Hindustan Zinc jumped 4.29% to Rs 317.20 after the company reported 85% rise in net profit to Rs 2,481 crore on 56% increase in revenue from operations to Rs 6,725 crore in Q4 FY21 over Q4 FY20.
The increase in revenue was led by higher metal & silver volumes, higher zinc, lead & silver prices. Zinc sales volume increased 15% y-o-y and lead by 29% y-o-y in line with higher production and robust demand.
EBITDA in Q4 March 2021 stood at Rs 3,875 crore, up 98% from Rs 1,961 crore in Q4 March 2020. This was on account of higher revenue, favourable pricing environment and well controlled operating costs.
Profit before tax in the fourth quarter increased by 79.2% to Rs 3,343 crore from Rs 1,865 crore reported in the same period last year.
Hindustan Zinc's net profit increased by 17% to Rs 7,980 crore on 20% jump in revenues to Rs 22,071 crore in the year ended 31 March 2021 over the year ended 31 March 2020.
The company's net cash and cash equivalents as on 31 March 2021 was Rs 15,130 crore as compared to Rs 10,987 crore as on 31 December 2020 and was invested in high quality debt instruments.
With respect to outlook for FY22, the company said that both mined metal and finished metal production in FY2022 will be higher than last year and is expected to be c.1025-1050 KT each. FY2022 saleable silver production is expected to be higher and projected at c.720 MT. Zinc cost of production in FY2022 is expected to remain below $1000 per MT. The project capex for the year is expected to be approximately $100 million.
Commenting on the Q4 and FY performance, Arun Misra, CEO, said: "We are proud to announce that we delivered record production volumes of mined metal, finished metal and silver production while ensuring 22-months of fatality-free operations. I am also happy to inform that we exited the year at a run rate of 1.2 mtpa."
Vinaya Jain, Sr. VP & head finance, said: "We delivered the highest ever quarterly EBITDA which nearly doubled from the same quarter last year, Our PAT is up 85% Y-O-Y and we have achieved lowest ever the annual dollar cost of production since the transition to underground mining operations."
Hindustan Zinc is an integrated producer of zinc, lead and silver.
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