Hindustan Zinc Ltd's Q2FY17 standalone net profit drops 15.39% yoy to Rs.1,902 crore : Beats Estimates

India Infoline Research Team | October 19, 2016 16:22 IST

country's leading zinc producer and part of Vedanta Resources

Hindustan Zinc Ltd Q2FY17

Standalone Results Q2FY17: (Rs. in crore)

Q2FY17 YoY (%)
Revenue 3,877 [11.0]
EDITDA 2,077 [5.3]
EBITDA Margin (%) 53.6 323
Net Profit (adjusted) 1,902 [15.4]
***EBITDA margin change is bps

Hindustan Zinc’s Q2FY17 numbers came in above estimates. Revenue came in 15.2% higher than the street estimate of Rs 3365 cr. EBITDA margin was higher by 300 bps from the estimate of 50.5%. And net profit was 27.6% higher than the estimated figure of Rs 1491 cr.

Management guidance for a stronger H2 based on planned mine production.

Revenue for the quarter declined 11% yoy to Rs 3,877 cr. This was due to lower volumes partly offset by higher zinc and silver prices and rupee depreciation.

The EBITDA fell by 5.3% yoy to Rs 2,077 cr while EBITDA margins improved by 320 bps yoy to 53.6%. This was largely due to mined metal production being lower by 20% yoy while realizations improved and power and fuel expenses fell 61% yoy.

Net profit fell 15.4% yoy to Rs 1,902 cr primarily due to the change in the method of depreciation and lower other income due to smaller corpus.

Technical View:

Hindustan Zinc Ltd ended at Rs. 248.9, up by 4.05 points or 1.65% from its previous closing of Rs. 244.85 on the BSE.
The scrip opened at Rs. 246.8 and touched a high and low of Rs. 251.9 and Rs. 245.5 respectively. A total of 3967296(NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

BSE 283.70 5.60 (2.01%)
NSE 283.65 5.20 (1.87%)

***Note: This is a NSE Chart

 

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