Vedanta group firm Hindustan Zinc Ltd (HZL) on Friday reported a 35.4 per cent fall in consolidated profit to Rs 1,729 crore for the September quarter due to lower income.
The company had posted a consolidated profit of Rs 2,680 crore in the year-ago period, HZL said in a filing to the BSE.
“Net profit for the quarter was at Rs 1,729 crore… and for H1 (April-September) FY24 it was Rs 3,693 crore, down 36 per cent year-on-year, primarily on account of lower EBITDA partly offset by lower tax expense,” the company said in a statement.
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Consolidated income of the company during the July-September period declined to Rs 7,014 crore, as compared to Rs 8,703 crore in the year-ago period.
The company’s board has approved pledging of 26 per cent equity held by Hindustan Zinc in Serentica Renewables India 4 in favour of the lenders.
HZL CEO Arun Misra said the company witnessed significant milestone achievements in its expansion efforts during the quarter.
“With delivery of steady operational performance in the first half of the year and ramped up facilities, we are confident of delivering a standout financial year,” Misra said.
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HZL Chief Financial Officer Sandeep Modi said the company is well positioned to execute its strategic priorities in FY24, revolving around cost optimisation, digital advancement enhancing its competitive edge, healthy cash flows and robust balance sheet, thereby generating a long-term sustainable value for shareholders.
HZL’s mined metal production for the quarter dropped 1.4 per cent to 2,52,000 tonnes, while refined metal production was at 2,41,000 tonnes, down 1.8 per cent.
The company’s integrated zinc production during the quarter dropped 2.3 per cent to 1,85,000 tonnes.
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Refined lead production for the quarter was flat at 57,000 tonnes, the company said, adding that it generated a cash flow of Rs 2,648 crore and paid a dividend of Rs 2,958 crore.
Hindustan Zinc is the country’s largest and the world’s second-largest integrated zinc producer.
HZL is a subsidiary of Vedanta Ltd, which owns 64.9 per cent stake in the company while the government holds a 29.5 per cent stake.