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Hindustan Copper to pay out highest dividend at 30.01% of net profit in FY22

He said copper prices remained volatile on economic slowdown fears and supply-demand imbalance sparked a record-breaking rally in 2021 pushing prices to a high of $10.730 per metric tonne in March 2022.

Hindustan Copper to pay out highest dividend at 30.01% of net profit in FY22
The total payout on account of the dividend would be Rs 112.17 crore.

Hindustan Copper (HCL) on Wednesday announced the highest-ever dividend per share at 30.01% of the net profit in FY22 with a net profit of Rs 373.78 crore, a 338% jump over the previous year’s net profit of Rs 109.98 crore. The total payout on account of the dividend would be Rs 112.17 crore.

Addressing the company’s 55th annual general meeting, chairman and managing director Arun Kumar Shukla said the company’s profits have been driven by the direct sale of concentrate and higher LME prices for supply-demand imbalance. “During FY22 there has been very marginal production of cathode and CC wire rod due to direct sale of concentrate by the company the same give higher price,” Shukla said.

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He said copper prices remained volatile on economic slowdown fears and supply-demand imbalance sparked a record-breaking rally in 2021 pushing prices to a high of $10.730 per metric tonne in March 2022. “Copper prices have since been volatile on fears of the global recession. The demand for copper will rise on the back of a tight supply situation coupled with decreasing grade of copper ore mined all over the world leading to a market environment for higher prices. Copper demand will increase owing to the progress of implementation of hybrid and electric vehicles worldwide with associated charging infrastructure, decarbonisation policy push by the US and EU and more and more emphasis on green energy to mitigate climate change,” Shukla said.

Copper being the green metal and also termed the new oil has been termed as a core driver for moving the global economy towards net zero emission. Further, the antimicrobial property of copper finds new application in the health sector in a post-pandemic world, he added.

While replying to the shareholders’ queries, Shukla said, production from HCL’s flagship project, Malanjkhand underground mine has already commenced. The company has repaid the loan of Rs 729 crore in FY22 from its internal accruals, he informed the shareholders. HCL has been rated ICRA A1+, the best possible rating on a short-term scale, & ICRA AA+ (stable), the second-best rating on a long-term scale, for its borrowing limits.

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