21st Jul 2014 11:21
LONDON (Alliance News) - Vedanta Resources PLC Monday said post-tax profit fell at its subsidiary Hindustan Zinc Ltd during its first quarter despite higher zinc prices leading to an increase in revenues.
The India focused-oil and metals company said Hindustan Zinc's post-tax profit fell 3% to INR16.18 billion for the three months ended June 30 from INR16.60 billion the previous year.
Hindustan Zinc said its revenues increased 1% to INR29.63 billion from INR29.39 billion as a 22% fall in silver revenues was offset by strong lead and zinc sales during the period due to higher prices.
However, the company saw a fall in earnings before interest, taxation, depreciation and amortisation by 10% to INR13.52 billion from INR15.06 billion with volumes falling across all of its metals.
Hindustan Zinc's mined metal production was down 31% to 163,000 metric tonnes from 237,825 metric tonnes in line with the company's mine plan, which involves lower mined metal production on a year-on-year basis in the first-half of the year when it excavates more waste than ore.
The company said it expects higher production in the second half and noted that its transition to underground mining is progressing well.
?Zinc prices are looking up as market sentiments are improving and metal balance remains favourable. Our expansion projects will enhance our market leadership and we are aggressively accelerating our mine development efforts to increase future production," Hidustan Zinc Chairman Agnivesh Agarwal said in a statement.
Vedanta Resources shares were up 0.5% to 1,110.00 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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