Hindustan Zinc Q1 net profit zooms 81% to Rs 1,876 cr

Vedanta Group firm Hindustan Zinc Ltd (HZL) today posted 81 per cent jump in net profit to Rs 1,876 crore for quarter ended June 30, 2017 helped by better pricing and higher volume.
The company had posted a net profit of Rs 1,037 crore in the corresponding quarter of previous fiscal, HZL said in a filing to BSE.
The total income during April-June quarter stood at Rs 5,543 crore, registering an increase of 61 per cent over the year-ago period.
"Revenues during the quarter were Rs 4,961 crore, up 79 per cent Y-o-Y on account of strong zinc and lead prices and higher volume," Hindustan Zinc said in a statement.

During the quarter, net profit increased by 81 per cent Y-o-Y to Rs 1,876 crore, the statement said, adding that the impact of higher EBITDA was partly offset by lower investment income on a smaller investment corpus post dividend pay-out and interest cost on temporary Commercial Paper.
Commenting on the result company's Chairman Agnivesh Agarwal said, "I am pleased to see a robust start to the new financial year. Our underground mines delivered their highest ever volumes this quarter, underpinning our smooth transition to an entirely underground mining company".

"Zinc prices strengthen towards the quarter-end on continued supply deficits and declining inventories of Zinc, we look forward to setting new benchmarks this year," he said.

Mined metal production during the quarter was at 2,33,000 tonnes, up 84 per cent Y-o-Y. The increase was primarily on account of higher volumes from all mines, higher zinc grade and depletion of opening ore stock.
Integrated zinc metal production during the quarter was at 194,000 tonnes, up 91 per cent Y-o-Y.
Integrated saleable lead metal production during the quarter was at 35,000 tonnes, up 42 per cent. The increase was in line with availability of mined metal, supported by smelter efficiencies.
Integrated saleable silver production during the quarter was 115 million tonnes (MT), up 30 per cent due to higher grade and volume from Sindesar Khurd mine.

The company's net cash and cash equivalents was Rs 16,998 crore as of June 30, 2017, which is excluding Rs 6,959 crore of short term commercial paper. The gross investments were Rs 23,957 crore in high quality debt instruments.