The financial year 2018 was a landmark year marked by record operational and financialperformance. The Company delivered highest ever ore mined metal refined zinc-lead andsilver production driven by its relentless pursuit of efficiency and productivity.
Further the buoyancy in zinc market enabled an all-time high EBITDA and Net Profit forthe year. We continue to maintain our position as one of the lowest cost producersglobally even though the recovery in commodity prices led to higher operating costs andoffset the leverage of higher volume and cost optimisation initiatives. The Board declareddividends of 400% amounting to Rs 4068 Crore including dividend distribution tax duringthe year. Rampura Agucha open pit mine which was commissioned on March 25 1991 deliveredits final ore on March 25 2018. For me it was not just another mine but a manifestationof excellence. Over a period of 27 years it produced around 79 million MT of ore becomingthe world's largest zinc mine. It was an incredible journey of passion and performance.The world economy has recovered from a period of tepid growth and is in cyclical upswingwith revival in world trade and recovery in commodity prices. The recovery is broad-basedacross developed and emerging economies and the overall market sentiments are positive. InIndia growth during the year was impacted by temporary disruptions from GST roll-out andthe fallout from demonetisation but it is heartwarming to see a strong pick up ininvestment activity in the second half of the year. We are enthused by the ongoingrestructuring and consolidation in domestic steel industry. With zinc metal in shortsupply due to systematic underinvestment over the last several years the outlook for zincprice remains buoyant. To prepare the Company for higher performance we conducted anorganisation restructuring during the year leading to formation of Independent BusinessUnits with the objective of cascading empowerment to drive ownership at the level ofaction.
Hindustan Zinc was ranked 11th overall globally and 3rd inEnvironment dimension in Dow Jones Sustainability Index in Mining and Metal industry.
I am proud to mention that about 27% of enabling roles in our Company are performed bywomen who now form 12% of our employee base and we intend to improve it further.
Our sustainability strategy sets out our resolve to protect and preserve our sociallicense to operate a license that has remained unbroken for the last 5 decades. Thehealth and safety of our people is our top priority and our goal is zero harm'.Despite our best efforts we had two fatalities at our project sites which isunacceptable. We are committed to eliminate all unsafe acts and behaviours in ouroperations and project sites. In the last 5 years injury rate has declined by 69% andreporting of incidents has increased manifold yet we have a long way to go in our safetytransformation journey.
I am delighted that Hindustan Zinc was ranked 11th overall globally and 3rdin Environment dimension in Dow Jones Sustainability Index in Mining and Metal industry.We are the only Indian mining company and one of the nine Indian companies that have beenincluded in RobecoSAM Sustainability Yearbook 2018. During the year we almost doubled ourCSR spending to Rs 92 Crore touching the lives of half a million people and positivelyimpacting more than 100000 households. Our _rst and foremost commitment is towards ourcommunities for whom we have prioritised our programs and involved strong and crediblelocal partners to maximise impact. Over a third of our CSR budget is spent on educationwhere we have programmes for all age groups from creating new age Anganwadis(Nandghars') running schools support for differently abled children to coachinghigh school students and financially supporting meritorious and needy students for highereducation. We also set up a residential Football Academy last year along with 58 communityacademies including 4 centers exclusively for girls across our 5 districts. India ispoised for stupendous growth on the back of a young population globalisationdigitisation and reforms which will fuel higher demand for commodities for developinginfrastructure and supporting higher consumption. In this context we are proud to beassociated with Make in India' initiative with our plans for higher metal productionin future. During the year we contributed Rs 9301 Crore to the Government treasurythrough royalties taxes and dividends which is 42% of our revenues.
The journey towards 1.2 million MT production that started in 2013 is now in its finalstages and expected to be achieved in FY 2020. Our strategic vision is to grow our outputto 1.5 million MT per annum and our silver portfolio to 1500 MT. I am pleased to notethat the Board has approved the _rst phase of this vision to grow our mining capacity to1.35 mtpa and matching smelting capacity over the next three years. With one of the mostsuccessful global transitions from primarily an open-cast to a fully underground miningcompany I believe the Company's growth trajectory will transform in the years ahead.
|Agnivesh Agarwal |