The company said that the increase in revenue was led by higher metal volumes, higher zinc & silver prices and rupee depreciation partly offset by lower lead prices. Zinc volumes increased by 6% year-on-year (YoY) and lead by 30% YoY in line with higher production and robust demand.
EBITDA for the quarter soared to Rs 3,314 crore, up 45% YoY and 12% sequentially on account of higher revenue and well managed operating costs.
The company's net cash and cash equivalents as at end of 31 December 2020 was Rs 10,987 crore as compared to Rs 17,832 crore at the end of the second quarter (Sept'20) and was invested in high quality debt instruments.
Commenting on the Q3 performance, Arun Misra, CEO, said: We have delivered record production volumes yet again despite challenging operating environment due to Covid. Our steadfast focus on strengthening fundamentals will allow us to operate at targeted run-rate production in Q4, in turn setting the stage right for next fiscal year. We are leveraging technology for increased efficiency at our mines & smelters and more importantly to ensure safe operations in these extraordinary times.
Swayam Saurabh, CFO, said: Our unwavering commitment to invest in cutting edge technology and increased digitization of our operations, along with other structural cost reduction initiatives has helped to successfully bring down the cost at sustainable low levels. Our firm focus on free cash flow generation through working capital optimization has enabled us to deliver industry-leading shareholder returns.
In its outlook, the company said: “We previously guided to achieve mined metal and finished metal production of 925-950 KT each and saleable silver production of c.650 MT in FY21. We also guided zinc cost of production to remain below $1,000 per MT and project capex between $100 million and $140 million for the year.”
Hindustan Zinc is an integrated producer of zinc, lead and silver. The scrip shed 0.33% to Rs 298.30. It traded in the range of 295.05 and 314.80 so far during the day.
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