20th Oct 2014 10:32
NEW DELHI (Alliance News) - Hindustan Zinc Ltd, India's lone integrated producer of zinc and lead and a subsidiary of Vedanta Resources PLC, reported a higher net profit on increased sales and other income.
The Udaipur, Rajasthan-based company posted a second-quarter net profit of Rs.2,183.52 crore or Rs.5.17 per share, rose by 33% from the Rs.1,640.25 crore or Rs.3.88 per share in the second-quarter of 2014.
Quarterly net sales grew by six percent to Rs.3,749.22 crore from Rs.3,520.45 crore in the year-ago quarter, mainly driven by higher zinc LME price, partly offset by lower volumes and silver prices and rupee rupee depreciation. Other operating income for the quarter totaled Rs.53.16 crore, up by 37% from Rs.38.68 crore in the prior-year quarter, whereas other income for the quarter more than double to Rs.696.65 crore from Rs.266.88 crore last year. 161
The company said the EBITDA during the quarter was up by five percent to Rs.2,000 crore, compared to previous year, primarily due higher LME prices despite lower volumes and the recent increase in royalty rates.
During the quarter, income from 'Zinc, Lead & Silver' segment increased by six percent to Rs.3,681.71 crore from Rs.3,460.39 crore in the corresponding quarter last year, while that of 'Wind Energy' amounted to Rs.67.51 crore, compared with Rs.60.06 crore in the previous-year quarter, an increase of 12%.
Mined metal production in Q2FY15 was up by 30% sequentially at 212,575 MT, compared with 163,131 MT in the previous quarter and down by four percent from 221,646 MT a year-ago.
The zinc metal cost of production before royalty during the quarter was Rs.55,154 (USD910), which is higher by nine percent (12% in Dollar terms) from a year-ago, though it improved significantly from Q1. The increase is attributed to lower production volumes, smelter shutdown cost,s increased employee expenses and higher mine development expenses, partly offset by higher credits and rupee appreciation, the company said.
For the first six months, the company's net profit increased by 15% to Rs.3,801.19 crore from Rs.3,300.70 crore in the corresponding period a year ago. Net sales and other income rose by four percent to Rs.6,809.57 crore from Rs.6,543.29 crore for the comparable period last year, while other income amounted to Rs.1,414.02 crore, compared with Rs.886.78 crore for the six months ended September 30, 2013.
Mined metal production in H1FY15 was 375,706 MT, compared with 459,471 MT in the corresponding period last year.
Outlook
The company reiterates its guidance of marginal growth in mined metal and silver production in FY15. Integrated zinc-lead metal production is expected to witness a strong growth in H2 over H1, in sync with mined metal production growth, the company said.
At the end of September 2014, the company had cash and cash equivalents of Rs.27,475 core.
Chairman Agnivesh Agarwal said, "Positive zinc fundamentals have translated into improved LME prices. At the same time, we continue to demonstrate our commitment towards project development and delivering value to stakeholders. We remain focused on improving the profitability of our operations."
At the BSE, Hindustan Zinc closed Monday's trading at Rs.164.05, up 3.18% from the previous close.
Copyright RTT News/dpa-AFX
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