Hind Zinc net dips

Print this page Posted on : 07-23-2009 by recycleinme.com

Mumbai, July 22

Hindustan Zinc, a Vedanta Resources Group company, has reported a 15 per cent fall in net profit at Rs 719 crore for the first quarter ended June 30, 2009, against Rs 848 crore in the same period last year. Total income was down eight per cent at Rs 1,512 crore (Rs 1,644 crore).

Refined zinc production rose nine per cent to 1.39 lakh tonnes but was lower when compared on a sequential basis due to constraints at the hydro smelters in Chanderiya, Rajasthan, according to a company release on Wednesday.

Sales in the quarter were higher through offloading 73,962 tonnes of surplus zinc concentrate.

Lead output was down 12 per cent at 15,218 tonnes (17,298 tonnes). Saleable silver production was 29,527 kg, an increase of 25 per cent.

The positive impact of higher volumes and rupee depreciation on sales and net profit was more than offset by the sharp decline in zinc prices on the London Metal Exchange (LME).

"However, revenues and net profit during Q1 improved by 20 per cent and 30 per cent, respectively, on a sequential basis," the company said.

Price trends

The average price of zinc price on the LME in the first quarter of FY'10 was $1,476 a tonne against $2,115 in the same period last fiscal, while lead traded at $1,506 and $2,316 a tonne, respectively.

The Hindustan Zinc scrip was down two per cent at Rs 625 on Wednesday.

Source : Business Line