Hindustan Zinc reports 6.7 pct drop in net profit on Q2FY21; Declares interim dividend of Rs 21.3 per share
Vedanta group firm Hindustan Zinc Ltd (HZL) on Tuesday, October 20, 2020, reported a 6.7 per cent year-on-year drop in net profit to Rs 1,940 crore for the quarter ended on September 30, 2020, due to high expenses
Vedanta group firm Hindustan Zinc Ltd (HZL) on Tuesday, October 20, 2020, reported a 6.7 per cent year-on-year drop in net profit to Rs 1,940 crore for the quarter ended on September 30, 2020, due to high expenses. The company had posted a net profit of Rs 2,081 crore in the year-ago period, HZL said in a filing to BSE.
Revenue from operations of the company increased 25 per cent to Rs 5,660 crore in the July-September period from Rs 4,511 crore posted in the same period in the last financial year, i.e. FY20. Total expenses of the company during the quarter increased to Rs 3,428 crore from Rs 3,014 crore in the year-ago period.
Its EBITDA increased by 39 per cent to Rs 2,952 crore in the second quarter of the financial year 2020-21 (FY21) against Rs 2,117 crore posted in the same quarter of the financial year 2019-20 (FY20). The margin advanced to 52.15 per cent in Q2FY21 against 46.93 per cent posted in Q2FY20.
Commenting on the results, company's CEO Arun Misra said, "On the back of streamlined operations, we continue to deliver record volumes despite the challenges posed by the pandemic. We are setting up Hindustan Zinc for its next phase of growth and are confident to deliver superior value to our stakeholders in a sustainable manner." The company's CFO Swayam Saurabh said that HZL's operational discipline and focused cost optimisation programmes leveraging technology and digitalisation are driving its cost lower and is evident in its financial performance.
Besides, the company's board also declared an interim dividend of Rs 21.3 per share amounting to Rs 9,000 crore for FY21. Vedanta will get Rs 5843 crore as a dividend. Vedanta Ltd. holds about 64.9% stake in Hindustan Zinc. Wednesday, October 28, 2020, has been decided as the record date for the purpose of determining the eligibility for payment of interim dividend. The interim dividend will be paid within the stipulated timelines as prescribed under law.
The company's mined metal production for the quarter was up 9 per cent quarter-on-quarter to 2,38,000 tonnes on account of higher ore production. Mined metal production was driven by higher ore output resulting from better mining planning and effective targetting with the increased use of technology. Integrated metal output for the quarter was 237,000 tonnes, up 13 per cent from a year ago, it said.
"Due to ongoing COVID-19 restrictions including visa restriction of Chinese nationals, commissioning of Fumer plant at Chanderiya is delayed and efforts are ongoing for early commissioning," the company said. As on September 30, 2020, the company's gross cash and cash equivalents was Rs 27,631 crore. Shares of the company closed at Rs 222.95 apiece on BSE, up 0.97 per cent.