Hindustan Zinc has reported a drop of 56% in profits for the third quarter of the company's financial year. Post-tax profits for the quarter came in at Rs3.69 billion while the cumulative nine-month result is a fall in profits of 32% to Rs21.76 billion.
The fall in profits were largely due to the fall in prices of its two main commodities, zinc and lead. Zinc prices halved in the three months. Average LME price for zinc and lead during Q3 was $1,189 and $1,251 respectively, compared with $2,646 and $3,262 in the corresponding prior quarter.
HZL's zinc output increased in Q3, with saleable production increasing by 46% to its highest- ever level. For the nine months period, mined and saleable metal production was 537,592 tonnes and 445,812 tonnes respectively, an increase of 14% and 34% over the corresponding prior period.
Unaudited financial summary.
During Q3, saleable silver metal production was at 24,722 kilograms, an increase of 23% compared with the corresponding prior quarter. For the nine months period, saleable silver metal production was 69,879 kilograms, an increase of 24% compared with the corresponding prior period.
The cost of production during Q3 was higher on account of higher input costs of coal, petroleum products, and met coke and a lower realisation from the sale of by - products. However, towards the end of Q3, the downward trend in the unit cost of key inputs became visible, and is expected to lower the cost of production going forward.
The construction activities at the 210,000 tpa zinc smelter and 100,000 lead smelter at Rajpura Dariba with its associated 160 MW captive power plant is progressing well and as per schedule for completion by end 2009. Progress of work at the mining projects at Rampura Agucha, Sindesar Khurd and Kayar is on schedule.
On completion of these projects, HZL will be the world’s largest integrated zinc – lead producer with a total capacity of 1,064,000 tonnes.
Source: Moneycontrol.com
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