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Last Updated : Feb 10, 2017 03:58 PM IST | Source: PTI

Hindustan Zinc Q3 net profit jumps 26% to Rs 2,319 cr

The company had posted Rs 1,839.5 crore in the corresponding quarter of previous fiscal, Hindustan Zinc said in a filing to BSE.

 
 
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Vedanta Group firm Hindustan Zinc Ltd today reported a 26 percent 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.

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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 percent 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 percent from previous quarter and 21 percent 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 percent y-o-y increase in ore production and 53 percent 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 percent 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 percent 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 percent sequentially and 10 percent 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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First Published on Feb 10, 2017 03:56 pm
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