Hindustan Zinc Q3 Results Review - Inline; Cost Efficiency Helps Improve Margins: 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 Q3 FY24 revenue of Rs 73.1 billion (-9.8%/+7.6% YoY/QoQ) was marginally below our estimate. Ebitda of Rs 35.2 billion -5.0%/+12.2% YoY/QoQ was in line with our estimate. Ebitda margin during the quarter improved by 269 basis points/239 bps YoY/QoQ to 49.8%. At 203 kt, zinc volumes were lower by 3.3% YoY but increased 9.7% QoQ largely due to better grades. Zinc/lead prices averaged at $2,498/tonne (-16.8%/+2.9% YoY/QoQ) and $2,123/tonne (-1.5%/-2.2% YoY/QoQ), respectively, during the quarter. Silver prices averaged $23.2/Oz and were up 7.8% YoY but fell 1.4% QoQ. Before royalty, zinc’s cost of production was $1,095/tonne (improvement of 15.3%/3.7% YoY/QoQ), within the annual guidance of $1,125-1,175/tonne, on account of higher volume, softened coal prices and linkage availability, and better grades. For nine month-FY24, Zinc CoP ex royalty was $1,142/tonne. By 9M FY24, Hindustan Zinc has achieved 75% of its annual mined metal guidance (zinc + Lead metal) of 1.05-1.075 mt for FY24, and ~76% of its silver production guidance. We have factored in mined metal production at 1.06 mt (+2.7% YoY) and silver production at 744 tonne (+4.1% YoY) for FY24. We keep our estimates unchanged and value Hindustan Zinc at 7.5 times FY25E Ebitda and revise the target price marginally lower to Rs 284/share (Rs 287/share earlier) accounting for a lower cash level as of December-23. Maintain 'Hold'..Click on the attachment to read the full report:.Hindustan Zinc Q3 Results Review - Performance Inline; Cost Of Production Declines Further: Motilal Oswal.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 Q3 Results Review - Inline; Cost Efficiency Helps Improve Margins: Systematix

Hindustan Zinc’s Q3 FY24 revenue of Rs 73.1 billion was marginally below our estimate.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP