Hindustan Zinc, a Vedanta Group company, has reported six per cent increase in net profit in the first quarter at Rs 1,581 crore (Rs 1,495 crore) on the back of substantial jump in other income.
Income from operations dipped four per cent in the first quarter of this fiscal due to sharp fall in metal prices. Other income, which includes earnings from investments, was up 59 per cent at Rs 574 crore (Rs 360 crore).
The positive impact of higher lead-silver volumes and rupee depreciation was offset by lower zinc production and drop in metal prices. The cost of production of zinc increased 17 per cent to Rs 45,759 a tonne (Rs 39,117 a tonne) due to rise in raw material prices and rupee depreciation.
Zinc prices on the LME was down 14 per cent at $1,928 a tonne, lead fell 23 per cent to $1,974 and silver dipped 26 per cent to $28.3 an ounce.
Mined metal production in the quarter was down marginally at 187,000 tonnes (188,000 tonnes).
Production at mines in the first half of this fiscal is expected to be marginally lower, but will be more than made up in the second half, the company said in a press release.
Zinc production was down 16 per cent at 161,000 tonnes. Refined lead production and silver production was up 91 per cent and 75 per cent to 31,000 tonnes and 82 tonnes, respectively.
The increase was primarily due to ramp up at Sindesar Khurd mine in Rajasthan, besides stabilisation of the new lead and silver refining capacities.
As at June 30, the company had cash and cash equivalent of Rs 19,404 crore invested in debt mutual funds, bonds and fixed deposits with banks.
The company’s share price was up 0.67 per cent at Rs 120 on the BSE on Friday.