Hindustan Zinc's Q1 profit falls on weak zinc, lead prices
BENGALURU - Indian miner Hindustan Zinc on Friday reported a fall in first-quarter profit, dragged by weak zinc and lead prices, and despite reduced expenses and tax burden.
The company's consolidated net profit fell 36.5% to 19.64-billion rupees ($239.5-million).
Revenue from operations fell to 71.11-billion rupees from 92.36-billion rupees a year ago, which it attributed to lower zinc and lead prices and lower lead volumes - though it was partially offset by higher zinc volumes and silver prices.
Prices of zinc and lead on the London Metal Exchange, on which Hindustan Zinc is registered, have fallen from last year amid persistently high interest rates and tepid demand, especially from top metals consumer China due to a stalling post-pandemic recovery.
Zinc is primarily used in making galvanised steel, which is used in the construction and automotive industries.
The company's integrated zinc production was up 1% on-year at 209 000 metric tons, while lead output was down 6% and silver was up 1%.
Zinc's cost of production before royalty was down 5.6%, aided by softened coal and commodity prices, the company said.
Total expenses fell 1.4%, while the net tax expenses were down 59%.
The mined metal and refined metal production in FY24 is expected to be higher than last year, the company said in a statement.
Zinc's cost of production in FY24 is expected to be flat on-year, while project capex for the year is expected to be in the range of $175-million to $200-million, it said.
The Indian government may delay the plan to sell its shares in Hindustan Zinc, sources told Reuters on Wednesday.
Shares of Hindustan Zinc fell 1.8% after the results. The shares rose 3.07% in the June quarter, compared to a fall of 22.24% in the year-ago period.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
