metal were completed during the year 2019-20. Capital mine development increased by 12% to 48 km in FY 2020. At Rampura Agucha, the Shaft project was commissioned along with the associated conveyor and crusher systems and hauling from shaft through ore pass commenced in the final quarter. At Sindesar Khurd, shaft is fully integrated with mine and ore hauling was ramped up to capacity. The second paste fill plant was commissioned in June 2019, liberating the mine to operate at full production capacity. At Zawar, India's first ever dry tail stacking plant was commissioned in the second quarter, significantly reducing water consumption & land requirement and addressing tailing dam risk. At Rajpura Dariba, the existing production shaft capacity is being upgraded from 0.7 to 1.3 mtpa to debottleneck the mine and erection work commenced. RD mine has received environment clearance for expansion in April 2020 from 1.08 to 2.0 million TPA of ore production and ore beneficiation from 1.2 to 2.5 million TPA. Smelter debottlenecking to expand capacity to 1.123 mtpa was completed during the year to maintain mines/smelter synergies at higher levels of production. In year 2020-21, the first Dry Tailing Plant was commissioned at Zawar Mines. The Graphite floatation system was commissioned at Mill 3 of Sindesar Khurd Mines to enhance the smelter and boost the recovery. Back fill plants were commissioned at Zawarmala and Mochia mines. The development of North Decline (ND1) was completed at Rampura Agucha Mine. It commissioned a 10 MLD Sewage Treatment Plant (STP) plant in Udaipur. The Company completed RD Mines Shaft & Conveyor upgradation for enhancement of ore hoisting capacity in Q3 FY 2021-22. It commissioned first made-in-India emergency escape route (staircase type) in at Rajpura Dariba Underground Mine (RDM) as well as underground rescue station at Rampura Agucha Mine (RAM). It completed Miyawaki Method of Afforestation pilot project at Debari Zinc Smelter (DZS). It commissioned 5 MLD Sewage Treatment Plant (STP) in Udaipur, bringing the total Udaipur STP capacity to 60 MLD. In the area of water stewardship, Rampura Agucha Mine completed the execution of groundwater recharge intervention across 4 blocks of Bhilwara district having ground water recharge potential of 8.7 million cubic meter (MCM)/ annum. It completed installation of Dry Filtration & Paste fill plant to enable effective tailing managements by switching from Wet to Dry tailing management system. Apart from these, installation of underground ventilation fans have started to enhance the ventilation capacities and working conditions of West Mochia and North Baroi mines.

Hindustan Zinc Ltd Chairman Speech

Dear Stakeholders,

At Hindustan Zinc, amidst heartening optimism, there is, a strong sense of buoyancy that drives us towards new horizons of greater growth and inclusive value creation. The journey of the past one year, which saw us successfully negotiate a multitude of challenges, has left us enthused about the future. It has encouraged us to surge proactively ahead towards realising our vision and delivering on our promises and goals.

In a tough macro environment,

FY 2021-22 proved to be an exceptional year for Hindustan Zinc. We set many new operational benchmarks and notched up new milestones. I am pleased to share that we posted unprecedented numbers across both operational and financial metrics during the year, touching historically high production volumes, and record annual revenue, EBIDTA and net profit.

This was no small feat and was made possible by the dedication and hard work of our people. I would like to take a moment here to thank them all for standing by us through the turmoil of the times. I credit them for giving us many reasons to celebrate and for shaping Hindustan Zinc?s journey of excellence. We continue to steer the trajectory of our targeted initiatives to nurture a culture of high performance and inclusiveness in our workforce, which finds endorsement in the various awards and accolades we receive year-on-year and validates our people-centric policies and programmes.

In FY 2021-22, too, we earned several awards and recognitions that underscored the quality and strength of our pro-employee initiatives. These included Hindustan Zinc?s certification as ‘Great Place to Work 2021? for the 4th consecutive year, ‘Company with Great Managers 2022? by People Business for the 2nd year in a row and ‘Prize for Leadership in HR Excellence? by CII National HR Excellence Awards. Going forward, it shall be our focussed endeavour to drive even greater employee-centricity, to generate more opportunities for our people, across genders, demographics, and communities, to grow and progress.

We shall simultaneously continue to work concertedly towards augmenting the safety environment at our mines and sites. Given the nature of our operations, we are cognisant of the inherent risk involved in our business. It is with deep sorrow that I must inform you that despite best efforts to keep our people safe, three unfortunate incidents at our sites led to the tragic loss of four precious lives during the year. We share the grief of the bereaved families and will continue to support them in every possible way in these difficult times. We have also launched thorough investigations into all the incidents and will take corrective actions after a comprehensive root cause analysis. Let me assure you that every single life is dear to us, and we will not compromise on the safety of our people under any circumstances.

Our continual investments in strengthening our safety framework through digitalisation and automation are aimed at propelling our Zero Injury vision, and we will not rest till we have achieved this goal. We have made the 2025 Sustainability Goals an intrinsic part of our strategic approach and remain committed to surging ahead aggressively towards the realisation of these objectives.

The formation of our Board level Sustainability and ESG Committee during FY 2021-22 is aligned with this commitment and facilitates our efforts towards the accomplishment of our 2025 goals and Environmental, Social and Governance priorities. The Sustainability and ESG Committee will help accelerate our transition towards 50% renewable energy in our operations - a voyage on which we have embarked as a responsible corporate citizen striving to decarbonise our mining operations.

