Hindustan Zinc rose 0.11% to Rs 131.75 at 15:21 IST on BSE after net profit fell 13.14% to Rs 1881.20 crore on 1.81% decline in total income to Rs 4231.34 crore in Q4 March 2014 over Q4 March 2013.
The result was announced during trading hours today, 21 April 2014.
Meanwhile, the S&P BSE Sensex was up 133.89 points or 0.59% at 22,762.73.
On BSE, so far 1.51 lakh shares were traded in the counter as against average daily volume of 1 lakh shares in the past two weeks.
The stock was volatile. The stock rose as much as 1.82% at the day's high of Rs 134 so far during the day. The stock lost as much as 1.4% at the day's low of Rs 129.75 so far during the day.
The decline in Q4 revenue was mainly due to no sale of MIC and lower silver sales, partly offset by rupee depreciation, Hindustan Zinc said in a statement. EBITDA (earnings before interest, taxation, depreciation and amortization) declined 18% in Q4 March 2014 over Q4 March 2013, mainly due to lower volume and metal prices, Hindustan Zinc said in a statement.
Hindustan Zinc's net profit rose 0.07% to Rs 6904.62 crore on 5.66% growth in total income to Rs 15535.43 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
The revenue growth during FY 2014 was driven by higher zinc sales volume and premium supported by rupee depreciation, partially offset by lower metal prices. EBITDA rose 7% to Rs 6974 crore in FY 2014 over FY 2013. The increase in EBITDA was driven by higher integrated metal volumes and rupee depreciation, partially offset by lower metal prices, Hindustan Zinc said in a statement.
Commenting on the company's financial performance, Mr. Agnivesh Agarwal, Chairman, Hindustan Zinc said, 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. We continue to maintain our cost leadership and create value for our shareholders.
As on 31 March 2014, the company had cash and cash equivalents of Rs 25535 crore, out of which Rs 20527 crore was invested in debt mutual funds, Rs 1977 crore in bonds and Rs 3020 crore were in fixed deposits with banks. The company follows a conservative investment policy and invests in high quality debt instruments, Hindustan Zinc said in a statement.
Throwing light on its expansion projects, Hindustan Zinc said that the Kayad and Rampura Agucha underground mine projects commenced commercial production during the year and after initial difficulties, are now ramping up well. Sindesar Khurd expansion project is ahead of schedule, the company said. During the year, total mine development increased by over 75%, marking the beginning of transition from open-cast to underground mining, Hindustan Zinc said in a statement.
Capital expenditure is expected to be around $250 million in FY 2015, Hindustan Zinc said in a statement.
With regard to its future business outlook, Hindustan Zinc said that Rampura Agucha will continue to provide majority of mined metal in FY 2015. The Rampura Agucha underground mine is now starting to ramp up in line with expectation. In FY 2015, mined metal and integrated refined metals production including silver is expected to be marginally higher from FY 2014, the company said. The cost of production is expected to remain stable, Hindustan Zinc said in a statement.
Hindustan Zinc, a Vedanta Group company in zinc-lead-silver business, is India's only and the world's largest integrated producer of zinc.
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