Hindustan Zinc Q4 Results declined by 20%

India’s largest metal manufacturer Hindustan Zinc Ltd reported a 20% decline in 4th quarter profit, this is because of the lead and zinc prices fell drastically. Last year, 4th quarter they were able to make Rs 1,770 crore but in this 4th quarter the net income fell to Rs1410 crore. The company has announced its results on Friday after the market closed, so there was not much impact on the stock because of the Q4 decline. Stock gained 0.8% and closed at Rs 126.10 on April 20.

Zinc prices reduced by 16%, which is mainly required to rust-proof steel, the price averaged at $2,039 a tonne while lead fell 18% to $2,116 a tonne in the fourth quarter in London. This is the main reason for its Q4 Decline. Silver price rose by 2% to $32.6 an ounce. Silver is one of the precious metals which the company produces, it contributed some to its earnings.

When we look at the expenses of the company, it increased 17% to 16.4 billion rupees because of the higher royalty and fuel prices. Raw material costs more than doubled to 832.1 million rupees from 327.7 million rupees a year earlier. Its zinc production dropped 2% to 190,000 metric tons in the last quarter compared to last year Q4, while production of lead doubled to 37,000 tons, it said in an exchange filing on April 10. Silver output gained 77% to 88,000 tons.