From introduction of electric vehicles in our mines to reporting based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, we have initiated a host of focussed measures to help us achieve our ESG targets. We have also undertaken a 3-year engagement with the International Union for Conservation of Nature (IUCN) for development of a Biodiversity Management Plan from no net loss approach. Our participation in the British High Commission Conference of the Parties (COP26), and the fact that Hindustan Zinc has joined the Taskforce on Nature-related Financial Disclosure (TNFD) to tackle nature- related risks proactively, further underscores our commitment to deliver on our Net-Zero goal by 2050.

Our concerted efforts on the ESG front found resonance in the various accolades and awards earned during the year. These honours make us confident that we are on the right track of delivering on our ESG vision, which encompasses many futuristic goals, including achievement of 5x water positivity by 2025.

Most of you may be aware that the sustainability thrust at Hindustan Zinc goes beyond the organisational framework and encompasses the communities around our operations. We sustained our CSR focus during FY 2021-22 through coordinated efforts to ensure continuity of our support programmes for community livelihood, skill development and education, even while extending urgent and immediate relief to the people impacted by the COVID-19 pandemic. To facilitate remote learning amidst the pandemic, we designed subject-wise learning materials and practice papers, and arranged regular classes through online platforms as well as home visits by teachers to ensure learning outcomes, among other measures.

I am happy to share that Hindustan Zinc has received the ‘BRICS Solution for SDG Awards 2021 ?, for intensively promoting sustainable livelihood for 30,000 farmers, and for establishing five farmer-led producer companies.

The Company has also won the CSR Leadership Award 2021, presented by World CSR Day for transforming the lives of nearby communities. It was further honoured with ‘Leaders for Social Change? award by the Social Story Foundation for its Sakhi Women Empowerment initiatives - another endorsement of our deep-rooted commitment to community enrichment and empowerment in line with our ESG ethos. We focussed extensively during the year on creating strong institutional structures on the ground. Some of these included federating seven new micro finance legal entities and the aforementioned constitution of five farmer-led producer companies. We also facilitated the formation of over 3,000 Anganwadi Management Committees to strengthen community ownership, with focus on children, pregnant women and new mothers.

While sustainability continues to be integral to our strategic approach, we are concurrently expanding into new markets of opportunity to steer our growth plans. At the same time, we continue to focus on augmenting our production to meet the emerging market demand. We shall continue to step up our output, efficiency, and productivity across business segments to raise the bar of performance, growth, and value delivery to all our stakeholders. In doing so, we shall follow a transparent and ethical approach, which is an integral component of our business strategy. With the ISO 37301:2021 certification received for the Company?s compliance management during the year, we have reinforced our commitment to strong corporate governance principles.

We are well positioned and fully geared to execute our plans and attain our short and long term goals. Over the past few years, we have humbly accepted the thought leadership role entrusted to us by the industry. The responsibility is an endorsement of our capability and capacity to bring about meaningful transformation in the difficult and complex business of mining, to make it more relevant to the contemporary needs of the international zinc market. The election of our CEO,

Mr. Arun Misra, as the new acting Chairman of the International Zinc Association (IZA) gives us another opportunity to represent the industry constructively on the global platform. His appointment is a matter of great pride as he is the first Indian and Asian to hold this prestigious position. Hindustan Zinc is well positioned to deliver on the important responsibility that has come with this honour.

Before I conclude, I would like to congratulate all our partners, shareholders, investors, and others on the remarkable accomplishments which will pave the way for Hindustan Zinc to steer its future with greater confidence and strength. We expect to see FY 2022-23 provide us many more reasons to celebrate in terms of both, operational excellence, and financial performance, as we strategically shift our focus towards pushing up the production of metal at our smelters.

I am confident that we will continue to deliver on our goals, across every aspect of our business, with your continued cooperation, the sustained support of our people, and a focussed digitalisation drive across all our mines.

^Sincerely,

   

