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Hindustan Zinc drops amid volatility after weak Q1 results

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Capital Market
Last Updated : Jul 21 2014 | 11:52 PM IST

Hindustan Zinc lost 0.64% to Rs 164.25 at 15:23 IST on BSE after net profit declined 3% to Rs 1618 crore on 1% growth in revenue to Rs 2963 crore in Q1 June 2014 over Q1 June 2013.

The Q1 result was announced during market hours today, 21 July 2014.

Meanwhile, the S&P BSE Sensex was up 69.34 points or 0.27% at 25,710.90.

On BSE, so far 1.29 lakh shares were traded in the counter as against average daily volume of 2.85 lakh shares in the past two weeks.

The stock was volatile. The stock lost as much as 1.24% at the day's low of Rs 163.25 so far during the day. The stock rose as much as 1.2% at the day's high of Rs 167.30 so far during the day.

Hindustan Zinc attributed the marginal rise in top line during the quarter to higher zinc LME price & premium and rupee depreciation, offset by lower volumes.

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Hindustan Zinc's EBITDA declined 10% to Rs 1352 crore in Q1 June 2014 over Q1 June 2013, due to lower production volumes and higher production cost, the company said in a statement.

The impact of lower EBITDA was partly offset by strong other income during the quarter, Hindustan Zinc said.

Throwing light on the status of the company's expansion projects, Hindustan Zinc said that during the quarter, total mine development increased by 15%. Rampura Agucha and Sindesar Khurd shaft projects are progressing well. India's first paste-fill plant is under commissioning at Rampura Agucha mine. Mine design and planning for further deepening of the pit at Rampura Agucha is under progress to explore extension of mine life, Hindustan Zinc said in a statement.

As on 30 June 2014, the company had cash and cash equivalents of Rs 26272 crore, out of which Rs 22172 crore was invested in mutual funds, Rs 2049 crore in bonds and Rs 2000 crore were in fixed deposits with banks. The company follows a conservative investment policy and invests in high quality debt instruments, Hindustan Zinc said in a statement.

Hindustan Zinc is one of the largest integrated producers of zinc-lead with a capacity of 1.0 million MT per annum and a leading producer of silver.

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First Published: Jul 21 2014 | 3:22 PM IST

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