Hindustan Zinc, a part of the Vedanta Group, has reported a 56 per cent increase in net profit in the June quarter at ₹3,092 crore against ₹1,983 crore logged in the same period last year, on the back of higher realisation.
Revenue from operations increased to ₹9,236 crore (₹6,378 crore), while EBITDA jumped 48 per cent to ₹5,278 crore (₹3,558 crore).
Fertiliser plant gets Board nod
The company’s board approved its plan to set up a five-lakh tonne-fertiliser plant through a new wholly-owned subsidiary and 1.60-lakh-tonne roaster used for zinc and lead production. It plans to spend ₹1,000-1,200 crore this fiscal.
Zinc and lead sales were up 10 per cent each to 2.06 lakh tonne and 54,000 tonne respectively, while that of silver had risen 11 per cent to 177 tonne.
Price of zinc and lead on the London Metal Exchange increased 34 per cent and 3 per cent to $3,915 a tonne and $2,199 a tonne, while that of silver on the LBMA fell 15 per cent to $22.6 an ounce.
The cost of production of zinc before royalty was up 18 per cent at $1,264 (₹97,423) a tonne on higher coal prices, rise in input cost and lower domestic coal (linkage) availability, which were partially offset by higher volume, better sulphuric acid realisations and improved recoveries, said the company.
Subsidiary to start production by next year-end
Hindustan Zinc Alloys, a subsidiary, plans to start production by December next year.
The Rajpura Dariba Mine revamping for 1.1 mtpa is expected to complete by Q3-FY23.
The company has retained mined metal production at last year’s level at about 10.75 lakh tonne and refined metal production at 10.25 lakh tonne, while saleable silver production is estimated at 725 tonne during this fiscal. The cost of production of zinc in this fiscal is expected to be at $1,175 a tonne.