20th Jul 2016 16:04
LONDON (Alliance News) - Indian miner Vedanta Resources PLC on Wednesday said its Hindustan Zinc Ltd subsidiary saw profit decline in its first quarter as net sales fell on lower production.
Hindustan Zinc said total sales in the quarter to the end of June fell 30% year-on-year, driven by a 38% decline in zinc sales and a 27% fall in lead sales which was only partially offset by a 28% climb in silver sales.
Profit after tax for the quarter fell 47%, while earnings before interest, taxation, depreciation and amortisation declined 33%.
Integrated zinc production fell 46% year-on-year to 101,000 tonnes, while lead production fell 11% to 25,000 tonnes. Mined metal production was 127,000 tonnes, in line with Hindustan Zinc's expectations and with expectations the second half will be substantially stronger.
Chairman Agnivesh Agarwal noted zinc prices rose 14% in the quarter and silver prices also rallied, while production from its underground mines also ramped up significantly.
Shares in Vedanta Resources closed down 3.1% at 500.44 pence Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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