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Hindustan Zinc Qtr Profit Doubles on Higher Metal Prices

Oct 19 (Reuters) - India's Hindustan Zinc reported a more than two-fold rise in quarterly profit on Monday, helped by higher ​zinc and silver prices and increased production.

Here are ‌some details:

  • The Vedanta group company has operations spanning the mining, processing and refining of zinc, lead and silver, as well as ​wind power generation

  • Consolidated net profit was at 64.12 ​billion rupees ($675.5 million) for the three months ended ⁠September 30 against 26.49 billion rupees a year ​earlier

  • Net profit margin climbed to 42% from 31% a year ​ago

  • The results come as zinc prices have surged on supply disruptions and expectations of a global market deficit

  • Firmer silver prices, supported by ​demand for precious metals, have improved the profit ​outlook for Hindustan Zinc, according to Jefferies

  • Hindustan Zinc's mined metal production rose ‌5% ⁠on-year to 271 kilo tons in the quarter, while refined metal production climbed 7% to 264 kilo tons

  • The company's silver production rose 20% to 173 tons, while ​revenue from silver ​sales more ⁠than doubled

  • Zinc production costs, excluding royalty, fell 29% to $703 per ton, supported by higher ​production, better ore grades and increased renewable ​power ⁠consumption, the company said

  • The firm, which commands roughly three-fourths of India's zinc market, reported a 76.5% rise in total ⁠revenue from ​operations to 150.93 billion rupees

  • Total ​expenses rose 31.5% to 68.95 billion rupees

($1 = 94.9300 Indian rupees)

Reporting by Surbhi ​Misra and Abhinav Parmar in Bengaluru; Editing by Mrigank Dhaniwala

Source: Reuters


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