For the quarter ended September 2013, Hindustan Zinc Ltd's net profit grew a mere seven per cent to Rs 1,640 crore. This was primarily due to a fall in the company's other income, which declined to Rs 266.88 crore from Rs 521.34 crore in the corresponding period last year.
During the September quarter, mark-to-market losses on investments in bonds led to a significant fall in the company's other income, analysts said.
However, the Vedanta Group company reported a significant 28 per cent increase in operating profit (earnings before interest, taxes, depreciation and ammortisation, or Ebitda) at Rs 1,904 crore. "The (Ebitda) increase was driven by higher sales volume and rupee depreciation, partially offset by lower silver prices," said Hindustan Zinc.
The company's net sales rose 25 per cent year-on-year to Rs 3,559 crore. Refined zinc production increased 28 per cent to 1,94,814 tonnes compared to the year-ago period, owing to improved operational efficiencies. Production of integrated refined lead rose 29 per cent to 28,978 tonnes due to improved utilisation of smelter capacity. Integrated saleable silver production rose 14 per cent year-on-year to 83 tonnes.
The company's Rampura Agucha underground lead-zinc mine project in Rajasthan is operational, and commercial production would be ramped up in the second half of this financial year. The Kayad mine would also commence commercial production this financial year, Hindustan Zinc said.
