Vedanta Group firm Hindustan Zinc Ltd on Friday reported an 18 percent year-on-year (YoY) jump in net profit at Rs 2,928 crore for the fourth quarter ended March 31, 2022, mainly driven by higher volumes and higher metal prices.

In the corresponding quarter last year, the company posted a net profit of Rs 2,481 crore. CNBC-TV18 Polls had predicted a profit of Rs 3,004 crore for the quarter under review.

Net profit for the full year was Rs 9,629 crore, up 20.7 percent YoY. Total revenues for the quarter rose 26.6 percent YoY to Rs 8,797 crore from Rs 6,947 crore in the year-ago quarter, led by higher zinc volumes & zinc LME prices as well as favourable exchange rates while partly offset by lower lead & silver volumes. Over the year, zinc & lead LME prices were up 36.5 percent & 15.7 percent respectively.

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Sequentially, revenue increased 10.1 percent, primarily due to higher zinc LME & metal volumes and partially offset by lower silver volumes. Sequentially zinc and lead sales volumes increased 0.9 percent & 5.1 percent respectively, while silver sales volumes were 6.3 percent lower in line with the production.

For the full year, revenue was Rs 29,440 crore, an increase of 30.1 percent YoY, led by higher zinc volumes & LME prices while being partially offset by lower lead and silver volumes.

Zinc cost of production before royalty (COP) was $1,136 (Rs 85,378) per MT for the quarter, higher by 20.2 percent YoY and lower by 1.0 percent sequentially. The COP for the full year was $1,122 (Rs 83,511) per MT, up 17.6 percent YoY. The COP was affected largely on account of higher coal prices & input commodity inflation, partially offset by higher volume, better Sulphuric Acid realizations & improved recoveries.

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EBITDA for the quarter was Rs 5,007 crore, up 29.2 percent YoY and 14.0 percent sequentially. EBITDA for the full year was at Rs 16,289 crore, up 38.8 percent YoY. The rise was primarily due to higher zinc & lead LME prices, higher premiums as well as higher silver prices.

Commenting on the performance, Arun Misra, CEO, said, "Hindustan Zinc delivered best-ever annual mined metal production & touched the record one million tonne mark this year. Our production of refined metal was also the highest ever. With the exit run-rate for refined metal at 1.2mtpa, we are fully geared for another stellar performance this year.

Our focus is to produce more and more world-class value-added zinc alloy products with the use of the latest technology & equipment. Hindustan Zinc is committed to decarbonize its mining operations and deliver on its ESG road map to achieve net-zero by 2050."

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Shares of Hindustan Zinc ended at Rs 344.95, down by Rs 4.75, or 1.36 percent on the BSE.

First Published:Apr 22, 2022 3:43 PM IST