HZL Q4 Net up 8% to Rs 2,149 cr on higher other income

New Delhi, Apr 21 () Hindustan Zinc Ltd (HZL) today reported an 8 per cent growth in its March quarter net profit to Rs 2,149 crore helped by higher other income.
The firm, part of metals and mining conglomerate Vedanta Ltd, had clocked a net profit of Rs 1,997.44 crore in the year-ago quarter, it said in a regulatory filing.
However, the firm led by billionaire Anil Agarwal posted a 20 per cent decline in total income at Rs 3,132.39 crore in January-March quarter of last fiscal from Rs 4,125.68 crore during the corresponding period in 2014-15 due to lower zinc volume and depressed prices at London Metal Exchange (LME).
On the decline in revenue, HZL said: "The decrease was on account of lower zinc volumes and LME, partly offset by higher volumes of lead and silver and rupee depreciation."
It said the net profit was helped by higher other income due to mark to market gains on investment income.
"Additionally, provision for tax during the quarter was negative largely on account of substantial liquidation of investments at year end for payment of special dividend; the corresponding realised profits were set off by carried forward tax losses, significantly lowering tax for the year," it said.
On March 30, 2016, HZL Board declared a special golden jubilee dividend of 1,200 per cent or Rs 24 per share. This entails an outflow of Rs 12,205 crore, including dividend distribution tax (DDT).
"This is the largest ever single dividend paid by any company in the private sector and is the second highest in Indian corporate history," the firm has claimed.
The special dividend was in addition to the first interim dividend paid (Rs 3.80 per share) in October 2015. The total dividend outflow including DDT for 2015-16 was Rs 14,137 crore against Rs 2,207 crore a year ago, it added.
Commenting on the performance, HZL Chairman Agnivesh Agarwal said even as the year witnessed volatile commodity prices and depressed market sentiments in general, HZL continued to outperform its previous operational records.
The company has generated unparalleled value for shareholders consistently, he added.
The company said its cash and cash equivalents increased to Rs 35,235 crore as on March 31, 2016, before outflow of Rs 12,205 crore of special golden jubilee dividend including DDT.
Shares of the company, in anticipation of the results, witnessed a spurt in volume of over 2.21 times at the BSE. The scrip closed at Rs 173.95 apiece, down by 0.40 per cent from its previous closing. (MORE) NAM RNK MKJ