Hindustan Zinc announced more than a twofold increase in quarterly profit on Monday. This growth was attributed to rising prices for zinc and silver, as well as increased production volumes.
The company, which is part of the Vedanta group, operates in the fields of mining, processing, and refining of zinc, lead, and silver, as well as wind energy generation. Consolidated net profit for the three months ending September 30 amounted to 6,412 crore rupees (USD 675.5 million), compared to 2,649 crore rupees the previous year.
The net profit margin increased to 42 percent from 31 percent recorded the previous year. These financial results came amid a sharp rise in zinc prices, linked to supply disruptions and expectations of a global market shortage.
According to the analytical agency Jefferies, higher silver prices, supported by demand for precious metals, improved the profitability outlook for Hindustan Zinc.
The company's mined metal production grew by 5 percent year-on-year, reaching 271,000 tonnes in the reporting quarter. Refined metal production increased by 7 percent, totaling 264,000 tonnes. Meanwhile, silver production rose by 20 percent to 173 tonnes, and revenue from silver sales more than doubled.
The company stated that the cost of zinc production, excluding royalties, decreased by 29 percent to $703 per tonne. This reduction was achieved through increased production, improved ore quality, and greater consumption of renewable energy.
The firm, which controls approximately three-quarters of the zinc market in India, reported a 76.5 percent increase in total operating income, reaching 15,093 crore rupees. The company's total expenses increased by 31.5 percent to 6,895 crore rupees.
