Rising volumes and stable costs should support earnings despite volatile base metal prices
Digitisation has also helped the firms enhance safety and recovery, besides paring costs and improving logistics
Lower volumes, weak realisations and higher costs impacted the company's performance in the March quarter
Also, India has become the 12th largest silver producer in the world, from last year's position of 13
The company, which is a low cost producer, is changing its mining methodology from open cast to underground mining
The stock hit 52-week low of Rs 257, down 4 per cent on BSE, after the company reported 4 per cent year-on-year decline in net profit at Rs 2,211 crore in December quarter.
The company has seen softness in the first half of FY19 in terms of production volumes
Lower zinc prices and volumes, and rising cost of production affected performance
Hindustan Zinc today said its board has extended tenure of Sunil Duggal as CEO & whole-time Director of the company till 2020. "The board of directors has approved extension in the tenure of Sunil Duggal as CEO & whole-time Director of the Company from October 1, 2018 to July 31, 2020 on the existing terms and conditions," Hindustan Zinc said in a BSE filing. Duggal joined Hindustan Zinc in 2010 as executive director and became COO in 2012. In the year 2014, he was designated as Deputy CEO of Hindustan Zinc. He was appointed as CEO of Hindustan Zinc in 2015. The company is an integrated producers of zinc-lead and a leading producer of silver.
Shortage seen offsetting price volatility due to trade war
Metal production in the June quarter fell by 9 per cent year-on-year and 17 per cent, sequentially after closure of open-cast mining
Volume and costs are expected to improve going forward, but trade war concerns might keep base metal and stock prices volatile in the near term
While the company's fourth-quarter may be a blip, the road ahead looks good given the announcement of its next phase of expansion
HZL, that produces over 95 per cent of primary silver in India, is the 10th largest silver producer in the world
Hindustan Zinc is one of the largest integrated producers of zinc-lead with a capacity of 1.0 million MT per annum
After the commissioning of the new mills, the ore treatment capacity will increase to 17.5 MT from the current 14.5 MT per annum
The total income rose 4.1% to Rs 62.20 billion, while total expenses increased 2%
Galvanised steel can help in improving the longevity of Indian Railways infrastructure: HZL
10-year high zinc prices drive profitability at a time coal costs are up
The company is on course to achieve production guidance while outlook for zinc prices remains strong