Hindustan Zinc expects “positive feedback” from govt on co rejig by next quarter

Hindustan Zinc expects, by next quarter, a “positive feedback” from the government on its plans to rejig its business into three separate entities, its CEO said in an interview Friday.

“We expect to hear from the government by the next board meeting,” Arun Misra told ET.

The company’s board had on September 29, proposed a corporate restructuring to create three separate legal entities for zinc and lead, silver, and recycling business. The move, meant to unlock potential shareholder value, is in line with its parent Vedanta’s plans to create separately listed entities for aluminium, oil and gas, iron ore and steel.

ET reported on November 17 about a mines ministry letter to Hindustan Zinc stressing that any business restructuring would need the government’s approval.

The government has a 29.54% stake in HZL, while Vedanta owns the rest.

Earlier Friday, the company announced the fifth straight decline in quarterly net profit due to a weak operating performance. Net profit for the Oct-Dec quarter fell 6% on year to Rs 2,028 crore. Revenue fell 7% to Rs 7,310 crore, “on account of significantly lower zinc prices, lower zinc volumes and strategic hedging impact in base period partly offset by increased silver & lead volumes and prices and favourable exchange rates,” the company said in a statement.