Hindustan Zinc likely to report over 30% profit growth on higher volumes, better pricing

NEW DELHI: Mining major Hindustan Zinc is geared up to report its fourth quarter results on Thursday.

Analysts expect the company to report in excess of 30 per cent growth in Q4 profit on a 70-100 per cent jump in revenue, thanks to a spurt in volumes and metal prices.

Updates on mine expansion plans will be the key monitorable for the stock, analysts said.

“We expect revenue to increase 103 per cent YoY led by higher realisations as well as higher MIC volumes in line with the yearly mine plan. Zinc volume is expected to be higher at 220kt, up 39 per cent YoY, while lead volume is expected at 47kt, up 14.6 per cent YoY. MIC volume is expected at 312kt, up 66 per cent YoY. Zinc LME prices rose 65 per cent YoY while lead LME was up 30 per cent YoY,” Centrum Broking said in a note.

The brokerage expects the company’s Ebitda to soar 176 per cent on a year-on-year basis to Rs 3,610 crore, led by higher realisations, bigger volumes and lower cost. Ebitda margin is seen at 57.3 per cent.

HDFC Securities in a note said the company is expected to report 31.8 per cent YoY rise in adjusted profit at Rs 2,440 crore on a 70 per cent YoY rise in sales at Rs 5,220 crore.

Strong pricing and improvement in volumes will drive Ebitda by 126.3 per cent YoY, it said.

Centrum Broking expects Hindustan Zinc to report 37.3 per cent growth in profit after tax (PAT).