Hind Zinc Jul-Sep net profit seen up on strong net sales

Company is expected to report 12% year on year growth in top-line due to higher volumes, while bottom-line is expected to grow by 11.5% on year in line with increase in top-line

Hindustan Zinc’s net profit for the quarter ended September is seen up from the corresponding period last year mainly on the back of a strong topline, brokerages said.

 

The company is expected to report 12% year-on-year growth in top-line due to higher volumes, while its bottom-line is expected to grow by 11.5% on year in line with increase in top-line, said Angel Broking in its report.

 

Net sales of the company is seen up both in terms of volume as well as value. Hindustan Zinc will be detailing its Jul-Sep results on Oct 23.

 

Though global prices of zinc have declined 1.3% on year-on-year basis, rupee’s depreciation against the dollar is seen offsetting the fall in metal prices, brokerages said.  

 

In terms of volume, the company reported increased production with zinc output being the highest.

 

The company's refined zinc production in the period under review rose highest ever at 195,000 tonne, up 28% from same period last year.

 

The rise in zinc output is mainly due to higher smelter utilisation rate, driven by higher operational efficiences and improved raw material availability, said the Vedanta Group company in a release.

 

Refined lead production of the company was up 29% on year at 31,000 tonne. Silver, which occurs in lead and zinc ore and is recovered in the smelting and silver-refining processes stood at 83 tonne, up 14% from year ago period.

 

Hindustan Zinc’s earnings before interest, taxes, depreciation and ammortisation margin is seen 25% up from last year, said ICICI Securities in a report.

 

"We have a positive stance on Hindustan Zinc," said Angel Broking.

 

Hindustan Zinc is the world's largest integrated producer of zinc-lead. It has a metal production capacity of over 1 mln tonne per annum with its primary smelter operations situated in Chanderiya, Debari and Dariba. 

 

The company's lead-zinc mines are located in Rajasthan's Rampura Agucha, Sindesar Khurd, Rajpura Dariba and Zawar.