Hindustan Zinc Limited Announces Unaudited Earnings and Production Results for the First Quarter Ended June 30, 2018; Provides Production Guidance for the Year 2019
July 23, 2018 at 06:53 am EDT
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Hindustan Zinc Limited announced unaudited earnings and production results for the first quarter ended June 30, 2018. For the quarter, the company's total income was INR 52,580 million compared with INR 45,240 million a year ago. Profit after taxes was INR 19,180 million compared with INR 18,890 million a year ago. EPS were INR 4.54 against INR 4.47 a year ago. EBITDA was INR 27,850 million compared with INR 24,040 million a year ago. Revenue from operations during the quarter was INR 53,100 million, an increase of 16% y-o-y primarily due to higher zinc LME price, rupee depreciation and higher lead & silver volumes, partly offset by lower zinc volume. Lower metal volumes led to a sequential decline in revenue. Additionally, Net Profit was impacted by lower investment income on account of mark-to-market loss on debt investments due to spike in interest rates.
For the quarter, the company reported mined metal production of 212,000 MT against 233,000 MT a year ago. Integrated zinc production was down 11% y-o-y and down 17% sequentially to 172,000 MT on account of lower availability of zinc mined metal. Integrated lead production of 42,000 MT was achieved during the quarter, up 20% y-o-y in line with the availability of lead mined metal and down 16% sequentially due to maintenance related shutdowns. Integrated silver production was 138 MT, up 20% y-o-y on higher SKM production and better silver grades. Sequentially, silver production declined by 19% in line with lead production.
The company expects silver production to be in the range of 650 to 700 MT and COP before royalty is projected to be in the range of USD 950 to 975 per MT in fiscal 2019.
Hindustan Zinc Limited is an India-based company, which is engaged in exploring, extracting, processing minerals, and manufacturing metals and alloys. The Company produces zinc, lead, silver, commercial power and alloys. Its segments include Zinc, Lead, Silver & others and Wind energy. Its operations include five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulfuric acid plants, one silver refinery plant, six captive thermal power plants and four captive solar plants in the state of Rajasthan. In addition, the Company also has a rock-phosphate mine in Matoon, near Udaipur in Rajasthan and zinc, lead, silver processing and refining facilities in the state of Uttarakhand. The Company also has wind power plants in the states of Rajasthan, Gujarat, Karnataka, Tamil Nadu and Maharashtra and solar power plants in the state of Rajasthan.
Hindustan Zinc Limited Announces Unaudited Earnings and Production Results for the First Quarter Ended June 30, 2018; Provides Production Guidance for the Year 2019