InvestorQ : Can you give me a quick heads up on the quarterly results of Hindustan Zinc?
Archita Jajjoo made post

Can you give me a quick heads up on the quarterly results of Hindustan Zinc?

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Niti Shenoi answered.
1 month ago
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For the Sep-21 quarter, Hindustan Zinc Q2 PAT was up just 3.97% at Rs.2,017 crore due to higher cost of production of zinc and lead. Even total revenues were up just 8.16% at Rs.6,122 crore in the second quarter. Zinc reported 18% growth in sales while lead sales were up 3%. Top line pressure was visible in the silver business wherein revenues fell -21%.

The price of zinc and lead on the LME were up 25% to 28%, which ensured higher sales despite volumes pressure. However volume growth was tepid and cost pressures did little for the bottom line. The cost of Zinc production at $1,124 per metric tonne was nearly 24% higher compared to the corresponding quarter in the previous year.

The big hit was on higher input costs, which is why the EBITDA was up 12.9% on yoy basis but down 6.4% sequentially on cost pressures. Net margins at 32.95% was lower than 34.28% in the Sep-20 quarter but definitely higher than the NPM of 30.36% in the sequential Jun-21 quarter.

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