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Hindustan Zinc Q1 Results FY22-2023

22 July 2022

World’s second largest zinc miner, Hindustan Zinc announced its quarterly results for the first quarter of FY23 on 21st July 2022. The company reported the highest-ever first quarter mined metal, refined metal, and silver production. With this, the profit after tax (PAT) showed an impressive 55.93% YoY (year on year) increase to Rs 3,092 crore in Q1 FY23 from Rs 1,983 crore in Q1 FY22. 

This was tail-ended by the increased revenue from its operations, which grew 44.81% YoY to Rs. 9,236 crore in Q1 FY23 from Rs. 6,378 crore in Q1 FY22. Zinc volumes and zinc LME prices were higher in this quarter. The favourable exchange rates also proved helpful but were partly offset by lower silver prices. Additionally, the sales volumes of lead and silver also increased by 8.6% and 9.5%, respectively. With this, the net profit margin increased to 33% in Q1 FY23 from 32% in Q1 FY22. 

More on Hindustan Zinc Q1 Results FY23

The metal sector behemoth declared its EBITDA for the quarter ended 30 June 2022 at Rs. 5,278 crore, up 48.3% YoY. This was primarily due to the increased volumes and higher zinc LME. 

The company declared its operating margin at 48% in this quarter, which increased from 44% reported in the same quarter in the previous year. 

Looking at the operational performance, the mined metal production stood at 252 KT, showing a 13.8% YoY increase. This was on account of higher ore production at Kayad, Sindesar Khurd, Rampura Agucha mines. Moreover, the integrated metal production remained mostly flat, increasing 9.9% YoY to 260 KT. 

As of 2:25 pm, the stock trades at Rs 285.35, having reacted positively in anticipation and as a reaction to the results release. 

Hits of Hindustan Zinc Quarterly Result

  • Profit after tax (PAT) increased 55.93% YoY to Rs. 3,092 crore in Q1 FY23 from Rs. 1,983 crore in Q1 FY22. 
  • Revenue from operations increased 44.81% YoY to Rs. 9,236 crore in Q1 FY23 from Rs. 6,378 crore in Q1 FY22.
  • Sales volumes of lead and silver increased by 8.6% & 9.5% respectively.
  • EBITDA in Q1 FY23 increased 48.3% YoY to Rs. 5,278 crore.
  • Mined metal production stood at 252 KT, showing a 13.8% YoY increase.
  • The earnings per share (EPS) stood at Rs. 7.32, a 56% increase from Q1 FY22. 

Segment-wise revenue 

  • Zinc, lead, others: A YoY increase of 54.61% to Rs. 8,066 crore from Rs. 5,217 crore. 
  • Silver metal: A YoY increase of 0.27% to Rs. 1,109 crore from Rs. 1,106 crore. 

What the management says about Hindustan Zinc Result

Commenting on the performance, Mr Arun Misra, CEO, said: “Hindustan Zinc delivered best first-quarter production for mined metal, refined metal & silver. With the exit run-rate for both mined & refined metal crossing over one million tonnes, we are fully geared to deliver another stellar performance this year. Board approval received for setting-up of the Fertilizer plant & an additional Roaster is also a welcome move. With such synergetic growth projects along the value chain, we are confident to deliver long-lasting sustainable value for all stakeholders.”

Other things to know about Hindustan Zinc Q1 Results

  • As on June 30, 2022, the company’s gross investments and cash and cash equivalents stood at Rs. 24,254 crore, as compared to Rs. 20,789 crore at end of March 2022. 
  • Hindustan Zinc introduced India’s 1st Battery Electric Vehicle (BEV) at the Zawar mine.
  • The board of directors of the company approved the formation of a wholly owned subsidiary company for setting up of the 5.0 LTPA fertiliser plant. 
  • The board also approved the setting up of a new roaster plant with a capacity of 160 KTPA. 

To read the RA disclaimer, please click here
Research Analyst: Bavadharini KS

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