Vedanta firm Hind Zinc posts robust Q2 results

New Delhi: Vedanta Group firm Hindustan Zinc Ltd (HZL) Monday posted 29.7 per cent decline in net profit at Rs 1,815 crore for the quarter ended September 30, on the back of lower income and higher expenses.

The company had posted a net profit of Rs 2,584 crore in the July-September period of 2017-18, HZL said in a BSE filing.

"The decline is in line with EBITDA and higher depreciation, partly offset by lower tax rate," it said.

Total income during the quarter dropped to Rs 5,171 crore from Rs 5,779 crore in the year-ago period.

Total expenses of HZL increased to Rs 2,897 crore, over Rs 2,694 crore in the same quarter of 2017-18.

"...HZL has been ranked globally 1st in environment and 5th in overall sustainability in metal and mining sector in Dow Jones Sustainability Index. Our improved global ranking reflects increasing usage of technology, digitisation and innovation in our operations and care towards environment and communities," Chairman Agnivesh Agarwal said.

HZL further said its board has declared a special interim dividend of 1000 per cent i.e. Rs 20 per share on equity share of Rs 2 each amounting to Rs 10,188 crore and added that the record date fixed for the interim dividend is October 31.

As on September 30, 2018, the company's cash and cash equivalents were Rs 23,304 crore invested in high quality debt instruments.

The company said its mined metal output from underground mines during the reported quarter was at 232 kilo tonne (kt), up 10 per cent sequentially and 44 per cent year-on-year.

Integrated metal production was 212 kt, flat sequentially and down 8 per cent from the year-ago period.

"Integrated zinc production was down 5 per cent sequentially and 16 per cent year-on-year to 162 kt due to temporary mismatch in zinc mined metal availability even as mine production ramped up towards the later half of the quarter," the statement said.

Commenting on the outlook the company said:"Mined metal and refined zinc-lead production in second half of 2018-19 are expected to be significantly higher than that in first half with the continued ramp-up of underground mines and the overall production in the fiscal will be slightly higher than that of last year, as guided earlier."