Vedanta group firm Hindustan Zinc (HZL) today reported nearly 27 per cent jump in its net profit at Rs 1,612.54 crore during the quarter ended December 31, 2012, helped by higher revenues from silver business, increase in other income and decline in tax outgo.
The Rajasthan-based company had reported a net profit of Rs 1,273.60 crore in the corresponding quarter of 2011-12. Meanwhile, the company, in a statement, said that its Board today approved next phase of growth plan to increase mined metal production capacity to 1.2 million tonnes per annum (MTPA), involving a capex of USD 1.5 billion in 6 years.
"The plan comprises of developing a 3.75 MTPA underground mine at Rampura Agucha and expanding Sindesar Khurd mine from 2 MTPA to 3.75 MTPA, Zawar mines from 1.2 MTPA to 5 MTPA... The growth plan will increase mined metal (MIC) production capacity to 1.2 MTPA," it said.
The company will invest USD 1.5 billion on developing these projects, it further said, adding that "annual capital expenditures for these projects will average USD 250 million a year over next six years".
In terms of performance, net sales of the company was up 14.33 per cent to Rs 3,140.43 crore during the third quarter vis-a-vis Rs 2,746.77 crore of the October-December quarter of the previous fiscal, it said in a BSE filing.
HZL's income from silver business rose by more than 2.5 times to Rs 644.43 crore during the quarter due to 103 per cent increase its production at 117 tonnes and higher prices at the London Metal Exchange (LME).
However, sales of the zinc and lead business – the primary business of HZL-- was flat at Rs 2,472.66 crore in the third quarter due to price fluctuations at the LME. Production of both, mined metal and lead, was up 11 per cent at 2,33,000 tonnes and 32,000 tonnes respectively in the quarter.
HZL earnings was also aided by over 25 per cent rise in its other income, mainly cash deposits in banks, at Rs 506.27 crore during the quarter. Besides, its reported a decline of nearly 40 per cent in its tax outgo to Rs 203.05