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Hindustan Zinc Q4 net dips 13 pc; plans USD 250 mln spending

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Press Trust of India New Delhi
Last Updated : Apr 21 2014 | 7:12 PM IST
Hindustan Zinc's net profit dipped 13 per cent to Rs 1,881 crore in the January-March quarter on lower volumes.
The company, a unit of Anil Agarwal-led Sesa Sterlite with interests in zinc, lead and silver, said it plans to invest USD 250 million in FY15, when volumes are expected to be marginally higher.
Hindustan Zinc (HZL) had clocked a profit of Rs 2,166 crore a year earlier, it said in a statement.
"In Q4, net profit declined by 13 per cent to Rs 1,881 crore as compared to previous year, in line with EBITDA and partly offset by higher other income," HZL said.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) were lower by 18 per cent in the quarter on lower volume and metal prices, it said. Other income rose to Rs 589 crore from Rs 401 crore.
Net sales fell 7 per cent to 3,589 crore because of lower silver and zinc sales, which could not be offset by a 21 per cent rise in lead revenue.

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The company announced a 175 per cent dividend for 2013-14, during which revenue rose 7 per cent to Rs 13,459 crore, driven by higher volumes of zinc sales.
"Mined metal production for the year was 8,80,000 tonnes, marginally higher than previous year and a record. Production in the second half of FY14 was lower than what we had planned initially due to slower-than-expected ramp up of underground mining projects and changes in mining sequence, wherein preference was given to primary mine development," HZL said.
Production of zinc, lead and silver were higher by 13 per cent, 10 per cent and 4 per cent, respectively, in 2013-14.
"We achieved record production and mine development in a year, which marked the beginning of our transition from open cast to underground mining at Rampura Agucha," HZL Chairman Agnivesh Agarwal said.
EBITDA increased 7 per cent to Rs 6,974 crore in FY14 on higher integrated metal volumes and rupee depreciation, partially offset by lower metal prices, the company said. Net profit remained flat at Rs 6,905 crore in 2013-14.
"The positive impact of higher EBITDA was partly offset by higher depreciation, lower other income and higher tax during the year," it said.
HZL said the Kayad and Rampura Agucha underground mine projects started commercial production during the year and are ramping up well after initial difficulties.
In FY15, mined metal and integrated refined metal output including silver is expected to be marginally higher, it said.
The company, which has cash and cash equivalents of Rs 25,535 crore, expects capital expenditure of USD 250 million in the current financial year.

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First Published: Apr 21 2014 | 7:12 PM IST

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