Vedanta Group firm Hindustan Zinc reported an 8 per cent increase in net profit to ₹ 2,149 crore for the fourth quarter of fiscal 2015-16, despite a fall in net revenue as it was aided by mark to market gains on its investment income. In the same quarter last year, the net profit of the company was ₹ 1,997 crore.

The company’s net revenues during the quarter fell 25 per cent to ₹ 3,070 crore as compared to ₹ 4,073 crore in the same quarter last year.

“The decrease was on account of lower zinc volumes and prices on the London Metal Exchange,” the company said in a statement adding that the lower zinc volumes were partly offset by higher volumes of lead and silver as well as the depreciation in the value of rupee as compared to the US dollar.

The company’s cost of zinc metal production before royalty also increased during the quarter. Cost of zinc metal production was ₹ 58,044 per tonne or $853 per tonne, which were 4 per cent higher in US dollar terms and 14 per cent higher in rupee terms.

“The increase was due to lower production volumes from Rampura Agucha open cast mine in accordance with mine plan resulting in lower average grades. This was further accentuated by higher mine development, partly offset by lower coal & commodity prices,” an official statement said.

“While the year witnessed volatile commodity prices and depressed market sentiments in general, Hindustan Zinc continued to outperform its previous operational records as well as generate unparalleled value for shareholders consistently,” Agnivesh Agarwal, Chairman, Hindustan Zinc said.

For the full fiscal 2015-16, the net revenues were marginally lower at ₹ 13,959 crore as compared to ₹ 14,588 crore in the previous fiscal. Net profit was almost flat for the 2015-16 fiscal at ₹ 8,167 crore as compared to ₹ 8,178 crore in the previous fiscal.

On Thursday, the company’s shares closed 0.40 per cent on the BSE at ₹ 173.95.

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