Hindustan Zinc, a Vedanta group company and one of the world’s largest integrated producers of zinc-lead and a leading producer of silver declared its FY16 first quarter result. The net profit increased by 19% for the quarter to Rs. 1,921 Crore driven by higher operating profit.

 Revenues for the Company were up 21% to Rs. 3,596 Crore in Q1 FY 2016 as compared with Rs. 2,963 Crore in the corresponding prior period. EBITDA increased by 24% to Rs. 1,672 Crore in Q1 FY 2016 due to higher revenues and lower cost of production, partly offset by one-time expense related to RPO for earlier years, higher royalty and District Mineral Foundation (DMF) provisioning.

Agnivesh Agarwal, Chairman, HZL said, “Zinc price has held up better in an environment of retreating base metal prices. We anticipate later part of the year to be stronger on expectation of global zinc deficit due to mine closures. Indian manufacturing sector is showing signs of recovery with improved order books and flow of funds backed by Government initiatives, thus providing a positive outlook for the industry.”

Mined metal production increased by 42% at 232,162 MT during the quarter, as compared with 163,131 MT a year ago. The increase was driven primarily by higher ore production from Rampura Agucha, Kayad and Sindesar Khurd mines. Integrated saleable zinc, lead and silver metal production during the quarter increased by 35%, 27% and 33% respectively compared to a year ago.

The expansion projects at Rampura Agucha and Sindesar Khurd shaft for the Company are progressing well. With the planned extension of the open cast mine, the overall production plan at Rampura Agucha is on track. The shaft project at Sindesar Khurd continues to be ahead of schedule.

Hindustan Zinc has a world-class resource base with total reserve & resource of 375.1 million MT. The Company has a track record of consistently growing its reserve & resource base since 2003 and currently has a mine life of over 25 years.

The Company is self-sufficient in power with an installed base of 474 MW coal-based captive power plants. Additionally, it has green power capacity of 309 MW including 274 MW of wind power and 35 MW of waste heat power. The Company has an operating workforce of over 18,000 including contract workforce.