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Informist, Friday, Oct. 18, 2024

 

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--Hind Zinc Jul-Sept net profit INR 22.98 bln 
--Analysts saw Hind Zinc Jul-Sept net profit INR 22.72 bln 
--Hind Zinc Jul-Sept net profit INR 22.98 bln vs INR 17.37 bln 
--Hind Zinc Jul-Sept revenue INR 82.42 bln vs INR 67.92 bln 
--Hind Zinc Apr-Sept net profit INR 46.56 bln vs INR 37.07 bln 
--Hind Zinc Apr-Sept revenue INR 163.72 bln vs INR 140.74 bln 
--Hind Zinc to buy at least 26% in Serentica Renewable for INR 3.27 bln 
--Hind Zinc: Jul-Sept silver revenue INR 15.50 bln vs INR 12.97 yr ago 
--Hind Zinc: Jul-Sept zinc revenue INR 50.78 bln up 26% YoY 
--Hind Zinc: Jul-Sept lead revenue INR 11.94 bln up 7% YoY 
--Hind Zinc: Jul-Sept consolidated EBITDA INR 41.64 bln, up 33% YoY 
--Hind Zinc: Jul-Sept zinc pre-royalty output cost $1,071/tonne, down 6% YoY 

 

By Steffy Maria Paul

 

MUMBAI – Hindustan Zinc Ltd. Friday reported better-than-expected earnings for the September quarter. The company's net profit for Jul-Sept was INR 22.98 billion, up 32.3% on year and slightly above the INR 22.72 billion expected by analysts. The company's total revenue from operations for the quarter was INR 82.42 billion, up 21.35% on year, and significantly above the INR 79.43 billion expected by the Street. The company's on-year growth in net profit and revenue for the reporting quarter were both the highest in the last eight quarters. 

 

Sequentially, however, the company's net profit was down 2.5%, while revenue was up 4.4%. For Apr-Sept, the company reported a net profit of INR 46.56 billion, up 25.6% on year. The company's revenue for Apr-Sept was INR 163.72 billion, up 16.32%. 

In Jul-Sept, total expenditure for the company was INR 53.32 billion, up 13% from INR 47.10 billion a year ago. Finance costs rose to INR 3.19 billion, up 37.5% from INR 2.32 billion a year ago. The mining royalty for the company for the quarter was up 14.86% on year at INR 9.4 billion. The company's power and fuel expenses rose to INR 7.01 billion, up 5.9% from INR 6.62 billion a year ago. The company's tax outgo for the September quarter was INR 7.97 billion as against INR 5.76 billion a year ago.

The company's segment comprising zinc, lead, and others, reported a revenue of INR 64.03 billion for the quarter, up 22% on year. This segment reported a profit before interest and tax of INR 19.40 billion, up 65.4% on year. The company's silver metal segment reported a revenue of INR 15.50 billion for the quarter, up 19.5% on year, on the back of a 25% rise in silver prices. The silver segment reported a profit before interest and tax of INR 13.57 billion, up 20.8% on year. Revenue from Hindustan Zinc's wind energy segment was INR 510 million for the quarter, down 19% on year. The wind energy segment reported a profit before interest and tax of INR 320 million, down 27% on year.

 

For the quarter, the company's zinc segment reported a revenue of INR 50.78 billion, up 26% on year, on the back of a 14% on-year rise in zinc prices. The company's lead segment reported a revenue of INR 11.94 billion, up 7% on year, aided by 12% volume growth but hit by 6?ll in price. The company reported a consolidated earnings before interest, tax, depreciation, and amortisation of INR 41.64 billion for the quarter, up 33% on year, on the back of favourable pricing and higher volumes. Analysts had expected the company's EBITDA for the quarter to be INR 39.33 billion. The company reported an EBITDA margin of 50% for Jul-Sept. The company's other income rose to INR 2.68 billion from INR 2.31 billion a year ago.

 

Hindustan Zinc's mined metal production for the quarter was 256,000 tonnes, up 2% on year, on the back of higher ore production at the company's mine in Zawar, which was partly offset by lower metal grade at the Sindesar Khurd mine. The company produced 198,000 tonnes of saleable refined zinc in Jul-Sept, up 7% on year. It produced 63,000 tonnes of saleable refined lead during the quarter, up 12% on year. The company produced 184 tonnes of silver during the quarter, up 2% on year. The company's mined and refined metal production in the September quarter and Apr-Sept was the highest ever, Hindustan Zinc said in a press release. "Leveraging strong precious metal prices, we have focused on maximising our silver production through pyro operations on lead mode, resulting in a 10% sequential increment in silver volumes," Chief Executive Officer Arun Misra said.

 

The company said its cost of production for the quarter was $1,071/tonne, the lowest ever cost of production for Hindustan Zinc for the September quarter in the last four years. The company's cost of production for zinc without royalty was $1,071/tonne, down 6% on year, owing to higher volume, better linkage coal availability, softened coal and input commodity prices, and operational efficiencies on year, Hindustan Zinc said. 

 

As part of strategic hedging, the company has an open position for 99 kilo tonnes of zinc and 83 tonnes of silver for the expected production of Oct-Mar, Hindustan Zinc said. As of Sept.30, the company's total outstanding borrowings were INR 136.68 billion.  

 

Hindustan Zinc said it will buy at least 26% stake in Serentica Renewable India Pvt. Ltd. or its affiliates for INR 3.27 billion to cater to the long-term power requirements of Hindustan Zinc. As part of the power delivery agreement, Hindustan Zinc will source 530 megawatt renewable power on a round-the-clock basis under group captive arrangement for 25 years. Serentica Renewables will also create captive power projects in different parts of India as per location suitability. The project will be commissioned in a phased manner by June 2027.

 

On Friday, shares of Hindustan Zinc closed at INR 506.5 on the National Stock Exchange, down 0.3%.  End

 

US$1 = INR 84.07

 

Edited by Tanima Banerjee

 

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