For the quarter ended June 2020, the company's standalone net profit dropped 23 per cent year-on-year (YoY) to Rs 1,359 crore on 20.83 per cent decrease in revenue to Rs 3,898 crore.
Hindustan Zinc's fall in revenues was primarily due to 29 per cent YoY and 8 per cent sequential decline in Zinc LME prices, 11 per cent YoY and and 9 per cent sequential decline in lead LME prices, lower metal premium and Covid-19 impacted lower volume, partly offset by rupee depreciation. READ MORE
In a September 21 note, analysts at Edelweiss Securities said that the non-ferrous operating data for August shows that production is normalising across companies. The key takeaways, according to them, are a month-on-month (MoM) uptick in aluminium production across companies, fast normalisation of Hindalco’s copper production compared to Q1FY21; and sustenance of mined metal (MM) production at Vedanta’s Zinc-India division at 80 kilotonnes per month.
"We envisage Q2FY21 to be better for all non-ferrous companies as production has picked up and prices are higher," the brokerage said.