Hindustan Zinc net profit rises 56% to ₹3,092 cr in Q1 on higher LME prices; shares rally
Hindustan Zinc Q1 results: EBITDA for the April-June quarter came at ₹5,278 crore, up 48.3% YOY, driven by higher zinc LME and volumes
PremiumVedanta group firm Hindustan Zinc Ltd (HZL) on Thursday reported a 55.9% year-on-year rise in net profit to ₹3,092 crore for the quarter ended on 30 June, 2022. The firm had posted a net profit of ₹1,983 crore in the corresponding quarter of the previous fiscal.
Net profit for the quarter was up 55.9% y-o-y and 5.6% sequentially, driven by higher LME prices while being partially offset by the rising input commodity prices, Hindustan Zinc said in a filing to BSE.
The revenue from operations during the quarter under review came at ₹9,387 crore, an increase of 43.7% y-o-y, led by higher zinc volumes and zinc LME prices as well as favourable exchange rates while partly offset by lower silver prices.
Zinc LME prices and zinc metal sales increased 34.2% and 10.2%, respectively, as compared to Q1FY22.
Sequentially revenue increased 6.7%, primarily due to higher zinc LME, gain from strategic hedging and higher lead and silver volumes which was partially offset by lower zinc volumes and lower lead and silver prices.
Sequentially lead and silver sales volumes increased by 8.6% & 9.5%, respectively.
EBITDA for the quarter came at ₹5,278 crore, up 48.3% y-o-y, primarily due to higher zinc LME and volumes.
Sequentially EBITDA was up 5.4% on account of higher zinc LME prices and lead and silver volumes partly offset by higher cost.
Liquidity and investment
As on 30 June, 2022, the company's gross investments and cash and cash equivalents were ₹24,254 crore as compared to ₹20,789 crore at end of March'22.
The company's net investments at the end of June quarter was at ₹21,439 crore as compared to ₹17,966 crore at end of March'22.
Commenting on the performance, Arun Misra, CEO, said, “Hindustan Zinc delivered best first-quarter production for mined metal, refined metal & silver. With the exit run-rate for both mined & refined metal crossing over one million tonnes, we are fully geared to deliver another stellar performance this year."
"Board approval received for setting-up of the Fertilizer plant & an additional Roaster is also a welcome move. With such synergetic growth projects along the value chain, we are confident to deliver long-lasting sustainable value for all stakeholders," Misra said.
Sandeep Modi, Deputy and Interim CFO, added: “Hindustan Zinc touched a new milestone with highest ever quarterly Revenue, EBITDA and Net Profit. Our proactive approach to cash in the opportunity from higher LME through strategic hedging helped us to protect overall margin in an input commodity inflationary environment."
He further said, "As a management team, we continue to monitor the coal cost situation closely & all efforts are in place to ensure security over the short term and reduce dependence on Thermal in the medium to long term through right investments in renewable projects."
Shares of Hindustan Zinc were trading 2.17% higher at ₹284.90 apiece on the NSE today.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
