Hindustan Zinc, part of the Vedanta Group, reported a 13 per cent fall in net profit in the March quarter, at ₹1,881 crore (₹2,166 crore). The company said the decline was due to a dip in production and higher operational cost.
Net sales fell 7 per cent to ₹3,589 crore (₹3,850 crore).
The company has announced a final dividend of ₹1.90 per share, taking the total dividend for the year to ₹3.50, the highest ever.
It has drawn a capital expenditure of ₹1,500 crore ($250 million) for this fiscal.
Total expenses during the quarter 10 per cent to ₹2,092 crore (₹1,908 crore).
Production cost up The cost of zinc production during the quarter shot up 24 per cent to ₹55,467 ($899) a tonne and was 8 per cent higher in dollar terms.
The increase was largely due to a 14 per cent depreciation of the rupee against the dollar, lower mined-metal production, and higher mine development costs, said the company.
Mined-metal production during the quarter was down 23 per cent at 200,000 tonnes (260,000 tonnes).
Silver sales fall 25% Zinc and lead production was down 1 per cent and 2 per cent at 179,000 tonnes and 29,000 tonnes, respectively.
Silver sales were down 25 per cent at 68,000 tonnes.
For the financial year ended March, the company’s net profit was flat at ₹6,905 crore (₹6,899 crore).
Sales were up 7 per cent at ₹13,459 crore (₹12,526 crore).
The transition Agnivesh Agarwal, Chairman, Hindustan Zinc, said the year marked the beginning of a transition from open-cast to underground mining at Rampura Agucha in Rajasthan.
The company had cash and cash equivalent of ₹25,535 crore as of March 2014.
On Monday, shares of the company inched up 0.46 per cent to close at ₹132.