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Hindustan Zinc gains after strong Q3 earnings

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Capital Market
Last Updated : Jan 20 2015 | 9:45 AM IST

Hindustan Zinc rose 1.19% to Rs 162.30 at 9:15 IST on BSE after net profit rose 38.11% to Rs 2379.37 crore on 20.42% rise in total income to Rs 4665.29 crore in Q3 December 2014 over Q3 December 2013.

The Q3 result hit the market after market hours yesterday, 19 January 2015.

Meanwhile, the S&P BSE Sensex was up 95.39 points or 0.34% at 28,357.40.

On BSE, so far 28,000 shares were traded in the counter as against average daily volume of 1.61 lakh shares in the past two weeks.

The stock hit a high of Rs 166 and a low of Rs 162.90 so far during the day.

The increase in revenue in Q3 December 2014, was driven by higher zinc LME and lead & silver metal volumes, partly offset by lower silver price and refined zinc volume. EBITDA rose 14% to Rs 2089 crore in Q3 December 2014 over Q3 December 2013 as a result of better revenues and lower cost of production.

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The company's cash and cash equivalents increased by5% from the end of Q2 September 2014 and 20% from Q3 December 2013. As on 31 December 2014, cash and cash equivalents were Rs 28980 crore, out of which Rs 26687 crore was invested in mutual funds and Rs 2,283 crore in bonds. The company follows a conservative investment policy and invests in high quality debt instruments.

Sindesar Khurd mine expansion is proceeding better than planned, although Rampura Agucha underground shaft project is behind schedule. The board has approved deepening of the open cast mine by 50 metres which will extend mine life to FY 2019-20 and ensure a stable transition from open pit to underground at Rampura Agucha. The pre-stripping work will start in the current quarter, Hindustan Zinc said.

Mr. Agnivesh Agarwal, Chairman said, "We continued to deliver solid performance in the third quarter. Zinc market fundamentals are favourable and we remain committed to increasing production and controlling costs to drive profitability of our operations. Looking ahead, we believe that opportunities lie in our ability to execute against our long-term strategic priorities, which will continue to differentiate Hindustan Zinc and drive shareholder value."

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: Jan 20 2015 | 9:10 AM IST

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