Hindustan Zinc Q1 Review - Higher Commodity Continues To Propel Earnings: ICICI Securities
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ICICI Securities Report
Hindustan Zinc Ltd. continues to prepare for its eventual leap towards 1.2 million tonnes per annum and then 1.35mtpa of mined metal production.
While, FY22 was expected to witness ramp-up in production to 1.2mtpa, second wave of Covid-19 outbreak in India seems to have postponed the same.
Hindustan Zinc's management continues to guide for a conservative 11.5% YoY mined metal production growth (mid-point).
Similarly, silver production guidance has been maintained at 720 tonne.
Q1 FY22 witnessed significant cost escalation (13% QoQ) because of higher coal and diesel prices.
This along with lower than expected metal production led to 5% Ebitda miss.
Project development (capital) is being continued at an impressive pace.
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