Hindustan Zinc Q1 net up 5% at Rs 1,660.45 cr

Vedanta group firm Hindustan Zinc today reported 5% growth in net profit at Rs 1,660.45 crore for the quarter ended June 30, 2013, as impact of higher sales and output was partially offset by lower metal prices.

 

The company had reported a net profit of Rs 1,581.34 crore during the corresponding quarter of the previous fiscal.

 

Net sales of the company increased by 8.36% to Rs 2,939.41 crore during the quarter vis-a-vis Rs 2,712.67 crore of the Q1 of FY'13.

 

In a statement, the company said that "the increase was driven by higher sales volume and rupee depreciation, partially offset by lower metal prices."

 

Zinc production was up 10% at 1,73,000 tonnes but prices at the London Metal Exchange (LME) had declined by about 5% during the quarter, the company said.

 

Similarly, LME prices for silver were down 18% in the last quarter and it mitigated the impact of 9% growth in Hindustan Zinc's silver production at 77 tonnes.

 

Its overall mined metal production, at 2,37,825 tonnes, increased by over 27% during the quarter.

 

"The increase was in line with our plan to deliver 1 million tonnes mined metal production for the year," the company said.

 

Commenting on the results, company chairman Agnivesh Agarwal said, "We delivered growth on all fronts in the quarter and are committed to consistently deliver superior performance and maintain our leadership position."

 

As on June 30, 2013, Hindustan Zinc had a total cash and cash equivalents of Rs 22,365 crore, the company said, adding that it follows a conservative investment policy and invests in high quality debt funds and fixed deposits.

 

Following the results, shares of the company fell 2.34% to close at Rs 104.20 apiece on the BSE today.