Hind Zinc Q4 Net Up 8% to .₹ 2,149 cr
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.