Performance analysis – Jahanvi Vaghela
Hindustan Zinc Limited is an Indian integrated mining and resources producer of zinc, lead,
silver and cadmium. It is a subsidiary of Vedanta Limited. HZL is the world's second largest
zinc producer. Its FY2020 revenues stood at ₹18,561 crore. They are one of the world's
largest integrated producers of zinc and are among leading global lead and silver producers.
Year 2020 2019 2018 2017 2016
Sales 18,561 21,118 22,084 17,273 15,463
Sales
25,000
22,084
21,118
20,000 18,561
17,273
15,463
15,000
Sales
10,000
5,000
0
2020 2019 2018 2017 2016
year
As we can analyse from the chart that trendline of the total sales of Hindustan Zinc Limited
is constantly upwards from 2016 to 2020 but there is decrease in the sales of company in
2019 and 2020. The main reason behind this is declining in lead lower metal premium
prices, partly offset by rupee depreciation and impact of covid-19 pandemic.
Annual Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Net Profit 6,805 7,956 9,276 8,316 8,175
10,000
PROFIT
9,276
9,000 8,316
7,956 8,175
8,000
7,000 6,805
6,000
Sales
5,000
4,000
3,000
2,000
1,000
0
2020 2019 2018 2017 2016
year
Net profit is parameter which representing all the income of a company. The net profit of
the company is increasing at the increasing rate from 2016 to 2018 but in the year 2019 and
2020 there is downward trend line. The main reason behind this is decreasing in sales of HZL
other than that increase in depreciation and employee benefit expenses effect profit.
By analysing this whole report of HZL we can conclude that the performance of
company is good but the globally and economically reasons which adversely effect to the
performance of company.