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Driven by higher zinc and silver output, Hindustan Zinc Ltd (HZL) posted a marginal 5% increase in its net profit for the quarter ended June 30.
The world’s largest integrated lead and zinc producer, HZL, reported net profit of Rs 1,660.45 crore for the first quarter of the current financial year as opposed to Rs 1581.34 crore in the corresponding period last year. Total revenue of the company shot up by 8.36% to Rs 2939.41 crore on higher sales volume and rupee depreciation, partly offset by lower metal prices. Revenue of the company in the June quarter of the previous year was reported at Rs 2712.67 crore.
The company’s chairman Agnivesh Agarwal attributed overall growth in performance to higher sales volume and rupee depreciation which was partly offset by lower metal prices.
EBITDA for the quarter was reported at Rs 1506 crore, up by 6% on higher sales, partially offset by higher operating costs.
Mined metal production jumped by 27.5% to 237,825 tonnes in Q1, ’14 as compared with 186,642 tonnes in the corresponding prior period. The increase was in line with the company’s plan to deliver 1 million tonnes of mined metal production for the year.
Similarly, integrated production of refined zinc was up 10% y-o-y to 173,000 tonnes in Q1, ‘14 on higher smelter utilization rate. The output of refined lead was flat at 29,110 tonnes. Saleable silver production was up 9% to 77 tonnes in the first quarter of the current financial year on higher contribution from Sindesar Khurd and Zawar mines.
Agnivesh Agarwal, chairman of the company, said, “We delivered growth on all fronts in the quarter and are committed to consistently deliver superior performance and maintain our leadership position.”
The zinc metal cost of production before royalty during the quarter was Rs 46,800 per tonne ($836), 2% higher in rupee and 1% lower in dollar terms from a year ago. The increase was primarily due to lower sulphuric acid credits and higher excavation costs, partially offset by lower coal price, lower specific coal consumption and benefits of higher volume.
As on June 30, 2013, the company had cash and cash equivalents of Rs 22,365 crore, out of which Rs 14,743 crore was invested in debt mutual funds, Rs 2,217 crore in bonds and Rs 5,398 crore was kept in fixed deposits with banks.