Hindustan Zinc Ltd Company History

Hindustan Zinc Ltd, a Vedanta Group company, is the market leader in zinc, lead and sulphuric acid business. The company is India's only and the world's largest integrated producer of Zinc-Lead. They are also one of the leading Silver producers in the world. The Company is engaged in exploring, extracting and processing of minerals. HZL's operations include five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulphuric acid plants, one silver refinery plant, six captive thermal power plants and four captive solar plants in the state of Rajasthan. In addition, the Company has a rock-phosphate mine in Matoon, near Udaipur in Rajasthan and zinc, lead, silver processing and refining facilities in the State of Uttarakhand. It has wind power plants in the states of Rajasthan, Gujarat, Karnataka, Tamil Nadu and Maharashtra and solar power plants in the State of Rajasthan. Their integrated business operations span the synergistic areas of Mines (Zinc-Lead Mines); Smelters (Hydrometallurgical Zinc Smelters, Lead Smelters, Pyro Metallurgical Zinc-Lead Smelter); and Captive Power Plants (CPP). The company's core business comprises of mining and smelting of zinc and lead along with captive power generation. The company is headquartered in Udaipur, Rajasthan and has zinc-lead mines at Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar and Kayad; primary smelter operations at Chanderiya, Dariba and Debari, all in the state of Rajasthan; and finished product facilities in the state of Uttarakhand. The company's current mined metal production capacity is 1.123 Mtpa (0.913 tonnes of zinc and 0.21 tonnes of lead). With reserves and resources of 447.9 million tonnes, their exploration programme is integral to their growth and future expansions. The company also owns 505.5 MW of coal based thermal captive power plants in Rajasthan to support their metallurgical operations. Additionally, it has green power capacity of 354.59 W including 273.5 MW of wind power, 40.42 MW of solar power and 40.67 MW of waste heat power. Hindustan Zinc Ltd was incorporated from the erstwhile Metal Corporation of India (MCI) on January 10, 1966 as a Public Sector Undertaking (PSU). In April 2002, Sterlite Opportunities and Ventures Ltd (SOVL) made an open offer for acquisition of shares of the company; consequent to the disinvestment of Government of India's (GOI) stake of 26% including management control to SOVL and acquired additional 20% of shares from public, pursuant to the SEBI Regulations 1997. In August 2003, SOVL acquired additional shares to the extent of 18.92% of the paid up capital from GOI in exercise of 'call option' clause in the share holder's agreement between GOI and SOVL. With the above additional acquisition, SOVL's stake in the company has gone up to 64.92%. Thus GOI's stake in the company now stands at 29.54%. Later on SOVL was merged with Sterlite Industries India Ltd in April 2011, which in turn merged with Sesa Goa Ltd to form Sesa Sterlite Limited in August 2013. Sesa Sterlite was renamed to Vedanta Limited in April 2015. Hindustan Zinc is now a direct subsidiary of Vedanta Limited. During the year 2002-03, the company completed 32,000 tonnes of zinc debottlenecking at Debari Zinc Smelter and ViZag Zinc Smelter. Also, they completed the debottlenecking of Rampura Agucha Mine from 1.37 million tonnes per annum to 2.30 million tonnes per annum. During the year 2003-04, the company completed the 35,000 tonnes of zinc debottlenecking at Chanderiya Smelter Complex. During the year 2004-05, the company expanded the Rampura Agucha Mine from 2.30 million tonnes per annum to 3.75 million tonnes per annum. During the year 2005-06, the company commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter (Hydro I) at Chanderiya Smelter Complex. They commissioned 2 X 77 MW Captive Power Plant at Chanderiya Smelter Complex. Also, they Commissioned 50,000 tonnes per annum of Ausmelt Lead Smelter at Chanderiya Smelter Complex. During the year 2006-07, the company began production in Sindesar Khurd Mine with an initial production capacity of 0.3 million tonnes per annum. Also, they Commissioned 38.4 MW of Wind Energy Farms at Gujarat. During the year 2007-08, the company commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter (Hydro II) in a benchmark time of 20 months at Chanderiya Smelter Complex. They commissioned 80 MW Captive Power Plant at Chanderiya Smelting Complex. They completed 5,000 tonnes of zinc debottlenecking at Debari Zinc Smelter. Also, they Commissioned 50.4 MW of Wind Energy Farms at Gujarat. During the year 2008-09, the company expanded the Rampura Agucha Mine from 3.75 million tonnes per annum to 5.00 million tonnes per annum making the total mining capacity of the Company to 7.40 million tonnes per annum. They completed the 88,000 tonnes per annum zinc debottlenecking at Chanderiya Smelter Complex & Debari Zinc Smelter making the total metal production capacity to 754,000 tonnes per annum. They commissioned 80 MW Captive Power Plant at Zawar Mines. Also, they commissioned 34.4 MW Wind Energy Farms making the Company's total Wind Energy capacity to 123.2 MW. During the year 2009-10, the company expanded the Rampura Agucha Mine from 5.00 million tonnes per annum to 6.00 million tonnes per annum, increasing the total mining capacity of the Company to 8.40 million tonnes per annum. Also, they commissioned the 210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Rajpura Dariba, increasing the Zinc & Lead metal production capacity to 964,000 tonnes per annum (879,000 tonnes of Zinc and 85,000 tonnes of Lead). During the year 2010-11, the company commissioned the 1.50 mtpa concentrator at Sindesar Khurd. Also, they added 160 MW (80X2) captive power generation capacity at Dariba. In January 2011, the company announced an addition of 150 MW in our existing wind power capacity. Of this, around 135 MW has already been commissioned. The balance capacity is expected to be commissioned in Q4 FY 2012. During the year 2011-12, the company ramped-up Sindesar Khurd mine to 2.0 mtpa capacity. During the year, the company commissioned the 100 ktpa lead smelter at Dariba, increasing the lead production capacity to 185 ktpa. The company also commissioned new silver refinery, increasing the silver refining capacity to 500 tpa. The company commissioned 102 MW expansion in wind power, increasing total wind power generation capacity to around 274 MW. During the year, the company commenced underground mine development work at Rampura Agucha mine and greenfield Kayar mine. During the year 2012-13, HZL produced development ore from Rampura Agucha underground mine and Kayad underground mine. It also announced the next phase of growth plan to increase capacity to 1.2 million tonnes per annum. During the year 2013-14, HZL commissioned new roaster at Dariba. The company also commissioned the first sewage treatment plant in Udaipur which will treat 20 million litres of sewage per day. During the year 2014-15, paste fill plant at Sindesar Khurd Mine and Rampura Agucha Mine were commissioned. During the year 2015-16, HZL's Sindesar Khurd Mine achieved 3 million MT per annum production capacity. During the year, the Sindesar Khurd Mine beneficiation plant was debottlenecked to enhance its capacity from 2.0 million MT per annum to 2.75 million MT per annum. During the year 2016-17, Sindesar Khurd Mine ore production capacity was ramped up from 3.0 million MT to 3.7 million MT per annum. During the year, the Chanderiya Hydrometallurgical Zinc Smelter capacity was enhanced from 4.2 lakh metric tonnes per annum to 4.3 lakh metric tonnes per annum. The Dariba Hydrometallurgical Zinc Smelter capacity was enhanced from 2.1 lakh metric tonnes per annum to 2.2 lakh metric tonnes per annum. During the year, the company commissioned 1.5 million MT pa capacity mill at Sindesar Khurd in record 14 months. During the year, HZL successfully commissioned 16 MW of captive solar farms. In year 2017-18, the main shaft hoisting and south ventilation shaft systems were commissioned. The main shaft was equipped during the year and winder installation work began. Zawar mines achieved record ore production of 2.2 million tonnes during the year and production capacity has been ramped up to 3.0 mtpa. The existing mill capacity was debottlenecked to 2.7 mtpa. Sindesar Khurd mine achieved its target capacity of 5 million tonnes during the year. Rampura Agucha underground reached an ore production run-rate of 3.0 mtpa during year 2017-18. Capital mine development increased by 12% to 43 km in FY 2019. At Rampura Agucha underground mine, the ventilation system was commissioned earlier liberating the mine from ventilation issues. The commissioning of mid shaft loading system in October 2018 allowed waste hoisting to be done through the shaft ahead of schedule, leading to improvement in ore production. The second paste fill plant was completed ahead of schedule in Q4 and the mine is equipped with paste fill capacity to support 5.0 mtpa production. During the year 2018-19, Sindesar Khurd received environment clearance to produce 6.0 million MT of ore and 6.5 million MT of ore beneficiation. The new 1.5 mtpa mill accomplished smooth commissioning and began production in the third quarter of the year, taking the total milling capacity to 6.2 mtpa. The underground crusher and production shaft were commissioned during Q4. The new 2.0 mtpa mill was commissioned in Q4. 22 MW solar plant was completed at Rampura Agucha taking the total solar capacity to 38 MW. 25 MLD Sewage Treatment Project was commissioned at Udaipur taking the total capacity to 45 MLD. All major projects to build capacity of 1.2 mtpa mined metal were completed during the year 2019-20. Capital mine development increased by 12% to 48 km in FY 2020. At Rampura Agucha, the Shaft project was commissioned along with the associated conveyor and crusher systems and hauling from shaft through ore pass commenced in the final quarter. At Sindesar Khurd, shaft is fully integrated with mine and ore hauling was ramped up to capacity. The second paste fill plant was commissioned in June 2019, liberating the mine to operate at full production capacity. At Zawar, India's first ever dry tail stacking plant was commissioned in the second quarter, significantly reducing water consumption & land requirement and addressing tailing dam risk. At Rajpura Dariba, the existing production shaft capacity is being upgraded from 0.7 to 1.3 mtpa to debottleneck the mine and erection work commenced. RD mine has received environment clearance for expansion in April 2020 from 1.08 to 2.0 million TPA of ore production and ore beneficiation from 1.2 to 2.5 million TPA. Smelter debottlenecking to expand capacity to 1.123 mtpa was completed during the year to maintain mines/smelter synergies at higher levels of production. In year 2020-21, the first Dry Tailing Plant was commissioned at Zawar Mines. The Graphite floatation system was commissioned at Mill 3 of Sindesar Khurd Mines to enhance the smelter and boost the recovery. Back fill plants were commissioned at Zawarmala and Mochia mines. The development of North Decline (ND1) was completed at Rampura Agucha Mine. It commissioned a 10 MLD Sewage Treatment Plant (STP) plant in Udaipur. The Company completed RD Mines Shaft & Conveyor upgradation for enhancement of ore hoisting capacity in Q3 FY 2021-22. It commissioned first made-in-India emergency escape route (staircase type) in at Rajpura Dariba Underground Mine (RDM) as well as underground rescue station at Rampura Agucha Mine (RAM). It completed Miyawaki Method of Afforestation pilot project at Debari Zinc Smelter (DZS). It commissioned 5 MLD Sewage Treatment Plant (STP) in Udaipur, bringing the total Udaipur STP capacity to 60 MLD. In the area of water stewardship, Rampura Agucha Mine completed the execution of groundwater recharge intervention across 4 blocks of Bhilwara district having ground water recharge potential of 8.7 million cubic meter (MCM)/ annum. It completed installation of Dry Filtration & Paste fill plant to enable effective tailing managements by switching from Wet to Dry tailing management system. Apart from these, installation of underground ventilation fans have started to enhance the ventilation capacities and working conditions of West Mochia and North Baroi mines.

