Hindustan Zinc posts 15% drop in Q2 net profit

Hindustan Zinc on Wednesday reported 15% drop in net profit for the quarter ended on September 30. The company posted a net profit of Rs 1901.8 crore as against Rs 2248.4 crore for the quarter ended on September 30, 2015.

As per the regulatory filing, the company's total income decreased from Rs 5193.2 crore for the quarter ended on September 30, 2015 to Rs 4647.6 crore for the quarter ended on September 30, 2016, a dip of 10%.

In Q2FY17, the company's EBITDA stood at Rs 2,077 crore, up 84% on quarter-on-quarter basis and down 6% year-on-year basis. 

Commenting on the results, Agnivesh Agarwal, Chairman, Hindustan Zinc, said, "The price rally in zinc continued this quarter with prices climbing 18% from the previous quarter, consistent with its strong fundamentals. Silver prices too have rallied coupled with increasing silver volumes. Favourable market scenario and company's smooth transition to underground mining has boosted investor confidence, heralding the company's entry in the top 25 club in terms of market capitalization in India".

As on September 30, the company's net cash and cash equivalent was Rs 25,166 crore, out of which Rs 22,726 crore was invested in mutual funds and Rs 4,331 crore in bonds, said the company.

The shares of the company closed at Rs 248.20 per piece, up 1.37%, or Rs 3.35 on BSE.