Hindustan Zinc

During the year to March 1996 the company's sales turnover declined by 15 per cent to Rs 765.23 crore. Gross profits for the year showed a marginal fall of 2 per cent to Rs 130.60 crore while due to a tax provision of Rs 23 crore as against nil for the previous year, net profit declined sharply by 33.6 per cent to Rs 54.57 crore. The sales volume of zinc ingots during the year was lower by 21.5 per cent at 1.03 lakh mt while sales value showed a fall of 18.9 per cent to Rs 602.64 crore. Sale of lead ingots improved by 20.8 per cent in volume terms and by 34.6 per cent in value terms. The gain in lead was largely due to an increase in the domestic market price in consonance with the price sentiments at the London Metal Exchange. The company plans to expand its lead zinc ore beneficiation plant capacity from 3,000 tpd to 4,500 tpd at a cost of Rs 45.13 crore. The contract has been awarded to Engineers India and is likely to be completed by November 1997. At Jagpura, Rajasthan, the company has completed 2,773 metres of diamond drilling as a step towards exploration of gold.

 

Market price: Rs 5.50, EPS: Rs 1.29, P/E: 4.26