Hindustan Zinc Ltd Directors Reports

Dear Members,

We share with you our 56th Annual Report, together with the Audited Financial Statements for the year ended 31st March, 2022.

The Directors are pleased to inform that Hindustan Zinc delivered exemplary operational performance while ensuring safe operations and continued to improve on its performance of various ESG metrics. The company has taken a pro-active approach to keep its assets and people safe, while increasing engagement with the communities during challenging times.

THE YEAR IN SUMMARY

We delivered stellar results during the year touching new operational milestones. The company delivered historic-high ore production for the full year at 16.3 million MT driven by concerted efforts towards bolstering mine production across most of the mines. The company also crossed 1 million tonne mined metal production mark for the first time producing 1,017 kt of mined metal.

Mine development, registering 10% y-o-y growth, crossed 100 km mark for the 1st time in line with increasing production requirements and securing future resource base.

Rampura Agucha has successfully commissioned 2nd underground crusher along with conveyor system enabling full utilization of 3.75 Mt main shaft hoisting capacity.

The Company diligently focussed on community upliftment in the areas of Education, Sustainable Livelihoods, Women Empowerment, Health & Water, Sports & Culture, Environment and Community Assets Creation.

The Company is ranked 1st in Asia-Pacific and globally 5th in Dow Jones Sustainability Index in 2021 amongst Mining & Metal companies. (1st in environment Dimension among the metal and mining sector globally). The Company has also won the 1st Bronze Medal and has been featured in the prestigious Sustainability Yearbook for the fifth year in a row by S&P Global.

