Hindustan Zinc, a Vedanta Group company, reported that its net profit was up 53 per cent in the March quarter to Rs 2,166 crore (Rs 1,413 crore) on better price realisation, especially that of silver.
The company has declared a dividend of Rs 1.50 a share.
Total income was up 25 per cent at Rs 3,909 crore (Rs 3,135 crore) even as the metal output fell as per the company’s plan for the year.
In the current financial year, the company plans to increase mined metal production by 15 per cent to one million tonnes. Saleable silver production is expected to go up by 12 per cent to 360 tonnes (322 tonnes) in FY’14.
Agnivesh Agarwal, Chairman, said the next phase of expansion project would make the company a global leader in the metal space and maintain a low cost of production.
Hindustan Zinc has total reserves and resources of 348 million tonnes (mt) containing 35 mt of zinc-lead and 910 mt of silver. It has a mine life of over 25 years. Last fiscal, the company added 24.6 mt to its reserves, before the depletion of 8.6 mt.
OUTPUT DOWN
Refined zinc production was down four per cent at 182,000 tonnes (190,000 tonnes), while that of refined lead fell six per cent at 35,000 tonnes (37,000 tonnes). Silver output was up 20 per cent at 100 tonnes (83 tonnes) driven by higher contribution from the Sindesar Khurd mine and the Dariba lead smelter in Rajasthan.
Cost of zinc production, excluding royalty, was up eight per cent at Rs 44,900 a tonne due to higher cost at Rampura Agucha and lower acid credits, the company said.
Revenue from the silver business was up 49 per cent at Rs 611 crore (Rs 409 crore), while zinc and lead contribution jumped 25 per cent and seven per cent to Rs 2,655 crore (Rs 2,122 crore) and Rs 443 crore (Rs 415 crore).
For the financial year 2012-13, Hindustan Zinc net profit was up 25 per cent at Rs 6,899 crore (Rs 5,526 crore), while net sales improved 11 per cent to Rs 12,525 crore (Rs 11,255 crore).
As on March 31, the company has cash and cash equivalent of Rs 21,479 crore.
Shares of the company were up four per cent at Rs 119 on Thursday.