Hindustan Zinc Ltd. (HZL), which is owned by Vedanta, posted a consolidated net profit of $2,680 crore, an increase of around 33% year over year. Revenue from operations increased by more than 36% YoY to $8,336 crore, thanks to larger volumes of refined metal and silver, gains from strategic hedging, higher zinc prices, and advantageous exchange rates.
Zinc stocks are at an all-time low, there are supply-side constraints and there are no new mines coming up in the immediate short run. So, prices are bound to go up. There is a school of thought that says shortages could lead to price rising to around $ 3700 per tonne. And there is another which believes that the world would come to terms with new realities and in all likelihood – maybe another quarter down the line – zinc prices would stabilise to $3100 per tonne levels, he added.