Hindustan Zinc Q3 net up 38% at Rs 2,379 crore

Mined metal production during the quarter was up by 14% sequentially and 10% y-o-y

Hindustan Zinc today clocked a 38% rise in net profit in the October-December quarter at Rs 2,379 crore on higher zinc, lead and silver sales.

The company, in which Anil Agarwal-led Vedanta Resources has a majority stake, had clocked Rs 1,723 crore net profit in the corresponding period last fiscal.

"Revenues were up 12% to Rs 3,804 crore in Q3 FY 2015 from a year ago. The increase was driven by higher zinc LME and lead & silver metal volumes, partly offset by lower silver price and refined zinc volume," HZL said in a release.

Mined metal production during the quarter was up by 14% sequentially and 10% year-on-year at 242,417 tonnes, as compared with 212,575 tonnes in previous quarter and 220,126 tonnes a year ago.

"The increase was as per the mine plan and driven by higher production from Rampura Agucha mine and better ore grades," it said.

Earnings before interest, taxes, depreciation, and amortisation was up by 14% to Rs 2,089 crore for the quarter as compared to previous year as a result of better revenues and lower cost of production.

"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," said Agnivesh Agarwal, Chairman, HZL.

At the end of December 31, 2014, the company said cash and cash equivalents stood at Rs 28,890 crore, a rise of 20% from a year ago.

HZL shares rose by over two% to end at Rs 160.40 apiece on the BSE.