Hind Zinc Q4 Net Up 8% to .₹ 2,149 cr

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Kolkata: Hin­dus­tan Zinc has re­ported a 25% year-on-year drop in its rev­enues for the quar­ter ended March at .₹ 3,070 crore due to lower vol­umes and lower zinc prices on the bench­mark Lon­don Metal Ex­change. Higher other in­come due to mark to mar­ket gains on in­vest­ments, how­ever, helped the com­pany re­port a 7.6% rise in its net profit for the fourth quar­ter at .₹ 2,149.1 crore. For the year ended March, HZL rev­enues went down 3.8% at .₹ 14,226.24 crore against .₹ 14,788.39 crore in FY15 mainly due to lower LME zinc and sil­ver prices though it was off­set by higher vol­umes and ru­pee de­pre­ci­a­tion. Net profit was marginally lower at .₹ 8,166.58 crore against .₹ 8,178 crore in the pre­vi­ous year.

An­a­lysts said ris­ing zinc prices au­gurs well for the com­pany.

“Zinc makes up for a sub­stan­tial part of the com­pany’s rev­enues, so a 19% drop in LME prices dur­ing the quar­ter af­fected it. How­ever, the prices have started im­prov­ing and this will im­prove the out­look go­ing for­ward,” San­jay Jain, an­a­lyst at Moti­lal Oswal Se­cu­ri­ties said.

HZL shares closed at .₹ 173.95, down 0.4% on the BSE on Thurs­day.

Cost of pro­duc­tion of zinc metal per tonne be­fore roy­alty dur­ing the fourth quar­ter was .₹ 58,044 ($853), higher by 4% from a year ago in dol­lar terms and 14% higher in ru­pee terms, an HZL state­ment said.

This was due to lower pro­duc­tion vol­umes from Ram­pura Agucha open cast mine in ac­cor­dance with mine plan. The com­pany said re­fined zinc metal pro­duc­tion dur­ing the quar­ter was 29% lower y-o-y, while in­te­grated lead and sil­ver metal pro­duc­tion in­creased by 16% and 65%, re­spec­tively, against the pre­vi­ous cor­re­spond­ing quar­ter, pri­mar­ily due to higher vol­umes from HZL’s sil­ver-rich Sin­de­sar Khurd mine.

HZL’s pro­duc­tion of re­fined metal dur­ing the year was higher than that of mined metal pri­mar­ily due to con­ver­sion of ex­ist­ing mined metal in­ven­tory and im­proved smelter ef­fi­cien­cies. In­te­grated zinc, lead and sil­ver metal pro­duc­tion in­creased by 5%, 33% and 58%, re­spec­tively, in FY16 from the year be­fore.

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