I. HEALTH, SAFETY AND ENVIRONMENT

Occupational Health & Safety Health & Safety Performance

LTIFR for the year was 0.81 as compared to 0.97 a year ago. It is with deep sadness that we report the regret of four colleagues (Business partners) in work-related incidents at our operations. These incidents happened despite continuous efforts to eliminate fatalities and attain zero-harm work environment. Thorough investigations were conducted to identify the causes of these incidents and to share lessons learnt across HZL operations, with the aim of preventing repeat or similar incidents.

There has been enhanced leadership focus on incident reporting, incident categorisation & incident investigation along with greater focus on horizontal deployment of learnings across HZL and critical risk management.

During the year, the Company commissioned first made-in-India emergency escape route (staircase type) in at Rajpura Dariba Underground Mine as well as underground rescue station at Rampura Agucha Mine, both of which will significantly improve the response time in case of an emergency. Qualitative and Quantitative Exposure Assessment is completed for all units and exposure mitigation plan is developed. 22 Digitized safety modules were launched for easy understanding of safety standard requirements.

Demonstrating the highest standards of health and safety management during the year, Chanderiya CPP and Debari both received the prestigious ‘Sword of Honour? from British Safety Council for showing excellence in the management of health and safety risks at work. Kayad Mine was also awarded the National Safety Award from the Government of India for the longest accident-free operations in the metal and mining sector as well as for the lowest injury frequency rate.

ENVIRONMENT

During FY 2021-22, waste recycling increased marginally to 31% (FY 2020-21: 30%), and water recycling rate increased to 44% in (FY 2020-21: 39%). Specific energy consumption for FY2021-22 was 48 GJ/MT of metal (FY 2020-21: 51 GJ/MT).

Hindustan Zinc commits to ‘Long-term target to reach net-zero emissions by 2050? in alignment with Science Based Targets initiative (SBTi) aiming to have clearly defined path to reduce emissions in line with the Paris Agreement goals. Company has made notable technological advancements in energy conservation. Zinc Smelter Debari has revamped the cell house and eliminated current losses through electrolytic cells by successfully replacing 600+ concrete cells with poly-concrete cells. As a result, the power rating has improved. Additionally, the turbine revamping project is certified as a carbon reduction project by VERRA (the world?s most widely used voluntary GHG program) resulting in avoidance of GHG emissions of 270,000 tCO2e per year. For decarbonizing the future of Indian mining, Hindustan Zinc has partnered with leading global manufacturers for introducing Battery Electrical Vehicles (BEVs) in its underground mines. All units of HZL are certified as ISO 50001 (Energy Management system).

Hindustan Zinc has published its first TCFD (Task Force on Climate-related financial disclosure) report during the year, adapting the TCFD framework for climate change risk and opportunity disclosure. HZL actively participated in ‘Business Leaders Group COP26? and contributed in shaping the agenda for COP26 which was held at Glasgow (UK) in Nov?21. Endeavouring towards sustainable organization, HZL enhanced the governance by establishing Board Level ESG & Sustainability Committee to overview the ESG progress of the organization.

Hindustan Zinc joined the Taskforce on Nature-Related Financial Disclosures (TNFD) forum to tackle nature- related risks. Miyawaki Method of Afforestation pilot project completed at Debari Zinc Smelter (DZS) and horizontal deployment will be done across HZL. 3-year Engagement with International Union for Conservation of Nature (IUCN) will help in development of Biodiversity Management Plan focusing No Net-Loss approach to achieve Sustainability Goals 2025.

One of the most notable achievements has been the successful commissioning of a 3,000 KLD Zero Liquid discharge plant at the Zinc Smelter Debari. The company has also commissioned 5 MLD Sewage Treatment Plant (STP) in Udaipur, bringing the total Udaipur STP capacity built by Hindustan Zinc to 60 MLD. In the area of water stewardship, Rampura Agucha Mine has also completed the execution of groundwater recharge intervention across 4 blocks of Bhilwara district having ground water recharge potential of 8.7 million cubic meter (MCM)/ annum.

Board has approved a long-term captive renewable power development plan up to a capacity of 200 MW. The project will be built under the Group captive norms and on Build Own Operate basis. The power delivery is expected to start from 2025. Hindustan Zinc?s sustainability initiatives received several accolades & endorsements during the year

• The Company is ranked 1st in Asia-Pacific and globally 5th in Dow Jones Sustainability Index in 2021 amongst Mining & Metal companies. (1st in environment Dimension among the metal and mining sector globally)

• Company won the 1st Bronze Medal and has been featured in the prestigious Sustainability Yearbook for the fifth year in a row by S&P Global.

• The company received the award for ‘Outstanding Accomplishment in Corporate Excellence and Dariba smelter received the award for excellence in Environment management? in 16th CII-ITC Sustainability Awards.

• HZL received IEI Industry Excellence Award 2021, instituted by The Institution of Engineers (India)

• HZL?s RAM and Kayad mines received 5 Star Rated Mines? award by the Ministry of Mines, Govt. of India.

• Hindustan Zinc wins at ESG India Leadership Awards - Leadership in Environment and Green House Gas Emissions Reduction Categories organized by ESGRisk.ai , India?s first ESG rating company.

• HZL has been awarded the Most Sustainable Company in the Mining Industry by World finance at their Sustainability Awards 2021

II. OPERATIONAL PERFORMANCE

Production performance

Production (kt) FY 2021-22 FY 2020-21 % change
Total mined metal 1,017 972 5%
Refined saleable metal production 967 930 4%
Refined zinc - integrated 776 715 8%
Refined lead - integrated 191 214 -11%
Saleable Silver Production (in tonnes) 647 706 -8%

Production

For the full-year, ore production was up 6% y-o-y to 16.3 million tonnes on account of strong production growth at Zawar and Sindesar Khurd mines, which were up 12% and 8% respectively. Mined metal production for FY 2021-22 was 1,017 kt compared to 972 kt in previous year

For the full year, integrated metal production was up 4% to 967 kt due to higher plant & concentrate availability. Lead production was lower on account of operating the Pyro plant at CLZS at Zinc-Lead mode rather than Lead mode. Silver production was down by 8% to 647 MT in line with lower lead metal production.

