Hindustan Zinc Ltd. (HZL) faced a decline of 47% in the net profits,
during the first quarter of FY17, which is led by taxes, higher
depreciation and lower investment income. It has been reported in the
latest India business news that the HZL’s revenue went down by 30% to Rs
2501.47 crore, as compared to Rs 3595 crore in the previous year. This
has been led by mainly the lower prices offered at London Metal Exchange
and the lower zinc volume. However, higher silver prices and higher
rupee depreciation are also partly responsible for this decline.
About 33% y-o-y decline has been experienced by the company in EBITDA during the quarter. It happened largely because of the reason that the production cost of the zinc metal has shown an increase of 22%, during the quarter. However, the impact was partly offset by lower commodity and coal prices, higher by-product credits and the cost optimization projects in procurement.
In the case of silver, EBITDA went up 32% during the quarter; its value reached Rs 293 crore from Rs 222 crore. According to HZL’s statement, a smaller investment corpus, in the beginning of the quarter, resulted in the lower investment income. And this lower investment along with higher depreciation and higher tax rates, led to the decline in the net profits by 47%.
Agnivesh Aggarwal, the chairman at HZL, said that in line with their expectations and zinc fundamentals, the zinc prices increased 14% in the first quarter of FY2017, as compared to the previous quarter. He said that the rally in the zinc prices along with an increase in the volumes has contributed to their profits, which has reached 20% at present.
Moreover, the statics reported in India business news illustrate that on the production front too, the production of integrated zinc and lead also went down by 46% and 11% respectively.
About 33% y-o-y decline has been experienced by the company in EBITDA during the quarter. It happened largely because of the reason that the production cost of the zinc metal has shown an increase of 22%, during the quarter. However, the impact was partly offset by lower commodity and coal prices, higher by-product credits and the cost optimization projects in procurement.
In the case of silver, EBITDA went up 32% during the quarter; its value reached Rs 293 crore from Rs 222 crore. According to HZL’s statement, a smaller investment corpus, in the beginning of the quarter, resulted in the lower investment income. And this lower investment along with higher depreciation and higher tax rates, led to the decline in the net profits by 47%.
Agnivesh Aggarwal, the chairman at HZL, said that in line with their expectations and zinc fundamentals, the zinc prices increased 14% in the first quarter of FY2017, as compared to the previous quarter. He said that the rally in the zinc prices along with an increase in the volumes has contributed to their profits, which has reached 20% at present.
Moreover, the statics reported in India business news illustrate that on the production front too, the production of integrated zinc and lead also went down by 46% and 11% respectively.
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