Hindustan Zinc posts 7% y-o-y increase in metal production

3 Jan 2024 , 01:54 PM

Hindustan Zinc shares rose about 0.6% on January 3 after the company reported a 7% rise in mined metal output in the third quarter. 

At around 1.49 PM, Hindustan Zinc was trading 0.54% higher at Rs 319, against the previous close of Rs 317.30 on NSE.

According to a regulatory disclosure on January 2, Hindustan Zinc reported a 7% increase in mined metal production compared to the previous year and an 8% rise compared to the last quarter, reaching a total of 271,000 tonnes. 

This upswing was attributed to a combination of enhanced mined metal grades and increased ore production at Rampura Agucha and Sindesar Khurd Mine.

Furthermore, refined metal production increased 7% quarter-on-quarter to 2,59,000 tonnes due to improved plant availability. It increased by around 1% year-on-year.

According to the filing, refined lead output increased by 21% year-on-year to 56,000 tonnes due to pyro operations in lead mode to optimise silver production.

During the second quarter of the fiscal year 2024, the subsidiary of Vedanta recorded a 35% year-on-year decrease in net profit, amounting to Rs 1,729 crore. This decline was mainly attributed to reduced EBITDA, partially mitigated by decreased tax expenses. 

The revenue for the corresponding period witnessed an 18.5% on-year decline, reaching Rs 6,619 crore, and the EBITDA margin experienced a 29% drop, totaling Rs 3,139 crore.

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