Hindustan Zinc shares slump nearly 3% on decline in net profit for March quarter

Shares of Hindustan Zinc sank nearly 3 percent on April 24 as the company on Friday reported a 12-percent on-year decline in the consolidated net profit at Rs 2,583 crore for the March quarter of the fiscal year ended 2023.

The drop in net profit weighed on the sentiments of investors. At 10.33 am, the stock price of Hindustan Zinc was around Rs 315.70 per share, down 2.7 percent from the previous close on BSE.

Total sales for the company came in at Rs 8,509 crore, down 3 percent from Rs 8,797 crore in the corresponding quarter of the previous year. Zinc sales dropped the most at 9 percent, while other metals saw a rise in sales.

Revenue from operations too dropped 4 percent to Rs 8,281 crore for the reporting quarter, mainly on account of lower zinc, lead and silver prices partly offset by higher metal and silver volumes.

For the quarter, the company reported its best-ever production of mined metal at 301 kilotonnes (kt) and refined metal at 269 kt.

“We are progressing well on our strategic development projects directed towards capacity expansion, synergetic growth, and value integration,” CEO Arun Misra said.

The share prices of Hindustan Zinc have risen by more than 85 percent in the last three years. However, the stock has fallen over eight percent in the past year.

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