Hindustan Zinc Limited on Wednesday announced its results for the second quarter ended September 30, 2013. HZL profit after tax increased by 7% to Rs. 1640 crore, and the company declared an interim dividend of 80% at Rs. 1.60 per share on equity shares of Rs. 2 each, flat from last year. The earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 28% to Rs. 1904 crore.
The company reported a revenue increase of 25% to Rs. 3,521 crore in Q2 and 17% to Rs. 6,460 crore in the first half of the financial year, as compared with the corresponding prior periods. The increase was driven by higher sales volume and rupee depreciation, partially offset by lower silver price.
Mined metal production has been reported at 221,646 MT in Q2, as compared with 190,491 MT in the corresponding prior period. For six month period, mined metal production was 459,471 MT as compared to 377,133 MT in the first half of financial year 2013. HZL states that increase occured due to higher production at Rampura Agucha and restarting of Zawar mines.
Integrated refined zinc production was up 28% to 194,814 MT in Q2 and up 19% to 367,814 MT in the first half, compared to corresponding prior periods. The increase was due to improved operational efficiencies, according to the company.
The company also reported increase in production of integrated refined lead by 29% and 13% to 28,978 MT in Q2 and 56,445 MT in H1 respectively compared to previous year due to improved utilization of smelter capacity.
The press release states that HZL expects a mined metal production of around 9,50,000 MT in financial year 2014. The momentum in integrated zinc-lead production in the first half of the financial year is expected to continue in the second half. Furthermore, HZL projects integrated saleable silver production to be around 335 MT in FY 2014.
The company's press release states that the Rampura Agucha underground mine project is operational via ramps and commercial production will ramp up in Q3 and Q4 of financial year 2014. The Kayad mine project will also commence commercial production in the current fiscal year.
The company also reported cash and cash equivalents of Rs. 23,632 crore as on September 30, 2013.
Mr Agnivesh Agarwal, Chairman, Hindustan Zinc, said, “Market environment is challenging as global economy faces risks and uncertainty and growth in emerging economies is contingent upon global liquidity situation. We remain focused on sustainability of our operations and are committed to increasing our mining capacity and maintaining our cost efficiency".