Hindustan Zinc posted a net profit of Rs 3056.96 crore in the quarter ended March 2017, as compared to net profit of Rs 2319.90 crore in the preceding quarter and Rs 2147.22 crore in the year-ago quarter.
The better-than-expected jump in net profit of the company has failed to lift sentiment at the Hindustan Zinc counter today. The stock opened high at Rs 288.50, but retreated soon and slipped to a low of Rs 275.45 in early afternoon trades, netting a loss of about 2.4%.
Concerns that the company might note be able to repeat the stellar performance in the next couple of quarters at least, due to falling zinc prices appear to be weighing on the stock. The company is looking to produce 17% more metal in the current financial year, but lower zinc prices are expected to cut down revenues.
Nearly 5.4 lakh shares have changed hands so far at the Hindustan Zinc counter on BSE today, 2.3 times more than the average daily volume seen at the counter.
