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Hindustan Zinc's Net Falls 53%

Despite fall in net sales & profit of Hindustan Zinc, for the fourth quarter, it has declared dividend of 40 per cent on face value

Hindustan Zinc, part of the Vedanta Resources group and India's leading zinc producer, has not managed to deal with the economic slowdown and the resultant falling demand, logging a dismal quarterly and fiscal numbers, although it did stay in the profit zone.

Its results for the quarter ended March 31, 2009 indicated the company posted a net profit of Rs 551.47 crore for the quarter ended March 31, 2009 as compared to Rs 1182.2 crore for the quarter ended March 31, 2008—a fall of Rs 53.35 per cent.

Net profit nosedived by 53 per cent as net sales for the quarter fell by as much as 44 per cent from Rs 1263 crore on March 31, 2009 from Rs 2266 crore reported for March 31, 2008 period.

Total income decreased from Rs 2446.970 crore for the quarter ended March 31, 2008 to Rs 1483.150 crore for the quarter ended March 31, 2009. This is an erosion of 39 per cent in the total income.

Despite all the gloomy news, the board still declared a dividend of 40 per cent, or Rs 4, on shares of face value of Rs 10 for FY 2009.

The consolidated results for the year ended March 31, 2009, the company posted a decline in net profit by 38 per cent. It reported its net profit at Rs 2727.61 crore for the year ended March 31, 2009 as compared to Rs 4396.09 crore for the year ended March 31, 2008.

Net sales too fell, as per the annual result, knocked down by 28 per cent to a low of Rs 5680 crore on March 31, 2009, which was Rs 7878 crore for March 31, 2008.

Total income too declined, by as much as 24 per cent, from Rs 8729.41 crore for the year ended March 31, 2008 to Rs 6611.5 crore for the year ended March 31, 2009.