Hindustan Zinc Shares Down Over 3% As Q1 Net Profit Declines

Mumbai: Shares of Hindustan Zinc (HZL) on Thursday went down by over 3 per cent after the company reported a 47 per cent fall in net profit for the quarter ended June 30.

The stock lost 3.14 per cent to Rs 187.95 on BSE. At NSE, it fell by 2.98 per cent to Rs 188.65.

Hindustan Zinc (HZL) yesterday reported a 47 per cent fall in net profit at Rs 1,037 crore for the quarter ended June 30 mainly on account of higher cost of production, taxes and depreciation.

The firm, part of billionaire Anil Agarwal-led Vedanta Ltd, had clocked a net profit of Rs 1,940.14 crore in the year-ago period, it had said in a regulatory filing.

Total income of the company also took a hit and fell 30 per cent to Rs 2,530.61 crore in April-June this fiscal from Rs 3,630.17 crore during the same period in 2015-16.

On the decline in revenues, HZL said it was on account of lower volumes, primarily zinc, and lower LME (London metals Exchange) partly offset by higher rupee depreciation and higher silver price.

On a sequential basis, revenue decreased by 19 per cent due to lower volumes, partly offset by higher zinc & silver prices, it added.

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