Hindustan Zinc hits a new high on record metal production in Q4


Hindustan Zinc galloped 3.56% to Rs 148.35 at 10:03 IST after the company's mined metal production rose 19% to a record 2.31 lakh tonnes in Q4 March 2011 over Q4 March 2010.

The Hindustan Zinc stock rose 2.95% to Rs 143.25 on Friday, 8 April 2011, when the company announced its production data during trading hours that day.

Meanwhile, the BSE Sensex was down 52.91 points, or 0.27%, to 19,398.54.

On BSE, 4.28 lakh shares were traded in the counter compared with average volume of 4.78 lakh shares over the past two weeks.

The stock hit a high of Rs 149 so far during the day, which is also a record high. The stock hit a low of Rs 144.

Hindustan Zinc's mined metal production rose 9% to 8.40 lakh tonnes in the year ended March 2011 over the year ended March 2010 due to higher contributions from Rampura Agucha and Sindesar Khurd mines.

Refined zinc production rose 29% to 1.94 lakh tonnes in Q4 March 2011 over Q4 March 2010. It rose 23% to 7.12 lakh tonnes in the year ended March 2011 over the year ended March 2010. The new 210 kilo tonnes per annum (ktpa) Rajpura Dariba Smelter, which was commissioned in March 2010, contributed 46,000 tonnes and 1.65 lakh tonnes in Q4 March 2011 and in the year ended March 2011, respectively.

Lead production fell 10% to 18,000 tonnes in Q4 March 2011 over Q4 March 2010. It fell 13% to 63,000 tonnes the year ended March 2011 over the year ended March 2010.

Silver production was 50,000 kilograms in Q4 March 2011, in line with Q4 March 2010. Silver production for the year was marginally higher at 1.79 lakh kilograms.

Commissioning of the 100 ktpa lead smelter at Dariba is expected to be completed in Q1 June 2011, which will increase lead and silver production. The new 1.5 million tonne per annum (mtpa) mill at Sindesar Khurd (SK) mine in Rajasthan is ramping up well, and is expected to achieve its rated capacity in the year ending March 2012.

The 48 megawatts (MW) of the 150 mw expansion in wind power generation capacity announced in January 2011 was commissioned during the quarter, and the remaining 102 MW is expected to be commissioned in the year ending March 2012. Post the expansion, the company's wind power generation capacity will increase to 273 MW. With the commissioning of second 80 MW captive power plant (CPP) unit in 11 February 2011, full 160 MW CPP capacity at Dariba is operational.

Hindustan Zinc's net profit rose 12.3% to Rs 1289.58 crore on 17.4% increase in net sales to Rs 2601.47 crore in Q3 December 2010 over Q3 December 2009.