Moneycontrol Bureau
Hindustan Zinc, a subsidiary of Vedanta, beat analysts' estimates on all parameters during July-September quarter, driven by volume growth and better operational performance. Profit grew by 4.6 percent year-on-year to Rs 2,285 crore and revenue increased by 6.1 percent to Rs 4,033 crore in the quarter gone by.
Profit growth was led by higher operating profit and other income, which was partly offset by higher tax rate. Revenue was supported by increase in volume and rupee depreciation even as LME prices and zinc premium declined, the company said in its filing.
Profit was estimated at Rs 1,945 crore on revenue of Rs 3,680 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
Other income during the quarter jumped 24.7 percent to Rs 868.9 crore and tax expenses rose 89 percent to Rs 571.5 crore compared to year-ago period.
Operating profit climbed 8.2 percent year-on-year to Rs 2,164 crore on account of higher revenue, rupee depreciation and lower cost of production. It was also supported by write back of excess provisioning for contribution to District Mineral Foundation (DMF). Operating profit margin has seen a 110 basis points expansion at 53.7 percent. Analysts had estimated operating profit at Rs 1,810 crore and margin at 49.2 percent for the quarter.
Hindustan Zinc said mined metal production increase by 13 percent Y-o-Y to 240kt during the quarter, driven by higher ore production across mines. Integrated zinc metal production rose by 22 percent Y-o-Y to 211kt due to enhanced smelter efficiency and conversion of WIP inventory.
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