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Hindustan Zinc's quarterly profit increases on strong silver and zinc prices

Hindustan Zinc's quarterly profit increases on strong silver and zinc prices

Hindustan Zinc, an Indian company, reported a 14% increase in its second-quarter profits on Friday as silver prices reached record levels and zinc prices rose steadily amid strong demand.

India's largest refined zinc producer reported that its net profit grew to 26.49 trillion rupees ($301 million) for the quarter ending September 30, compared with 23.27 trillion rupees in the same period last year.

Hindustan Zinc, the third largest silver producer in the world and India's largest silver consumer, is India's most integrated silver company.

Silver prices reached record highs and consumers were looking for an alternative to gold. Industrial needs also increased demand for the precious metal.

Analysts estimated that the increase in price could range between 32% to 39% year-over-year.

Analysts estimate that zinc prices could have increased by close to 2% during this period.

The local demand for zinc - which is used to protect steel from corrosion - remained high as the manufacturing industry in the country progressed.

Hindustan Zinc has a monopoly on nearly three-fourths the zinc market in India. It said that revenue from its zinc operations increased by about 2%, while revenues from its silver operations grew by 10%.

The total revenue from operations increased by 3.6%, to 85.49 billion Indian rupees. $1 = 87.9300 Indian Rupees (Reporting and editing by Janane Vekatraman).

(source: Reuters)