Commodity prices, especially metals have been down and out yet in this scenario it is a set of credible numbers which Hindustan Zinc posted for Q2FY16. A subsidiary of Vedanta, the company’s posted a 6% (YoY) jump in net sales at Rs.4033 crore and net profit showed a 5% growth. Though LME and zinc prices were down, growth was led by higher volumes and rupee depreciation. EBITDA showed a 9% rise at Rs.2000 crore while tax outgo showed a whopping 89% jump. A 25% rise in other income helped. The company managed to keep a tight leash on operating costs, which were up just a little over 1%. There was also a Rs.140 crore write back of excess provisioning it made towards District Mineral Foundation – this is notified by the Govt and the company has to pay 30% of royalty for existing mining leases, payable w.e.f from 1st Jan’15.

During the quarter, mined metal production rose 13% (YoY) at 240kt, driven by higher ore production across mines. Integrated zinc metal production rose 22% to 211kt due to enhanced smelter efficiency and conversion of WIP inventory. Saleable lead and silver showed the highest ever production. But realisations were down – zinc was down 20%, lead was down 21%. As of 30th Sept 2015, cash balance was at Rs.34,568 crore.