Hindustan Zinc Ltd has reported a strong set of earnings for the secord quarter of FY27, with all metrics coming in above estimates. The net profit rose 17.2% to Rs 6,412 crore as compared to Rs 5,469 crore from the previous quarter, above the estimate of Rs 5,593 crore.
Revenue also rose 9.8% to Rs 15,093 crore versus Rs 13,747 crore the previous quarter, also above the estimate od Rs 14,035 crore. On the EBITDA front, the metric rose 14.9% to Rs 9,248 crore as compared to Rs 8,050 in Q1FY27, also well above its estimate of Rs 8,466 crore. Margin came in at 61.3%, higher than the estimate of 60.3%. The company had reported a margin of 58.6% the previous quarter.
Hindustan Zinc Q2 Results - Cons, QoQ
- Net profit up 17.2% at Rs 6,412 crore vs Rs 5,469 crore QoQ
- Revenue up 9.8% at Rs 15,093 crore vs Rs 13,747 crore QoQ
- EBITDA up 14.9% at Rs 9,248 crore vs Rs 8,050 crore QoQ
- EBITDA margin at 61.3% vs 58.6% QoQ
Results Vs Estimates
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- Net profit at Rs 6,412 crore vs estimate of Rs 5,593 crore
- Revenue at Rs 15,093 crore vs estimate of Rs 14,035 crore
- EBITDA at Rs 9,248 crore vs estimate of Rs 8,466 crore
- EBITDA margin at 61.3% vs estimate of 60.3%
In the September quarter, silver revenue rose to Rs 4,111 crore from Rs 1,707 crore a year earlier. Silver-segment results increased to around Rs 3,609 crore from Rs 1,464 crore. Silver therefore contributed roughly 43% of the combined Rs 8,329 crore result from the zinc, lead and silver businesses.
Hindustan Zinc attributed the increase in revenue to higher metal prices, increased production, improved realisations from by-products and a stronger US dollar. The company's year-on-year EBITDA bridge shows that higher prices contributed around Rs 2,899 crore, while foreign exchange movements added Rs 987 crore. Higher volumes contributed another Rs 627 crore, while lower costs added Rs 322 crore.
Hindustan Zinc's cost of production for zinc, excluding royalty, fell 29% year-on-year to $703 per tonne in Q2FY27. The company attributed the improvement to better mined grades, higher metal production and stronger by-product realisations.
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