Vedanta Group firm Hindustan Zinc Ltd (HZL) today reported a 19 per cent growth in its net profit at Rs 1,921 crore for the first quarter ended June 30, 2015, helped by higher volume and rupee depreciation.
The company, in which Anil Agarwal-led Vedanta Resources has a majority stake, had posted a net profit of Rs 1,618 crore in the year-ago period.
Revenues of the firm grew by 21.4 per cent to Rs 3,596 crore in the April-June quarter of this fiscal from Rs 2,963 crore in the same period last fiscal.
Commenting on the performance, HZL Chairman Agnivesh Agarwal said: "Zinc price has held up better in an environment of retreating base metal prices. We anticipate later part of the year to be stronger on expectation of global zinc deficit due to mine closures."
On growth in revenue, HZL said the increase was driven by higher zinc volumes and LME (London Metal Exchange) prices and rupee depreciation. This was partly offset by lower prices and volumes of silver and lead and also lower zinc premium.
However, it was partly offset by lower investment income due to mark to market losses on a small portion of the portfolio, which is expected to get recovered in the coming quarters, the company said.
Mined metal production grew 42 per cent to 232,162 tonnes during the quarter against 1,63,131 tonnes a year ago, on higher ore production from Rampura Agucha, Kayad and Sindesar Khurd mines.
However sequentially, mined metal production was lower by 14 per cent, in-line with mine plan.
Integrated saleable zinc, lead and silver metal output during Q1 increased by 35 per cent, 27 per cent and 33 per cent respectively compared to a year ago,.
Though the growth was slightly lower than that of mined metal production and will be made up in the next quarter, the firm said.
Integrated metal production of zinc and lead was lower by 14 per cent and 17 per cent respectively from Q4 FY 2015 on account of planned shutdowns.
In 2015-16, mined metal production is expected to be higher from 2014-15, while integrated refined metal output, including silver, will be significantly higher, as per earlier guidance, it added.
Zinc metal cost of production before royalty during the quarter was Rs 50,955 (USD802), which is 14 per cent lower in Rupee and 19 per cent lower in USD term from a year ago.
On outlook, Agarwal said: "Indian manufacturing sector is showing signs of recovery with improved order books and flow of funds backed by Government initiatives, thus providing a positive outlook for the industry."
Shares of the company today rose by 1.46 per cent to settle at Rs 166.35 per share on the BSE.
