Hindustan Zinc (HZL) Q3 net profit rises 7 pct to Rs 1,723 crore

Higher revenue and better margins helped Hindustan Zinc’s (HZL) net profit to rise 7 per cent to Rs 1,723 crore in the third quarter of the current financial year from Rs 1,613 crore a year ago.

Profit of the company, with interests in zinc, lead and silver among others, would have been better but for lower other income and higher tax outgo during the quarter, it said in a BSE filing.

Though revenue and EBITDA (earnings before interest, taxes, depreciation and amortisation) were up by 9 per cent and 21 per cent to Rs 3,410 crore and Rs 1,828 crore, respectively, HZL’s other income fell by Rs 78 crore and tax outgo went up by Rs 102 crore during the quarter.

“The increase (in revenue) was driven by higher zinc sales volume and rupee depreciation, partially offset by lower silver and acid prices,” it said, adding that EBITDA improved due to higher integrated sales volume and rupee depreciation.

Hindustan Zinc’s total mined production fell by five per cent to 220,126 tonnes during the third quarter of the current fiscal from 232,926 tonnes a year ago.

Refined zinc, lead and saleable silver production rose by 17 per cent, 21 per cent and 35 per cent to 196,478 tonnes, 24,984 tonnes and 72 tonnes, respectively.

“We expect mined metal production of around nine lakh tonnes in FY’14 reflecting slower than expected ramp up of underground mining projects and some change in mining sequence wherein preference has been given to primary mine development during this period,” HZL said.

“Integrated saleable silver production is projected to be in the range of 290-300 tonnes in FY’14,” it added.

HZL said the mine development was progressing well in all underground projects and the company would continue to invest USD 250 million on capital expenditure each year.

HZL said, as on December 31, 2013, it had Rs 24,095 crore cash and cash equivalents.