The Company generated 3,891 million units of thermal based power in FY 2021-22. Total green power generation was 720 million units as compared to 649 million units in FY 2020-21.

Sales

During the year, domestic refined zinc metal sales was 506 kt as against 437 kt last year. While export sales for the year stood at 271 kt as compared to 287 kt a year ago. The aggregate sales were higher by 7% than previous year, in line with production. Lead metal sales in the domestic market were 167 kt, while export sales were 25 kt leading to lower aggregate sales of 11% from a year ago, in line with the decrease in lead metal production. Silver sales were 647 MT in FY 2021-22, all in the domestic market and 12% lower than previous year.

III. FINANCIAL PERFORMANCE

We share with you our 56th Annual Report, together with the Audited Financial Statements for the year ended March 31, 2022.

Financial Information

(Rs in crore)

Particulars FY 2021-22 FY 2020-21
Revenue from operations (Incl. other operating income) 29,440 22,629
Other Income 1,216 1,819
Profit before depreciation, interest, tax, and exceptional item 17,441 13,491
Less: Interest 290 386
Less: Depreciation and amortisation expense 2,917 2,531
Less: Exceptional Item 134 -
Profit before tax 14,100 10,574
Less: Net tax expense 4,471 2,594
Net profit 9,629 7,980
Earnings per share, ( /share) 22.79 18.89

Revenue

The Company reported Revenue from operations including other operating income of Rs 9,440 crore, an increase of 30% y-o-y primarily on account of increase in LME prices supported by higher metal sales due to increase in production

The Other income was Rs,216 crore during the year compared to Rs,819 crore in the previous year in line with lowering rate of return in current year to 4.7% as against 7.8% in the previous year.

Production Cost

Zincs cost of production (COP), excluding royalty for FY 2021- 22 was Rs 3,511 (US$ 1,122) per tonne, higher by 18% y-o-y. The full year COP was higher impacted largely on account of higher coal prices & input commodity inflation, partly offset by higher volume, better Sulphuric Acid realizations & improved recoveries.

Operating margin

The above revenue and production cost resulted in profit before depreciation, interest and tax (PBDIT) of Rs7,441 crore in FY 2021-2, up 29% on account of higher volumes, rise in LME prices partially offset by higher coal and input commodity prices.

Net profit

Net profit was Rs ,629 crore, up 21% where in the impact of higher PBDIT was partly offset by lower investment income due to declining interest rate environment. Effective Tax rate

Cash Flows

for the year increased to 31.7% as compared to 24.5%, mainly due to end of certain tax benefits.

Earnings Per Share (EPS)

The EPS for the year was Rs 2.79 per share as compared to Rs8.89 per share in FY 2020-21.

Dividend

Interim dividend of 900%, i.e. Rs8.0 per share on equity share of Rs each amounting to Rs ,606 crore was declared in December 2021.

The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") is available on the Companys website on https://www.hzlindia.com/wp-content/uploads/ Dividend-Policy-2016.pdf

Credit Rating and Liquidity

CRISIL has reaffirmed the Companys long-term rating of AAA/Stable and short-term rating of A1+. The ratings continue to reflect the Companys low-cost operations, strong market position, efficient and integrated operations, high reserve & resource and a strong balance sheet.

The Company follows a conservative investment policy and invests in high quality debt instruments. As on March 31, 2022, the Companys net cash and cash equivalents was Rs7,966 crore as compared to Rs 5,130 crore at the end of FY 2020-21 and is invested in high quality debt instruments.

(Rs in crore)

Particulars FY 2021-22 FY 2020-21
Opening Cash* 22,308 22,207
Add: EBITDA** 16,289 11,739
Add: Net Interest Income 604 1,258
Less: Income Tax 2,391 1,755
Less: Dividend 7,606 15,972
Less: Capital Account Payments 2,998 2,481
Add: Borrowings (4,315) 6,525
Add: (Increase)/Decrease in Working Capital & Others (1,102) 787
Closing Cash* 20,789 22,308

Gross Working Capital

Gross working capital represented by inventory, trade receivables and other current assets increased from Rs ,180 crore to Rs,132 crore as at March 31, 2022 primarily due to increase in raw material inventory, trade receivables and coal stock for ensuring coal security and to combat any potential price increase. The working capital cycle was 40 days in FY 2021 -22 as compared to 36 days in FY 2020-21.

Gross Block

The gross block during the year increased from Rs 4,228 crore to Rs 7,455 crore. This was largely due to the ongoing mining projects and other sustaining capex.

Capital Employed

The total capital employed as at March 31, 2022 was Rs 6,315 crore, as compared to Rs 7,183 crore at the end of previous fiscal year.

Contribution to the Government Treasury The Company has contributed Rs 5,676 crore during FY 2021-22, in terms of royalties and taxes to the Government treasury, aggregating to approximately 53% of the total operating revenue.

IV. RESERVE & RESOURCE (R&R)

On an exclusive basis, total ore reserves at the end of FY 2021-22 stood at 161.21 million tonnes (net of depletion of FY 2021-22 production of 16.34 million tonnes) and exclusive mineral resources totalled 286.73 million tonnes. Total contained metal in Ore Reserves is estimated at 9.57 million tonnes of zinc, 2.45 million tonnes of lead and 298.4 million ounces of silver. The Mineral Resource contains approximately 13.18 million tonnes of zinc, 5.86 million tonnes of lead and 576.3 million ounces of silver. At current mining rates, the R&R underpins metal production for more than 25 years.

