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Vedanta-unit Hindustan Zinc Ltd. is planning to foray into potash mining and is eyeing a block in Rajasthan which has a fair chance of having lithium reserves also, a top official of the company told news agency PTI. The report said that Hindustan Zinc is also planing to expand beyond base metals — zinc and lead — and precious metal silver as well as all critical minerals, which are of strategic interest to the firm.
The company was declared as the preferred bidder for Dugocha gold block in Rajasthan, resulting into expansion of its portfolio of precious metals. Speaking to PTI, Hindustan Zinc CEO Arun Misra said, ”So all the critical mineral blocks, as I said, we have got gold..
.block, we have got tungsten block. So Hindustan Zinc will expand beyond zinc, lead and silver.
”We will expand into all critical minerals, whichever is of strategic interest to us, including not only minerals, including potash...
Potash is there in Rajasthan...
(There are) also chances of lithium association there (in the potash block). So we will look at that,” Misra added. According to Misra, Hindustan Zinc is eyeing to participate in the auction of all mineral blocks taking place in India.
He added that its subsidiary Hindmetal Exploration Services Pvt Ltd –focused on strategic mineral exploration particularly in critical minerals — is fully on the job. ”I am sure they (the company) will turn out to be the biggest private explorer as far as India is concerned,” Misra said. Hindustan Zinc has recently extended the tenure of CEO Arun Misra for a period of one year The company reported March quarter results on April 25, which were higher on a year-on-year basis, as well as when compared to estimates from a CNBC-TV18 poll.
Revenue stood at ₹9,087 crore, higher than the CNBC-TV18 poll of ₹8,853 crore. On a year-on-year basis, the numbers were up 20%. Net profit for the company grew by 47% from the same quarter last year to ₹3,003 crore, which is well above the CNBC-TV18 poll of ₹2,615 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) at the end of the March quarter stood at ₹4,820 crore for Hindustan Zinc, a growth of 32% from the year-ago quarter. A CNBC-TV18 poll had projected the figure to be ₹4,503 crore. EBITDA margin for the quarter expanded by nearly 500 basis points to 53% from 48.
3% last year. A CNBC-TV18 poll had projected a figure of 50.9%.
The company has earmarked $225 million to $250 million as growth capex for the current financial year. Shares of Hindustan Zinc Ltd. settled 3.
34% lower on Friday at ₹444. The stock is flat so far this year. With PTI inputs.
