Hindustan Zinc shares jump 4% as Vedanta group firm reports Q3 results

Shares of Hindustan Zinc Ltd (Hind Zinc), a Vedanta group firm, jumped 4 per cent in Friday's trade after the Anil Agarwal-led company reported a 17 per cent sequential rise in consolidated profit at Rs 2,028 crore over September quarter's 1,729 crore, thanks to higher Ebitda partly offset by higher tax expenses. On yearly basis, profit for the Vedanta group firm fell 6 per cent over Rs 2,156 crore in the same quarter last year.

Following the announcement, the stock rose 3.8 per cent to hit a high of Rs 323.65 on BSE.

Hindustan Zinc said its sales for the quarter rose 8 per cent sequentially to Rs 7,310 crore on account of better zinc & silver volumes, higher zinc prices and favourable exchange rates partly offset by lower lead prices and volumes. On YoY basis, sales were down 7 per cent on account of significantly lower zinc prices, lower zinc volumes and strategic hedging impact in base period partly offset by increased silver & lead volumes and prices and favourable exchange rates.

Hind Zinc said its Ebitda for the quarter stood at Rs 3,559 crore, up 14 per cent QoQ and down 4 per cent YoY in line with the revenue from operations and cost improvement mainly on account of lower revenue being partially offset by cost improvement.

CEO Arun Misra said: “With our consistent focus on operational excellence, Hindustan Zinc delivered record nine-months mined metal and silver production to leverage the elevated silver price opportunities. The company’s sustainable operational progress is reflected in its industry leading compounded annual production growth rate supplemented by safe practices."

CFO Sandeep Modi said: “This marks Hindustan Zinc’s fourth consecutive quarter of consistent cost improvement and the lowest cost in last 10 quarters. We continue to remain focused on cost optimisation, operational efficiencies, working capital management, digital improvements and shareholder value maximisation. During the quarter, Hindustan Zinc has delivered steady margin of c.49 per cent, bolstered by operational milestones and cost reduction. The Company is now in the first decile of the global zinc mining cost curve preserving its cost leadership globally and targets to achieve its designed cost in the near future."

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