V. PROJECTS

In HZL journey of 1.25 mtpa MIC expansion, some of key projects are under execution at RD Mines complex. We have successfully completed RD Mines Shaft & Conveyor upgradation for enhancement of ore hoisting capacity in Q3 FY 2021-22. In line with our ESG journey, we have completed installation of Dry Filtration & Paste fill plant to enable effective tailings managements by switching from Wet to Dry tailing management system. Commissioning of plant will start by Q1 of FY 2022-23. For enhancing metal recovery, we have placed order for RD Beneficiation plant revamping, enabling better Pb, Zn & Ag recoveries and improving plant reliability by replacing obsolete Grinding, Floatation & Filtration circuits. Civil construction is already ongoing and plant is scheduled to be commissioned in Q3 FY 2022-23.

At Zawar, in order to enhance the ventilation capacities and working conditions of West Mochia and North Baroi mines, installation of underground ventilation fans has started. For increasing the capacity of Tailing storage Facility, design and stabilisation studies have been conducted and the dry stacking is under progress.

Treatment of Raw Zinc Oxide (RZO) in RKD circuit (component of overall Fumer project) continued during the entire year. For the Fumer commissioning, visa process is in advanced stages for the technical experts. The Fumer commissioning is targeted for completion by early FY 2022-23.

VI. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Companys CSR initiatives passionately focuses on community upliftment by strengthening the local economy and improving the quality of life by working in the areas of Education, Sustainable Livelihoods, Women Empowerment, Health, Water & Sanitation, Sports & Culture, Environment & Safety and Community Assets Creation.

During the year, the Company spent Rs90.92 crore on CSR programmes more than the 2% of CSR mandate which was Rs86.68 crore. For further details, refer Annexure III and Business Review section of this Annual Report

VII. DIRECTORS

Government of India, Ministry of Mines appointed Ms. Nirupama Kotru in place of Ms. Yatinder Prasad w.e.f. July 26, 2021. Ms. Veena Kumari Dermal also appointed as director w.e.f. July 29, 2021.

The companys policy on appointment of Directors and their remuneration is available on the Companys website https://www.hzlindia.com/wp-content/uploads/ HZL-Nomination-Remuneration-Policy-20.1.2020.pdf

VIII. MANAGEMENT DISCUSSION AND ANALYSIS

The Our Operational Performance section of this Annual Report gives a detailed account of the Companys operations and the market in which it operates, including its initiatives in the areas of human resources, sustainability and risk management.

IX. CORPORATE GOVERNANCE AND BUSINESS RESPONSIBILITY REPORT

As a listed company, necessary measures are taken to comply with the listing agreements of the Stock exchanges. A report on Corporate Governance, along with a certificate of compliance from the statutory auditors, forms part of this report. Further, Business Responsibility and Sustainability Report describing the initiatives taken by the Company from an Environmental, Social and Governance perspective, also forms a part of this report. In order to maintain transparency and efficient governance, various disclosures as required under Sections 134 and 135 of the Companies Act, 2013 are annexed to this report or covered in the Corporate Governance Report, such as Related Party Transactions; Information and details on conservation of energy, technology absorption, foreign exchange earnings and outgo; extract of annual return; constitution of various Board level Committees; Annual Report on CSR, etc.

X. DIRECTORS RESPONSIBILITY STATEMENT

As required under Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability confirm that:

i. In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures;

ii. t hey have selected such accounting policies and applied them consistently and made judgements & estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profits of the Company for that period.

iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv. the annual accounts have been prepared on a Going Concern basis.

v. they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;

vi. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively. Based on the framework of internal financial controls and compliance systems established and maintained by the Company, the work performed by the internal, statutory and secretarial auditors and external consultants, including the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the audit committee, the Board is of the opinion that the Companys internal financial controls were adequate and effective during FY 2021-22.

XI. BOARD EVALUATION

The Nomination and Remuneration Committee has devised a criteria for evaluation of the performance of the Directors including the Independent Directors. The said criteria provides certain parameters like attendance, acquaintance with business, communication inter se between board members, effective participation, domain knowledge, compliance with code of conduct, vision and strategy, benchmarks established by global peers etc., which is in compliance with applicable laws, regulations and guidelines.

During the year, Company engaged Deloitte Haskins & Sells LLP for carrying out the performance evaluation of all the Board members, Board as a whole and various committees.

The criteria used by them basis which the individual director performance evaluation has been done included:

• preparation and participation in Board meetings,

• personality and conduct,

• quality of value added,

• understanding of the Companys mission, vision, philosophy and strategy,

• understanding of the industry and the business in which the Company operates,

• independence of judgement,

• independent thinking ability to bring a divergent view, etc.

CEO & Whole Time Director evaluation was more focused towards Company performance and leadership, team building and management succession, edge in execution of strategy formulated by the Board.

The evaluation of the various Board Committees was more focused towards:

• Its charter/ terms of reference

• Number of meetings held and its appropriateness

• Timely availability of information

• Committee composition

• Committee decisions are adequately conveyed and implemented

• Meetings are conducted in a manner that ensures open communication, meaningful participation and timely resolution of issues

• Independency of committee to contribute effectively

Assessment of each director on the board is done by the other directors including that of various committees. The consolidated outcome from all the directors is prepared by Chairman of nomination and remuneration committee and presented to the board of directors. All the directors had been rated excellent and overall finding shows that the Board and its various committees are working well. All Board members come with very strong background and add lot of value to the meetings by making them participative and engaging.

