January 19, 2023
New Delhi, India
Hindustan Zinc Q3
Hindustan Zinc, a Vedanta group firm, recently disclosed its financial performance for Q3, revealing a net profit of Rs 2,028 crore. Despite a year-on-year (YoY) decline, the company showcased a promising sequential growth of 17%.
Financial Highlights:
Net Profit: In Q3, Hindustan Zinc reported a net profit of Rs 2,028 crore, marking a 5.9% YoY decrease. However, on a sequential basis, the net profit showed a substantial 17% increase from Rs 1,729 crore.
Revenue from Operations: The revenue from operations for the quarter was Rs 7,067 crore, reflecting a 7.4% YoY decline. Nevertheless, on a quarter-on-quarter basis, the company witnessed an 8% rise in revenue.
EBITDA Performance: Earnings before tax, depreciation, and amortization (EBITDA) for the quarter stood at Rs 3,560 crore, indicating a 14% fall compared to the same quarter last year.
Operational Insights:
Hindustan Zinc’s operational performance saw an 8% sequential increase in mined metal production, reaching 271 kt. This growth was attributed to higher ore production and improved mined metal grades year on year.
Market and Analyst Expectations:
Analysts anticipated a positive impact on revenue due to a 7% sequential rise in volumes. EBITDA was expected to increase by 9% quarter on quarter primarily due to higher volumes.
Nine-Month Overview: For the nine months ended December 2023, the company’s revenue from operations was Rs 21,383 crore, marking a 16% YoY decline. The profit during this period was Rs 5,721 crore, reflecting a 28% YoY decrease.
CEO’s Perspective and Achievements: Arun Misra, the CEO, emphasized the company’s focus on operational excellence, resulting in record nine-months mined metal and silver production. Additionally, Hindustan Zinc received recognition in the S&P Global Corporate Sustainability Assessment 2023, securing the highest ranking among 238 companies in the metals and mining sector.
Market Trends and Investor Sentiment: Over the past year, Hindustan Zinc’s shares have fallen by approximately 16%, contrasting with the Nifty 50 index, which provided investors with returns of around 19.5%. This indicates potential concerns or challenges among investors.
Conclusion:
Hindustan Zinc’s Q3 earnings, though showing a YoY decline, exhibit resilience with sequential growth. Operational efficiency, sustainability achievements, and market recognition underscore the company’s strategic positioning. Investors, however, appear cautious, as reflected in the stock’s performance over the past year.
Check Latest: Q3 Results
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
