On Thursday, Vedanta group company Hindustan Zinc Ltd (HZL) reported a 55.9% year-on-year rise in net profit to Rs 3,092 crore for the quarter ended June 30, 2022. The company posted a quarterly net profit of Rs 1,983 crore in the corresponding quarter of the previous fiscal.

In a filing to the BSE, Hindustan Zinc said net profit for the quarter rose 55.9% year-on-year and 5.6% quarter-on-quarter, mainly driven by higher LME prices but partially offset by higher input commodity prices.

Operating income for the quarter was Rs 9,387 crore, up 43.7% year-on-year, mainly due to higher zinc production and LME zinc prices and favourable exchange rates, partially offset by lower silver prices.

Compared to the first quarter of fiscal 2022, LME zinc prices and zinc metal sales increased by 34.2% and 10.2%, respectively.

Revenue increased 6.7% sequentially, primarily due to higher LME zinc prices, strategic hedging gains and higher lead and silver volumes, partially offset by lower zinc volumes and lower lead and silver prices. Lead and silver sales rose 8.6% and 9.5%, respectively.

EBITDA for the quarter was Rs 5,278 crore, up 48.3% year-on-year, mainly due to higher LME zinc and volumes. EBITDA rose 5.4% sequentially as higher LME zinc prices and lead and silver volumes were partially offset by higher costs.

The company’s total investments and cash equivalents stood at Rs 24,254 crore as of June 30, 2022, compared to Rs 20,789 crore in end-March 2022.

The company’s net investment stood at Rs 21,439 crore at the end of the June quarter, compared with a net investment of Rs 17,966 crore at the end of March 2022.

Commenting on the results, CEO Arun Misra said: “Hindustan Zinc had the best performance in the first quarter in terms of mined metals, refined metals and silver production. We are well positioned for another great year this year.”
“Getting board approval to build a fertilizer plant and additional roasters is also a welcome move. With this synergistic growth project along the value chain, we are confident of delivering lasting sustainable value to all stakeholders,” Misra said.

Sandeep Modi, Deputy and Interim Chief Financial Officer, added: “Hindustan Zinc achieved a new milestone with record quarterly revenue, EBITDA and net profit. We are strategically hedging the positive benefits of rising LME earnings. This approach helps us put in an environment of commodity inflation.”

He further said: “As a management team, we will continue to monitor the coal cost situation closely and do what we can to ensure safety in the short term and reduce heat dependence in the medium to long term through the right investments in renewable energy projects.”

Shares of Hindustan Zinc rose 2.17% to Rs 284.90 per share on NSE today.