Hindustan Zinc Q2 Net Profit Increases 33%

Vedanta group firm Hindustan Zinc on Friday reported a 32.8 per cent rise in consolidated net profit at Rs 2,680 crore for the quarter ended September 2022 on the back of factors like higher zinc volumes and prices and gains from strategic hedging.

The company had posted a consolidated net profit of Rs 2,017 crore in the year-ago period, Hindustan Zinc said in a filing to BSE. The company's CEO Arun Misra said over phone that both metal and silver production have gone up and this has contributed to EBIDTA.

The consolidated revenue from operations of the company in the July-September period increased to Rs 8,127 crore, over Rs 5,958 crore in the year-ago period, the filing said. "Our world-class mining assets backed with our zeal for operational excellence has enabled us to deliver consistent results in the toughest of circumstances. We have further accelerated our digitalisation efforts to aid in our business efficiency and safety," Misra explained.

The company's mined metal output during the July-September period was at 2,55,000 tonnes, up 2.8 per cent, on the back of better grades and improved mill recoveries. Hindustan Zinc's integrated metal production for the quarter was 2,46,000 tonnes, up 17.5 per cent year-on-year.

Asked to comment on the company's capex plan for the ongoing fiscal, Misra said it has an approved project for putting up a roaster which will increase the company's finished metal production."So that roaster project is there. Roughly about Rs 1,000 crore we will spend on that. And we have capex of roughly around Rs 1,800 crore for our fertiliser project, so these two projects are ciritcal part of our overall ambition," the CEO said.

Replying to a question, he said the company is good in resource business and specially the deep-seated minerals and precious ore and it does not wish to move away from this to coal mining or something else. "We should rather go little bit of downstream," he added.

Hindustan Zinc is the country's only integrated producers of zinc, lead and silver. The company has its headquarters in Udaipur, Rajasthan where it has its zinc, lead mines and smelting complexes.