11 hours ago
Vedanta-unit Hindustan Zinc Ltd. reported March quarter results on Friday, April 25, which were higher on a year-on-year basis, as well as when compared to estimates from a CNBC-TV18 poll.
The company reported revenue of ₹9,087 crore, which was higher than the CNBC-TV18 poll of ₹8,853 crore. On a year-on-year basis, the numbers were up 20%.
Net profit for the company grew by 47% from the same quarter last year to ₹3,003 crore, which is well above the CNBC-TV18 poll of ₹2,615 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) at the end of the March quarter stood at ₹4,820 crore for Hindustan Zinc, a growth of 32% from the year-ago quarter. A CNBC-TV18 poll had projected the figure to be ₹4,503 crore.
EBITDA margin for the quarter expanded by nearly 500 basis points to 53% from 48.3% last year. A CNBC-TV18 poll had projected a figure of 50.9%.
The company has also extended the tenure of CEO Arun Misra for a period of one year and has earmarked $225 million to $250 million as growth capex for the current financial year.
In its post-earnings investor presentation, Hindustan Zinc said that the Zinc and Lead prices are forecast to stay resilient despite some expected surplus.
The management also said that Silver may see sustained deficit in the near-future due to growing industrial use, supported by renewable energy and other emerging uses in automotive, electronics, and 5G applications.
Hindustan Zinc is India's only primary producer of Silver.
The company's 160 KTPA Roaster in Debari is scheduled for commissioning in the first quarter of the current financial year, while the 510 KTPA Fertiliser plant under HZFPL will be commissioned by the fourth quarter of the current financial year.
Hindustan Zinc has reiterated that 30% of its net profit for the year of 5% of the operating net worth, whichever is higher, will be earmarked as dividend.
Shares of Hindustan Zinc have recovered from the lows of the day, but are trading 1.4% lower at ₹452.9. The stock is down 44% from its all-time high of ₹807.
