Hindustan Zinc’s Q2 Profit Beats Estimates Led By Uptick In Zinc, Silver Prices
Hindustan Zinc profit slumps 15% year-on-year but rises 83 percent on quarterly basis.
Hindustan Zinc Ltd. posted a 15.4 percent slump in profit in the second quarter, over the same period last year, but managed to beat street estimates. The Vedanta Group company’s performance was supported by a 51 percent quarterly increase in production of mined metals, and an uptrend in silver and zinc prices.
The price rally in zinc continued this quarter with prices climbing 18 percent from the previous quarter, consistent with its strong fundamentals. Silver prices too have rallied coupled with increasing volumes.Agnivesh Agarwal, Chairman, Hindustan Zinc said in the exchange filing
Net profit fell to Rs 1,901.9 crore from Rs 2,248.42 crore in the same quarter last year, according to the company’s stock exchange filing. A Bloomberg estimate had pegged the bottomline at Rs 1,540.7 crore. The mining major’s profit jumped more than 83 percent on a quarterly basis.
Revenue declined 9.8 percent to Rs 3,819.9 crore but beat the Bloomberg consensus estimate of Rs 3,449.2 crore. Revenue jumped 37.7 percent on a quarter-on-quarter basis. Other income stood at Rs 770.2 crore as of September 30, 2016.
Earnings before interest, tax, depreciation and amortisation fell 5.3 percent on a year-on-year basis to Rs 2,076.7 crore. The EBITDA margin grew close to 3 percent over the same period.
“Favourable market scenario and company's smooth transition to underground mining has boosted investor confidence, heralding the company's entry in the top 25 club in terms of market capitalisation in India,”, Agarwal said in a separate press release.
Vedanta Group owns 64.92 percent stake in Hindustan Zinc while the government has 29.54 percent of the total shares, according to information on the company's website
