Hindustan Zinc Q2 Results Review - Earnings Inline, Silver Segment Contribution Rises: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Hindustan Zinc Ltd.’s Q2 FY25 revenue of Rs 82.5 billion (+21.5%/+1.5% YoY/QoQ) was in line with our estimate. Ebitda of Rs 41.2 billion (+31.3%/+4.5% YoY/QoQ) was also in line with our estimate. Ebitda margin improved by 374 bps/142 bps YoY/QoQ to 50% during the quarter. At 198kt, zinc volumes were higher by 7% YoY but fell 6.2% sequentially. Zinc/lead prices averaged $2,779/tonne (+14.4%/-1.9% YoY/QoQ) and $2,044/tonne (-5.8%/-5.7% YoY/QoQ), respectively, during the quarter. The base metal prices normalized during the quarter versus the momentum seen in the previous quarter as the market supply chain adjusted to the absence of Russian metals at LME exchanges. Silver prices rallied along with gold, averaging at $29.4/Oz, rising by 24.7%/2.1% YoY/QoQ, on a strong demand outlook. Hindustan Zinc’s margins benefited from favorable silver prices and volumes partially offsetting the impact of lower volumes during the quarter. Zinc cost of production (excluding royalty) of $1,071/tonne fell 5.8%/3.3% YoY/QoQ due to soft coal and input commodity prices, better coal linkages, and improved grades. For the full year FY25, the management maintains its CoP guidance between $1,050-1,100/tonne..Click on the attachment to read the full report:.Hindustan Zinc Q2 Results: Profit Rises 34.6%, Meets Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hindustan Zinc Q2 Results Review - Earnings Inline, Silver Segment Contribution Rises: Systematix

The brokerage believes that the company’s growth trajectory appears to be fully priced in and the growth hereon is hinged on smelter capacity expansion, commissioning of the fertilizer plant in FY26.

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Hindustan Zinc Q2 Results Review - Earnings Inline, Silver Segment Contribution Rises: Systematix

The brokerage believes that the company’s growth trajectory appears to be fully priced in and the growth hereon is hinged on smelter capacity expansion, commissioning of the fertilizer plant in FY26.

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