Vedanta arm Hindustan Zinc’s Q4 net profit rises 6.2% on higher sales
Hindustan Zinc on Monday reported a 6.2 per cent growth in net profit at Rs 1,997 crore for the fourth quarter of 2014-15 on the back of expansion in sales and production. The company, in which Anil Agarwal-led Vedanta Resources has a majority stake, had registered a net profit of Rs 1,881 crore in the year-ago period.
Revenue of the company grew by 13.5 per cent to Rs 4,073 crore in the January-March quarter of 2014-15, from Rs 3,588 crore in the year-ago period, Hindustan Zinc said in a statement. “Mined metal output was the highest ever at 269 thousand tonnes, up 34.5 per cent as compared with 200 thousand tonnes in corresponding prior period,” the company said.
The increase was as per the guidance and mine plan of Rampura Agucha mine and Sindesar Khurd mine in Rajasthan, driven by higher ore production during the quarter, it added. Commenting on the performance, Hindustan Zinc Chairman Agnivesh Agarwal said: “In our golden jubilee year, we have delivered our best ever performance. The year witnessed favourable zinc market dynamics with falling mine surplus coupled with strong demand, which is likely to boost the price of zinc in coming years too.”
“Another noteworthy event during the year was the enactment of new MMDRA Act 2015, which will bring greater transparency in granting of mineral concessions,” he said. For the entire 2014-15 fiscal, the firm reported a 17.8 per cent rise in net profit at Rs 8,178 crore compared to Rs 6,904 crore in 2013-14. Revenue rose by 8.4 per cent to Rs 14,588 crore in 2014-15, from Rs 13,458 crore in 2013-14.
“For the year, EBITDA was up 7 per cent to Rs 7,420 crore primarily on account of higher revenue and was adversely impacted by higher royalty rates,” the company said. Expecting a further increase in production in 2015-16, the company said, “We expect significant progress in terms of mine development and ore production from the underground mine projects.
In FY 2016, mined metal production is expected to be higher from FY 2015, while integrated refined metal production, including silver, will be significantly higher, the company said.