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Hindustan Zinc has reported a 12 per cent increase in net profit at Rs 1,290 crore in the December quarter, against Rs 1,149 crore recorded in the same period last year despite the higher cost of production and appreciation of the rupee against the dollar.
The net zinc production cost, excluding royalty, during the quarter increased five per cent to Rs 35,500 a tonne on account of high raw material prices and a rise in stripping cost at mines.
Sales were up 17 per cent at Rs 2,601 crore (Rs 2,217 crore) on higher volumes, improved LME prices and operational efficiencies. The company achieved its highest ever refined zinc production of 178,250 tonnes, up around 20 per cent. During Q3, the average zinc and lead LME prices were $2,315 a tonne ($2,211 a tonne) and $2,390 a tonne ($2,292 a tonne) respectively.
Refined lead production of 14,267 tonnes was lower than last year due to the maintenance shutdown at the Ausmelt and ISF smelters. Revenues were augmented by the sale of 36,000 dry tonnes of surplus zinc concentrate and 12,800 DMT of surplus lead concentrate. Refined silver production was almost flat at 42,000 kg.
Mr Agnivesh Agarwal, Chairman, Hindustan Zinc, said, the company would emerge the world's largest silver producer with the commencement of production at the 1.50 mtpa mill at Sindesar Khurd by next fiscal which will start trial production at the end of this quarter. The silver production capacity will increase to 500 tonnes in FY'12.
The company decided to add 150MW capacity to its existing wind power generation capacity of 123.2 MW. The first phase of 50MW will be completed by this quarter and 100MW is slated for completion by Q2 FY 2012.
BONUS, STOCK SPLIT
In order to improve liquidity, the board has approved subdivision of existing equity shares of Rs 10 each into Rs 2 each and issue of bonus shares in the ratio of 1:1.
As on December 31, the company had cash and cash equivalents of Rs 13,092 crore, of which Rs 6,592 crore was invested in debt mutual funds and Rs 6,500 crore in fixed deposits with banks.
The company's shares on the BSE were down 0.78 per cent at Rs 1,338 on Wednesday.
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