Companies

Hindustan Zinc’s profit dips 8%

Our Bureau Mumbai | Updated on July 19, 2019 Published on July 19, 2019

SUNIL DUGGAL, CEO of Hindustan Zinc

 

Hindustan Zinc, a Vedanta group company, has reported an 8 per cent fall in net profit at ₹1,765 crore for the June-ended quarter, largely due to lower realisation.

Revenue from operations was down 6 per cent at ₹4,987 crore, with a 13 per cent decline in LME prices, lower metal production and weak lead and silver prices.

Mined metal production was marginally up by 1 per cent at 2,13,000 tonnes on the back of a 10-per cent increase in low- grade ore production.

Integrated metal production was up three per cent at 2,19,000 tonnes, while zinc output was flat at 1,72,000 tonnes. Lead production jumped by 13 per cent to 48,000 tonnes and silver output was up 15 per cent at 1,59,000 tonnes.

The cost of zinc production before royalty payment during the quarter was 8 per cent higher at ₹74,219 a tonne.

The cost increased due to lower ore grades, higher mine development and higher prices for input commodities such as cement, partly offset by higher metal volume and lower diesel prices.

EBITDA for the quarter was down 11 per cent to ₹2,480 crore.

As at June-end, the company had cash and cash equivalents of ₹18,258 crore against ₹16,952 crore at the end of FY19.

Shares of the company were down 2 per cent at ₹220 on Friday.

Published on July 19, 2019
This article is closed for comments.
Please Email the Editor