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Hindustan Zinc, a Vedanta Group company, reported a 7 per cent increase in its net profit at Rs 1,640 crore for the quarter ended September 30 against Rs 1,540 crore in the corresponding period last year, on higher sales and rupee depreciation. Revenues were up 25 per cent at Rs 3,521 crore in the quarter.
Announces dividend
The company announced an interim dividend of Rs 1.60 a share. EBITDA (earnings before interest, tax, depreciation and amortisation) increased 28 per cent to Rs 1,904 crore. The higher earning was driven by higher sales and rupee depreciation, though the benefits were partially offset by lower silver price, said the company.
Zinc production cost before royalty during the quarter was up 8 per cent at Rs 50,522 per tonne, but was lower by three per cent in dollar term at $816.
Revenues from zinc and lead were up 39 per cent and 33 per cent at Rs 2,570 crore and Rs 453 crore, respectively. Silver sales were down 14 per cent to Rs 388 crore. Mined metal output was up 16 per cent at 222,000 tonnes.
Refined zinc production rose 28 per cent to 194,814 tonnes in the September quarter due to improved operational efficiencies, while lead output jumped 29 per cent to 28,978 tonnes due to better utilisation of smelter capacity. Saleable silver production was up 14 per cent at 83 tonnes.
Zinc prices on the London Metal Exchange were flat at $1,859 a tonne, while lead prices increased 7 per cent to $2,102 a tonne during the quarter. Silver prices dropped 28 per cent to $21.4 an ounce at the London Bullion Market Association. The rupee depreciated 13 per cent against the dollar to 62.13 during the three-month period.
The company has shut production at its Vizag smelter and paid Rs 61 crore as voluntary retirement benefit to all its employees.
As of the September quarter, the company has reserves of Rs 23,632 crore on its books.
The company's scrip rose 0.5 per cent to Rs 134.5 on Tuesday on the BSE.
>suresh.iyengar@thehindu.co.in
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