Hindustan Zinc rose 1.83% to Rs 161.25 at 09:21 IST on BSE after net profit rose 5% to Rs 2285 crore on 4% growth in revenue to Rs 3908 crore in Q2 September 2015 over Q2 September 2014.
The result was announced after market hours yesterday, 19 October 2015.
Meanwhile, the S&P BSE Sensex was down 4.88 points or 0.02% at 27,360.04
On BSE, so far 39,684 shares were traded in the counter as against average daily volume of 82,908 shares in the past one quarter.
The stock hit a high of Rs 163.15 and low of Rs 161 so far during the day. The stock had hit a 52-week low of Rs 117.20 on 25 August 2015. The stock had hit a record high of Rs 190.40 on 19 February 2015.
The large-cap company has equity capital of Rs 845.06 crore. Face value per share is Rs 2.
Hindustan Zinc attributed the growth in bottom line in Q2 September 2015 to higher operating profit and increase in investment income, partly offset by higher tax rate. Top line growth during the quarter was driven by significant increase in volumes and rupee depreciation despite lower LME prices and zinc premiums.
Hindustan Zinc's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 2188 crore in Q2 September 2015 over Q2 September 2014. EBITDA was at an all time high in Q2 September 2015 primarily on account of higher revenues, rupee depreciation and lower cost of production, supported by write back of excess provisioning for contribution to District Mineral Foundation (DMF), Hindustan Zinc said.
During the quarter, Government of India notified the contribution towards DMF at 30% of royalty for existing mining leases, payable with effect from 12 January 2015. Accordingly, the company has revised its DMF liability resulting in a write back of Rs 140 crore provisioned during the prior quarters.
With regard to its on-going expansion projects, Hindustan Zinc said that Rampura Agucha open pit deepening project, undertaken to de-risk the transition to underground mine, is on track. The underground mine project is progressing well and regular stoping will start in Q3 December 2015, the company said. The main shaft sinking is now progressing as per plan, Hindustan Zinc said in a statement.
Agnivesh Agarwal, Chairman, Hindustan Zinc said that the company delivered another robust performance despite strong headwinds in the commodity markets.
Hindustan Zinc is a subsidiary of Vedanta (formerly known as Sesa Sterlite), a part of London listed Vedanta Resources plc, a global diversified natural resources company. The company is one of the largest integrated producers of zinc-lead and a leading producer of silver.
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