Hindustan Zinc's quarterly profit doubles on higher metal prices, output

Hindustan Zinc

Mon 11:27

Oct 19 (Reuters) - India's Hindustan Zinc HZNC.NS reported a more than two-fold rise in quarterly profit on Monday, helped by higher zinc and silver prices and increased production.

   Here are some details: 
The Vedanta group company has operations spanning the mining, processing and refining of zinc, lead and silver, as well as wind power generation
Consolidated net profit was at 64.12 billion rupees  ($675.5 million) for the three months ended September 30 against 26.49 billion rupees a year earlier
Net profit margin climbed to 42% from 31% a year ago
The results come as zinc prices have surged on supply disruptions and expectations of a global market deficit
Firmer silver prices, supported by demand for precious metals, have improved the profit outlook for Hindustan Zinc, according to Jefferies
Hindustan Zinc's mined metal production rose 5% on-year to 271 kilo tons in the quarter, while refined metal production climbed 7% to 264 kilo tons
The company's silver production rose 20% to 173 tons, while revenue from silver sales more than doubled
Zinc production costs, excluding royalty, fell 29% to $703 per ton, supported by higher production, better ore grades and increased renewable power consumption, the company said
The firm, which commands roughly three-fourths of India's zinc market, reported a 76.5% rise in total revenue from operations to 150.93 billion rupees
Total expenses rose 31.5% to 68.95 billion rupees

($1 = 94.9300 Indian rupees)

 (Reporting by Surbhi Misra and Abhinav Parmar in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Mailto: Surbhi.Misra@thomsonreuters.com))