Hindustan Zinc’s Net Profit Rises 26%
Kolkata: Hindustan Zinc has reported a 26% yearon-year increase in its quarterly net profit, driven by a surge in zinc prices and higher metal production.
For the quarter ended December, net profit stood at .₹ 2,320 crore while revenue jumped 45% from the yearago quarter to .₹ 5,348 crore, the company said on Friday. The revenue increase was mainly on account of higher volumes, higher metal prices and rupee depreciation.
Hindustan Zinc’s earnings missed analysts' expectations of a net profit of .₹ 2,400 crore. The company did not declare a dividend. Chairman Agnivesh Agarwal said, “2016 was a strong year as zinc prices surged over 55% during the quarter compared to a year ago. With no new zinc mines being commissioned in near future, the market outlook remains positive for 2017 also.” The company also reported a five-year CAGR of 38% in underground mined metal production. Hindustan Zinc said its revenue grew 40% qo-q primarily on account of higher volumes and higher zinc and lead LME prices. During the quarter, EBITDA was at .₹ 2,757 crore, up 33% q-o-q and up 88% y-o-y. The impact of higher EBITDA was partly offset by higher depreciation and tax in both periods, while investment income was sequentially lower on account of lower mark-to-market gains.