Hindustan Zinc Q2 Results Review - Performance Inline; Guidance Retained: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Hindustan Zinc Ltd.’s Q2 FY24 revenue came in at Rs 68 billion (down 19% YoY), which was in line with our estimate of Rs 67 billion. Ebitda stood at Rs 31 billion (down 29% YoY), in line with our estimate of Rs 32 billion. The decline in Ebitda was attributed to lower London Metal Exchange prices, lower volumes, and strategic hedging impact, which were partially offset by lower cost of production and favorable exchange rates. The CoP stood at $1,137/tonne (the lowest CoP in the last five quarters).The reduction in CoP is driven by better coal linkage availability, softening of input costs, and better ore grades. Adjusted profit after tax stood at Rs 17 billion (down 35% YoY), in line with our estimate of Rs 18 billion. Refined zinc sales for Q2 FY24 stood at 185 kilo tonne (down 2% YoY), refined lead sales came in at 57 kt (flat YoY), and silver sales stood at 181 tonne (down 7% YoY). H1 FY24 revenue stood at Rs 141 billion (down 21% YoY) and Ebitda stood at Rs 65 billion (down 32% YoY). Hindustan Zinc posted the highest ever H1 mined metal production of 509 kt, aided by higher ore production at Rampura Agucha mines and improved metal grades.Refined lead production was hit by low plant availability, which indirectly impacted silver production in H1 FY24. Gross debt currently stands at Rs 113 billion and cash and cash equivalents on books are around Rs 114 billion..Click on the attachment to read the full report:.Hindustan Zinc Q2 Results: Profit Declines 35%, Misses Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hindustan Zinc Q2 Results Review - Performance Inline; Guidance Retained: Motilal Oswal

Guidance on volume and cost of production maintained.

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