Hindustan Zinc Ltd on October 18 said its September quarter net profit rose 35% to Rs 2,327 crore as against Rs 1,729 crore in the year-ago period, helped by gains in zinc prices on prospects of stronger China demand and global supply worries.
The company's revenue from operations rose 21% to Rs 8,004 crore in Q2FY25 as against Rs 6,619 crore in Q2FY24.
At 2:30 pm on October 18, the company's shares on BSE were trading 1.35% higher at Rs 515 apiece.
The Vedanta-backed company's board also approved investment of Rs 327 crore for minimum 26% equity stake in Serentica Renewable India Private Limited (SRIPL) or its affiliates.
"The Board of directors in its meeting held on 18th October, 2024 has approved to enter into Power delivery agreement with Serentica Renewables India Private Limited or its affiliates. With this, the company will source 530 MW (contracted capacity including earlier PDAs) renewable power on Round The Clock (RTC) basis under group captive arrangement for 25 years on long term basis. The Company is expected to infuse equity of approximately Rs 327 crore for a minimum of 26% in Serentica," said Hindustan Zinc in a stock exchange filing.
Domestic zinc prices increased year-on-year in the September quarter as top producer and consumer China unveiled a barrage of stimulus measures to help its economy, boosting the outlook for metals demand.
Providing further support to zinc prices was a supply crunch from China as its top smelters agreed for planned production maintenance and postponed commissioning of new capacity.
Hindustan Zinc currently enjoys a near 75% share of the domestic market.
Its second-biggest business segment, silver, clocked a 20% growth in revenue. Hindustan Zinc is the world's third-biggest producer of the metal.
With inputs from Reuters
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