Hindustan Zinc - Q3FY21 First Cut - ICICI Direct

(CMP - Rs. 295, Market Cap- Rs. 124710 crore)

Hindustan Zinc (HZL) reported steady set of performance for Q3FY21, wherein topline and EBITDA came in marginally higher than our estimate, while PAT came broadly in line with our estimates.

Q3FY21 Earnings Summary

For the quarter, zinc sales volumes came in at ~182000 tonnes (up 6% YoY, 1% QoQ, marginally higher than our estimate: 180048 tonnes), lead sales volume came in at ~53000 tonnes (up 26% YoY, however down by 7% QoQ, in line with our estimate: 53188 tonnes) while silver sales volume came in at ~183000 kg (up 19% YoY, however down 10% QoQ, higher than our estimate: 175000 kg).

Topline came in at Rs. 6033 crore (up 29% YoY, 7% QoQ), marginally higher our estimate of Rs. 5792 crore.

EBITDA came in at Rs. 3269 crore (up 43% YoY, 11% QoQ), marginally higher than our estimate of Rs. 3128 crore. EBITDA margin came in at 54.2%, broadly in line with our estimate of 54.0% (EBITDA margin of 52.2% in Q2FY21 and 49.0% in Q3FY20).

HZL's Zinc cost of production (CoP) before royalty during quarter stood at US $946/tonne per tonne, lower by 12%YoY & higher by 3%QoQ.

Other income for the quarter under review stood at Rs. 450 crore (up 1% YoY, 15% QoQ), as against our estimate of Rs. 425 crore. The ensuing PAT for Q3FY21 stood at Rs. 2200 crore (up 36% QoQ but down 13% YoY), in line with our estimate of Rs. 2173 crore.

We would be coming out with a detailed report post the conference call.

Shares of HINDUSTAN ZINC LTD. was last trading in BSE at Rs.296.45 as compared to the previous close of Rs. 299.3. The total number of shares traded during the day was 606341 in over 16570 trades.

The stock hit an intraday high of Rs. 314.8 and intraday low of 291.2. The net turnover during the day was Rs. 184050328.

Source : Equity Bulls

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