Hindustan Zinc Profit Beats Estimates on Higher Metal Output
Hindustan Zinc Ltd. (HZ), India’s largest zinc and silver producer, reported a better-than- expected 54 percent gain in fourth-quarter profit, aided by higher metal output.
Net income rose to 21.7 billion rupees ($401 million), or 5.13 rupees a share, in the three months ended March 31 from 14.1 billion rupees, or 3.34 rupees, a year earlier, the unit of London-based Vedanta Resources Plc (VED) said today in an exchange filing. The median of 27 analyst estimates compiled by Bloomberg was 18.2 billion rupees. Sales surged 25 percent to 38.5 billion rupees.
Earnings before interest and tax from zinc and lead climbed 37 percent to 15.6 billion rupees. Refined silver output increased 33 percent to 117 tons, while production of mined zinc rose 16 percent to 260,000 metric tons.
Total expenses gained 17 percent to 19.1 billion rupees, while fuel costs fell 14 percent to 2.76 billion rupees.
The shares of Udaipur, Rajasthan-based Hindustan Zinc rose 4.6 percent to 119.15 rupees at close of trade in Mumbai today.
Billionaire Anil Agarwal, who owns the Vedanta group, is seeking to buy the Indian government’s remaining stake in Hindustan Zinc. The shares will give Vedanta’s Mumbai-based unit Sterlite Industries (India) Ltd. (STLT) control over a combined 964,000 tons of zinc and lead capacity and cash and equivalent of $3.3 billion.
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