Hindustan Zinc, a Vedanta Group company, has reported a marginal drop in net profit despite highest ever lead and silver production. The drop in profit was due to a dip in realisations and higher operational cost.
Refined lead output was highest ever at 28,804 tonnes, up 102 per cent as compared with the corresponding prior quarter. This was primarily due to volume contribution from the newly commissioned 100,000-tonne Dariba lead smelter, which is currently under ramp-up, the company said in a press release.
Record output
Refined silver production increased 37 per cent to the highest ever level of 57,595 kg due to contribution from the new 350 tonnes per annum silver refinery commissioned during the quarter. Zinc production rose seven per cent at 190,946 tonnes on account of improved operational efficiencies.
REALISATIONS DOWN
The average zinc LME (London Metal Exchange) prices dropped 18 per cent to $1,897 a tonne ($2,315 a tonne), while that of lead was down 17 per cent at $1,983 a tonne ($2,390 a tonne). The average silver price increased substantially to $31.87 an ounce ($26.43 an ounce).
The positive impact of increased volumes and rupee depreciation was partially offset by the decline in LME prices, the company said in a press release. The zinc metal cost, without royalty, during the quarter was at Rs 40,300 a tonne, up 13 per cent.
As on December 31, 2011, the company had cash and cash equivalents of Rs 16,255 crore.
Mr Agnivesh Agarwal, Chairman, Hindustan Zinc, said “We remain committed to enhance stakeholders' wealth driven by large reserves and resources base, strong liquidity position and cash flow generation, and low cost operations.”
The company's shares on BSE were up 0.24 per cent at Rs 127 on Friday.