Hin­dus­tan Zinc’s Net Profit Rises 26%

The Economic Times - - Companies - Our Bureau

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.

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