Hindustan Zinc, a Vedanta Group company, has reported a 42 per cent rise in net profit at Rs 1,345 crore (Rs 949 crore) for the quarter ended September 30.
The increase is due to higher production and improved metal prices. Revenues were up 20 per cent to Rs 2,593 crore (Rs 2,163 crore).
Mr Agnivesh Agarwal, Chairman, said the company has emerged the world's largest integrated zinc and lead producer and ranks among the lowest cost producers of these metals. “We are consistently evaluating opportunities for further growth, on the back of our large reserves and resource base, low-cost operations, strong liquidity position and cash flow generation,” he added.
The company has announced an interim dividend of Rs 1.50 a share. The record date for the payment of interim dividend is October 28.
“Mined metal production in Q2 was 209,676 tonnes, up 2 per cent. Refined zinc output was up 5 per cent at 184,816 tonnes, primarily on account of improved operational performance at our hydro smelters.”
Refined lead production jumped 5 per cent to 17,005 tonnes due to contribution from the new 100,000-tonne Dariba lead smelter, which was commissioned and capitalised during the quarter.
Refined silver production was up 12 per cent at 49,274 kg. The increase was a result of higher silver content in the mined ore and improved plant efficiencies, the company said.
The zinc metal production cost, without royalty, during the quarter was marginally higher at Rs 38,800 a tonne. The positive impact of operational efficiencies was more than offset by the impact of increase in commodity prices.
The average zinc price on LME was $2,224 a tonne ($2,013 a tonne) and lead was being quoted at $2,459 a tonne ($2,032 a tonne). The average silver price on London Bullion Market Association increased to $38.80 an ounce from $18.97.
In the last seven years, exploration activities have added 167 million tonnes. “We are exploring over 6,200 sq.km in 10 ‘reconnaissance permits'. Our total reserves and resources base at the end of last fiscal was 313.2 million tonnes containing 34.7 million tonnes of zinc-lead metal and 885 million ounces of silver, ensuring long mine life of 25 plus years,” the company said in a press release.
As on September 30, Hindustan Zinc had cash and cash equivalents of Rs 16,229 crore, of which Rs 10,324 crore was invested in debt mutual funds and Rs 5,905 crore were in fixed deposits with banks.
The stock on the BSE was up 2 per cent at Rs 121.25 on Wednesday.