Hindustan Zinc, a Vedanta Group company, reported a 27 per cent jump in its net profit in the December quarter at Rs 1,613 crore (Rs 1,274 crore) on higher lead and silver production.
Its sales realisation was up 14 per cent at Rs 3,140 crore (Rs 2,747 crore) due to rupee depreciation against the dollar.
Mined metal production was up 11 per cent at a record 233,000 tonnes.
Silver production more than doubled to 117 tonnes, while lead output was up 11 per cent at 32,000 tonnes. Refined zinc production in Q3 was down 10 per cent at 171,000 tonnes.
Capacity EXPANSION
Zinc metal production cost, excluding royalty, has risen 11 per cent to Rs 44,900 a tonne. The positive impact of operational efficiencies and lower coal prices was more than offset by increase in commodity prices, higher excavation and lower by-product credits, said the company in a release on Friday.
The company will invest about Rs 1,375 crore a year over the next six years to increase mining capacity to 1.2 million tonnes (mt) a year from one mt a year.
It intends to develop a 3.75-mt a year underground mine at Rampura Agucha and expanding Sindesar Khurd mine from 2 mt a year to 3.75 mt a year, Zawar mines from 1.2 mt a year to 5 mt a year, Rajpura Dariba mine to 1.2 mt a year and Kayad mine to one mt a year.
It will also involve opening up of a small new mine at Bamnia Kalan in Rajpura Dariba belt.
Growth projects
HZL has been conducting exploration, which increased net reserve and resource across all mines to 332.3 mt in FY’12.
The projects will be completed in six years and the benefit of growth projects will start flowing in from the third year, even as projects will continue till FY’19, the company said.
Agnivesh Agarwal, Chairman, said the next phase of growth projects would deliver superior performance in the future and create long-term value for stakeholders.
As of December quarter, the company has cash and cash equivalents of Rs 19,282 crore.
Shares of the company were down two per cent at Rs 130 on Friday.