Representative Image. Photo: Twitter (@Hindustan_Zinc)
reported a net profit of Rs 2,481 crore in the March quarter, up 85 per cent from the same period last year on the back of an increase in revenue.
The company's topline stood at Rs 6,725 crore in the period under review, up 56 per cent from same period last year, led a 45 per cent year-on-year spike in zinc sales, 44 per cent higher lead sales and a 125 per cent jump in silver revenue.
Zinc volumes were up 15 per cent year-on-year, while lead volumes went up 29 per cent, the company said in its release.
The firm’s earnings before interest, taxes, depreciation and ammortisation (EBITDA) jumped 98 per cent in the quarter gone by at Rs 3,875 crore.
“Our firm focus on operating efficiencies has led to cost optimization and improved profitability. We delivered the highest ever quarterly EBITDA which nearly doubled from the same quarter last year. We have achieved the lowest ever annual dollar cost of production since the transition to underground mining operations,” Vinaya Jain, senior vice president and head finance at Hindustan Zinc
was quoted as saying.
The company’s zinc cost of production for the quarter stood at $945 per tonne, while that for FY21 stood at $954 per tonne.
Sequentially, revenue was up 14 per cent in the March quarter primarily driven by higher zinc, lead and silver prices.
Going ahead, the company said both mined and finished metal production in FY22 will be higher than last year and is expected to be at 1025-1050 KT each.
While the zinc cost of production in FY22 is expected to remain below $100 per tonne, project capex for the year is seen at $100 million.
As on March 31, 2021, the company’s gross cash and cash equivalent stood at Rs 22,308 crore as against Rs 21,024 crore at the end of December quarter.
The company’s net cash and cash equivalent as on March 31, 2021 stood at Rs 15, 130 crore, up from Rs 10, 988 crore in the preceding quarter.