Hindustan Zinc is currently the top loser on the BSE with the market being disappointed with the Q3FY23 earnings. The stock price slipped 9.5% to an intraday low at Rs.342 and is now trading at Rs.352 levels.
The market is not happy with its 20% (YoY) drop in net profit at Rs.2156 crore which can be blamed directly on the 3% drop in net revenue at Rs.7628 crore, followed by a 15% fall in EBITDA at Rs.3707 crore. This fall is on account of lower LME coinciding with lower refined metal and silver volumes partially offset by favourable exchange rates and gains from strategic hedging.
Sequentially revenue witnessed a decline of 5.6%, owing to lower zinc LME, lower lead & silver volumes and lower gains from strategic hedging partly offset by favourable exchange rates, improved zinc volumes and improved lead and silver prices.
Zinc cost of production before royalty (COP) for the quarter was US$ 1,293 (INR 1,06,203) per MT, up 12.7% (23.5% higher in INR terms) y-o-y and 2.7% (5.9% higher in INR terms) sequentially. The COP was affected largely on account of elevated coal prices, input commodity inflation and lower domestic coal (linkage) availability partially offset by higher volumes & improved operational efficiencies.
As on Dec 31, 2022, the company’s consolidated gross investments and cash & cash equivalents were Rs.16,482 Cr as compared to Rs.17,807 Cr at the end of Sept’22.
The company’s consolidated net investments as at end of Dec 31, 2022, were Rs.11,378 Cr as compared to Rs.I5,696 Cr at end of Sept’22.
Also, Vedanta approved the sale of assets of its subsidiary Zinc International to the Hindustan Zinc Ltd. for Rs 2,421crore.
The board approved a dividend of Rs 13 per share.