Vedanta Group firm Hindustan Zinc Ltd today reported a 26 per cent rise in standalone net profit at Rs 2,319 crore for the quarter ended December 31, 2016, on the back of hiked zinc prices and increased metal production.
The company had posted Rs 1,839.5 crore in the corresponding quarter of previous fiscal, Hindustan Zinc said in a filing to BSE.
The company's sales increased to Rs 5,348 crore, over Rs 3,676 crore in the year-ago period.
Commenting on the result, the company's Chairman Agnivesh Agarwal said 2016 was a strong year as zinc prices surged over 55 percent during the quarter compared to a year ago.
With no new zinc mines being commissioned in the near future, zinc market outlook remains positive for 2017 also, Agarwal said.
"I am pleased to report a five year CAGR of 38 per cent in our underground mined metal production. We are uniquely poised to benefit from these dynamics, being the only primary zinc producer in the country," Agarwal added.
The company said that highest-ever mined metal production was achieved during the quarter, up 44 per cent from previous quarter and 21 per cent y-o-y.
"The Q-o-Q increase was on account of higher volumes from Rampura Agucha open cast mine in accordance with mine plan and the Y-o-Y increase was driven by higher volumes from Rampura Agucha underground as well as open cast mines," the company said.
During the nine month period, underground mines ramped up significantly to achieve a substantial 60 per cent y-o-y increase in ore production and 53 per cent y-o-y increase in mined metal production.
"In line with the plan of substantially higher mined metal production in H2, mined metal production during the nine month period was lower by 15 per cent y-o-y and will be higher than FY 2016 for full year with Q4 being higher than Q3," it said.
Integrated zinc metal production during the quarter was at 2,05,000 tonnes, up 38 per cent from previous quarter and flat y-o-y on account of accretion of mined metal inventory.
Integrated saleable lead metal production during the quarter was 39,000 tonnes, up 26 per cent sequentially and 10 per cent y-o-y.
"The y-o-y increase was in line with mined metal production, while the sequential increase was accentuated on account of enhanced smelter efficiencies," it said.
As on December 31, 2016, the company's net cash and cash equivalents was Rs 25,319 crore, out of which Rs 20,644 crore was invested in mutual funds and Rs 4,593 crore in bonds.
The company follows a conservative investment policy and invests in high quality debt instruments.
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