Lower income as a result of subdued prices coupled with higher expenses caused Hindustan Zinc’s net profit fall by 24% for the October-December quarter to R1,811 crore compared with R2,379 crore a year earlier.
Total income of the NRI billionaire Anil Agarwal-led firm also dipped by 11% to R3,431 crore from R3,853 crore during the same quarter in 2014-15, due to lower prices in the London Metal Exchange prices and zinc premium, HZL said in a statement.
Ebitda during the quarter was R1,469 crore, which is 30% lower from a year ago period, primarily on account of lower LME prices and impact of newly-levied contribution to the District Mineral Foundation of R84 crore, it added.
Total expenses, on the other hand, rose 8% to R2,124 crore during the quarter under review, from R1,973 crore a year ago.
HZL chairman Agnivesh Agarwal said: “We are happy to report a strong refined metal production, with silver touching new highs. However, the current low zinc metal prices are contrary to the market fundamentals.”
The company is carrying out a review of its high-cost operations to ensure they are sustainable in the present weak zinc market.
As of December 2015, HZL cash and cash equivalents stood at R32,639 crore, of which R23,581 crore was invested in mutual funds, R5,575 crore in bonds and R3,480 crore in fixed deposits.