XII. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The details in respect of internal financial control and their adequacy are included in the Management Discussion and Analysis, which is a part of this report.

XIII. AUDITORS

The Company had appointed M/s. S. R. Batliboi & Co. LLP, Chartered Accountants, as Statutory Auditors of the Company to conduct audit of Financial Statements for the year ended March 31, 2022. The Notes to Financial Statement referred to in the Auditors Report are self-explanatory and do not call for any further comments. The Auditors Report does not contain any qualification or reservation. The only adverse remark in CG certificate is for not fulfilling the criteria of adequate number of Independent Directors including woman independent director and for which we are in touch with the two major shareholders, which is self-explanatory.

Pursuant to the orders issued by the Central Government under Section 148 of The Companies Act, 2013, the Board has appointed M/s. K G Goyal & Co. Cost Accountants for conducting the audit of the cost accounting records maintained by the Company for all its products and M/s. Vinod Kothari & Company, Company Secretaries as the Secretarial Auditors for conducting the Secretarial audit of the Company. Their report does not contain any qualification or reservation. The only adverse remark is for not fulfilling the criteria of adequate number of Independent Directors including woman independent director, for which we are in touch with the two major shareholders and other procedural delays due to COVID-19, which are self-explanatory.

As per provisions of Section 136 of the Companies Act, 2013, the Annual Report including the Audited Accounts for the year will be sent to all the Shareholders whose e-mail addresses are registered.

XIV. VIGIL MECHANISM

The Company has a Whistle Blower Policy and has established the necessary vigil mechanism for directors and employees in confirmation with Section 177(9) of the Act and Regulation 22 of Listing Regulations, to report concerns about unethical behaviour. This Policy is available on the Companys website on https://www. hzlindia.com/wp-content/uploads/HZL-WHISTLE- BLOWER-POLICY-19.10.2015.pdf

XV. ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31, 2022 is available on the Companys website https://www. hzlindia.com/investors/reports-press-releases/

XVI. PARTICULARS OF EMPLOYEES

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are attached to this report. In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of employees drawing remuneration in excess of the limits set out in the said Rules forms part of the Report. However, having regard to the provisions of the first proviso to Section 136(1) of the Companies Act, 2013, the Annual Report excluding the aforesaid information is being sent to the Members of the Company. The said information is available for inspection at Registered Office of the Company during working hours. Any member interested in obtaining such information may write to the Company Secretary at the registered office and the same will be furnished on request. Further the details are also available on the Companys website: www.hzlindia.com .

In line with the internal guidelines of the Company, no payment is made towards commission to the Executive Director of the Company, who is in full time employment with the Company.

XVII. INTEGRATED REPORT

The Company being one of the top companies in the country in terms of market capitalization, has voluntarily provided Integrated Report, which encompasses both financial and non-financial information to enable the Members to take well informed decisions and have a better understanding of the Companys long-term perspective. The Report also touches upon aspects such as organisations strategy, governance framework, performance and prospects of value creation based on the six forms of capital viz. financial capital, manufactured capital, intellectual capital, human capital, social and relationship capital and natural capital.

XVIII. ACKNOWLEDGEMENTS

We sincerely thank our customers, vendors, investors, business partners, worker unions, auditors and bankers for their continued support during the year. We place on record our appreciation of the contribution made by employees at all levels. Our continued success was made possible by their hard work, solidarity, commitment and support. We thank the Government of India, the State Governments of Rajasthan, Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu, Maharashtra and Uttarakhand for their continued support.

For and on behalf of the Board of Directors
ARUN MISRA ANJANI K AGRAWAL
CEO & Whole-time Director Director
DIN : 01835605 DIN :08579812
Place: Udaipur Place: Mumbai

   

Hindustan Zinc Ltd Company Background

Priya Agarwal
Incorporation Year1966
Registered OfficeYashad Bhawan,
Udaipur,Rajasthan-313004
Telephone91-294-2420813-15/2525621/2529181-5,Managing Director
Fax91-294-2529102-4/6443/5763/9722
Company SecretaryRajendra Pandwal
AuditorS R Batliboi & Co LLP
Face Value2
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarKFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Hindustan Zinc Ltd Company Management

Director NameDirector DesignationYear
Navin AgarwalNon-Exec & Non-Independent Dir2022
Rajendra PandwalCompany Secretary2022
Farida M NaikNominee (Govt)2022
Arun MisraWhole Time Director & CEO2022
Akhilesh JoshiNon-Exec. & Independent Dir.2022
Anjani Kumar AgrawalNon-Exec. & Independent Dir.2022
Nirupama KotruNominee (Govt)2022
Veena Kumari DermalNominee (Govt)2022
R KannanAdditional Director2022
Priya AgarwalChairperson & Additional Direc2022

Hindustan Zinc Ltd Listing Information

Listing Information
BSE_500
BSE_200
BSEDOLLEX
CNX500
BSEMETAL
CNXMIDCAP
CNXMETAL
CNX200
BSEALLCAP
BSELARGECA
BSEMETERIA
LMI250
BSEQUI
BSE100LTMC
NFTYLM250
NFTYMC150
NFTYMSC400
NF500M5025

Hindustan Zinc Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Zinc and Lead Concentrate DMT00015715
Silver Kg 0002444
Wind Power Generation MW 000173
Sale of Scrap NA 000100
Other Operating Revenues NA 00070
Export Benefits NA 00059
Sulphuric Acid MT 0000
Others NA 0000
Sale of Products NA 0000
Copper Cathodes MT 0000
Lead Metals MT 0000
Zinc Metals MT 0000
Cadmium Ingots MT 0000

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