A cooperative miner displays deposits from a silver, zinc and tin mine. (Photographer: Lisa Wiltse/Bloomberg)

Hindustan Zinc Posts Highest Profit Growth In Four Years

Hindustan Zinc Ltd.’s shares jumped after the company posted its highest net profit growth in four years despite a record dividend payout of Rs 14,000 crore in the January-March quarter.

Net profit rose 42.5 percent to Rs 3,056.96 crore on a year-on-year basis surpassing the Bloomberg consensus estimate of Rs 2,851.4 crore. The integrated zinc-lead producer’s profit last grew over 40 percent during the fourth quarter of FY13, when it surged 57 percent.

Total income stood at Rs 7,237.13 crore compared to Rs 4,197.6 crore in the year-ago period, the company said in its stock exchange filing.

Earnings before interest, tax, depreciation and amortisation doubled to Rs 4,215 crore compared to Rs 2,048.4 crore in the fourth quarter last year. EBITDA margins for the company stood at 58.24 percent as against 48.8 percent last year.

As of March 31, 2017, the company’s cash and cash equivalents stood at Rs 16,065 crore.

The company returned Rs 27,157 crore to shareholders in the 12 months ending March 31,2017, a record in Indian corporate history. The record performance of the company, supported by strong zinc prices, has helped Hindustan Zinc generate unparalleled value for its stakeholders during the year
Avinesh Agarwal, Chairman, Hindustan Zinc

Segmental Performance

  • Revenue from sale of zinc grew 130.56 percent year-on-year to Rs 5,160 crore.
  • Revenue from sale of lead rose 43 percent to Rs 858 crore year-on-year.
  • Revenue from sale of silver grew 28.83 percent to Rs 563 crore compared to last year.

The company’s Rampura Agucha and Sindesar Khurd shafts are on track for completion in FY19, the company said in its exchange filing.

It expects capital expenditure on the ongoing mine expansion projects, fumer and smelter de-bottlenecking to be around $350-360 million in FY18. Mined metal production in FY18 to be higher than the previous financial year.

Shares ended 4.2 percent higher after rising as much as 5.5 percent intraday.