InvestorQ : What is your view on Hindustan Zinc after the latest results?
indhumathi Sayani made post

What is your view on Hindustan Zinc after the latest results?

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3 months ago
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Thanks to strong ore prices and demand pick-up, Hindustan Zinc reported 35.8% yoy growth in PAT at Rs.1620 crore even as revenues were up 29.13% at Rs.6033 crore in the Dec-20 quarter. HZL reported growth across zinc, lead, silver metal and others; supported by better volumes and pricing edge.

Operating profits were up 55.44% at Rs.2630 crore as HZL achieved higher sales revenues keeping costs in check. Hence OPM expanded from 36.22% in Dec-19 quarter to 43.59% in Dec-20 quarter. PAT margins also expanded from 34.67% to 36.47%, in the same period. For HZL, it was a confluence of good volume pick-up supported by better prices on the LME.

HZL reported record ore production in Dec-20 quarter. To illustrate, HZL produced 244KT of mined metal, 235KT of refined metal 183MT of saleable silver. The volume growth was supported by a spike in prices of zinc and silver. On a comparative basis yoy, zinc prices were up 10%, silver prices up 41% with the exception being lead prices lower by 7%.

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