Hindustan Zinc net profit drops 21% to Rs 2,038 cr

Vedanta group firm Hindustan Zinc Ltd (HZL) on Friday said its consolidated net profit declined 21 per cent to Rs 2,038 crore for the quarter ended March 31, 2024, mainly on account of lower zinc price.

The company posted a consolidated net profit of Rs 2,583 crore in the corresponding quarter of the previous fiscal. "Net profit for the quarter stood at Rs 2,038 crore, marginally up sequentially and down 21 per cent Y-o-Y (Year-on-Year)," Hindustan Zinc said in a statement.

The drop in net profit is "on account of lower zinc prices, partly offset by significant cost improvement by 11 per cent and silver volume improvement by 5 per cent," the company said. The consolidated income of the company in the January-March quarter declined to Rs 7,822 crore, over Rs 8,863 crore in the year-ago period. "FY2023-24 has been a year of solid growth for HZL, with mined metal, refined metal, and silver recording its highest historic production levels, supported by a backdrop of fatality-free operations. As part of our strategy, it was driven by our increased focus on silver & metal production and cost optimisation. "The company withstood the market headwinds during the year, ensuring preservation of margins and shareholder value," the company's Chief Executive Officer Arun Misra said.