Hindustan Zinc - Q2FY21 First Cut - ICICI Securities

(CMP: Rs. 223, MCap: Rs. 94204 crore)

Hindustan Zinc reported a mixed performance for Q2FY21 wherein the topline came in line with our estimate, while EBITDA and PAT came in lower than our estimate.

Q2FY21 Earnings Summary

- For the quarter, zinc sales volumes came in at ~181000 tonnes (higher by 8% YoY and 11% QoQ, marginally lower than our estimate: 185419 tonnes), lead sales volume came in at ~57000 tonnes (higher by 30% YoY and 27% QoQ, lower than our estimate: 60125 tonnes) while silver sales volume came in at ~203000 kg (higher by 50% YoY and 39% QoQ, higher than our estimate: 195000 kg)

- Topline came in at Rs. 5660 crore (up 25% YoY, 42% QoQ), in line with our estimate of Rs. 5668 crore. EBITDA came in at Rs. 2952 crore (up 39% YoY, 87% QoQ), lower than our estimate of Rs. 3031 crore

- EBITDA margin came in at 52.2%, marginally lower than our estimate of 53.5%. Reported CoP (before royalty) was at US$919 (Rs. 68228) per tonne, lower by 12% YoY and 10% QoQ

- Other income came in at Rs. 390 crore (down 34% YoY, 43% QoQ) while depreciation cost was at Rs. 652 crore (up 10% YoY, 20% QoQ). Effective tax rate came in at 26%, higher than our estimate of 23%. Ensuing PAT came in at Rs. 1940 crore (up 43% QoQ but down 7% YoY)

- HZL has announced an interim dividend of Rs. 21.3 per equity share with a record date of October 28, 2020

We would be coming out with the detailed report soon.

Shares of HINDUSTAN ZINC LTD. was last trading in BSE at Rs.222.95 as compared to the previous close of Rs. 220.8. The total number of shares traded during the day was 107460 in over 3526 trades.

The stock hit an intraday high of Rs. 224.7 and intraday low of 217.5. The net turnover during the day was Rs. 23816008.

Source : Equity Bulls

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