Hindustan Zinc on January 19 reported a 20.17 percent drop in its consolidated net profit at Rs 2,156 crore. The company had posted a net profit of Rs 2,701 crore in the same quarter last year.
The revenue from operations also fell 2.71 percent to Rs 7,628 crore compared to Rs 7,841 crore in the corresponding quarter last year.
The drop in revenue was on account of lower LME coinciding with lower refined metal and silver volumes partially offset by favourable exchange rates and gains from strategic hedging.
Mined metal production for the quarter was at 254 kilotonnes (kt), marginally up from Q3FY22 driven by higher ore production and marginally down compared to last quarter due to overall mined metal grades. The firm posted the highest-ever nine months mined metal production at 761 kilotonnes, up 5.4 percent YoY, driven by higher ore production, improved mined metal grades and operational efficiency.
Zinc production during the quarter was at 210 kt, down 1.7 percent YoY and up 11.3 percent sequentially. Nine months integrated zinc production was at 606 kt, up 7.3 percent YoY, the company said.
Silver production for the quarter was at 161 MT, down 6.9 percent YoY owing to lower feed grade at SK Mine in line with the mine plan for the quarter.
The Board of the company has also approved a third interim dividend of Rs 13 per equity share. The record date for the dividend payment is January 30.
The company said it will also purchase the equity shares of THL Zinc Ltd, Mauritius which comprises shares held in Black Mountain Mining Pty Ltd, South Africa (69.6 percent) and THL Zinc Namibia Holdings (Pty) Ltd (100 percent), Namibia by Hindustan Zinc through its wholly owned subsidiary, for a cash consideration not exceeding $2,981 million in a phased manner. Eventually, THL Zinc Ltd will become a wholly-owned subsidiary of the Company.
This investment is an attractive opportunity for Hindustan Zinc to grow and increase its foothold overseas and take its brand globally. Hindustan Zinc will have the combined Reserves and Resources of 1000+ million tonnes of ore & 65+ million metric tonnes of metal across India and Africa.
THL Zinc Ltd is currently a wholly-owned subsidiary of THL Zinc Ventures Ltd, a direct wholly-owned subsidiary of Vedanta Limited.
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