Hindustan Zinc Profit Doubles on Higher Metal Prices (Update1)

MUMBAI, Apr. 22 -- Hindustan Zinc Ltd., India's largest producer, said fourth-quarter profit more than doubled because of higher prices.

Net income in the three months ended March 31 surged to 12.4 billion rupees ($279 million), or 29.33 rupees a share, from 5.5 billion rupees, or 13.05 rupees, a year earlier, the company said today in a statement to the Bombay Stock Exchange. Revenue doubled to 25 billion rupees.

Rising demand for steel used to make cars and air conditioners is boosting sales of zinc, used to galvanize the alloy. Prices of zinc for three-month delivery averaged $2,307 a metric ton in the quarter ended March 31, compared with $1,208 a year earlier, according to London Metal Exchange data.

Hindustan Zinc shares, which increased 2.4 percent this year, rose 1.3 percent to 1,239 rupees in Mumbai. The benchmark Sensitive Index of the Bombay Stock Exchange was little changed at 17472.56.