Hind Zinc Q3 net profit leaps 306% to Rs 1,335Cr

Mumbai, 12 January 2007: Hindustan Zinc Limited (the "company") today announced results for the third quarter ("Q3") and nine months ended 31 December 2006 ("nine month period"). Revenues and net profit for Q3 were Rs 2,480 crore and Rs 1,335 crore respectively, an increase of 171% and 306% over the corresponding quarter in the previous year. For the nine month period, revenues and net profit were Rs 6,531 crore and Rs 3,507 crore respectively, an increase of 211% and 423% year on year. The surge in net profits was on account of higher prices and metal volumes.

The company achieved a record Q3 refined metal production of 92,759 tonnes. The increase in mined and refined metal production, during Q3 and nine month period, was primarily on account of increased output from the new hydro smelter and Rampura Agucha mine.

Progress on Projects: The 170,000 tonne zinc expansion project at Chanderiya together with the corresponding expansion at Agucha mine is also progressing well and is on course for expected commissioning in early 2008. During Q3, the company announced a debottlenecking project at Chanderiya and Debari zinc smelters to increase its total zinc smelting production capacity by 88,000 tpa.

The company will also construct a new 80 MW thermal coal-based captive power plant at Zawar. The initial work on these projects has commenced. The project is expected to be completed by early 2008. During Q3, the company also announced plans to establish two wind energy farms with a combined capacity of about 75 MW in a phased manner during the second half of fiscal 2007 and fiscal 2008. The estimated cost for this project is Rs 400 crore. The work on the project is progressing well.

About HZL: HZL is India's only integrated producer of zinc and among the world's leading integrated producers. Its zinc capacity is currently 400,000 tpa with its smelter operations situated in Chanderiya, Debari and Visakhapatnam. HZL has lead-zinc mines in Dariba, Rampura Agucha, and Zawar. HZL has approximately 6,300 employees. The company is a subsidiary of Sterlite Industries (India) Limited.