Hindustan Zinc net profit rises 56 % in June quarter

Hindustan Zinc Ltd (HZL) on Thursday reported a 55.9 per cent rise in consolidated net profit at Rs 3,092 in the June quarter, mainly on the back of higher metal prices.

The company had posted consolidated net profit of Rs 1,983 crore in the first quarter of the previous fiscal, it said in a filing to BSE.

The consolidated revenue from operations in the April-June preriod increased by 44.8 per cent to Rs 9,236 crore, over Rs 6,378 crore in the year-ago period, the filing said. ”Net profit for the quarter was at Rs 3,092 crore, up 55.9 per cent Y-o-Y and 5.6 per cent sequentially,” the company said in a statement.

HZL’s board has given the approval for forming a wholly-owned arm to set up a five lakh tonnes per annum fertiliser plant. ”Hindustan Zinc delivered best first-quarter production for mined metal, refined metal and silver. With the exit run-rate for both mined and refined metal crossing over one million tonnes, we are fully geared to deliver another stellar performance this year,” its CEO Arun Misra said.

HZL’s Deputy and Interim CFO Sandeep Modi said the company’s proactive approach to cash in the opportunity from higher LME through strategic hedging helped it to protect overall margin in an input commodity inflationary environment.

As on June 30, the company’s gross investments and cash and cash equivalents stood at Rs 24,254 crore. HZL, a Vedanta Group company, is an integrated producer of zinc, lead and silver.