Hindustan Zinc soars 4% on healthy September 2020 quarter

EBITDA during the quarter, came in at Rs2,952cr increasing by 39% yoy and 85% sequentially on account of higher revenue and lower operating costs.

Oct 21, 2020 09:10 IST India Infoline News Service

Hindustan Zinc
Vedanta Group-backed Hindustan Zinc posted a net profit of Rs1,940cr, registering a growth of 43% sequentially and down by 7% on year-on-year (yoy) basis, due to higher depreciation & amortisation, finance cost and higher tax rate due to change in income mix.

On Wednesday, Hindustan Zinc stock was trading at Rs232.30 per piece surging by 4.19%

Swayam Saurabh, CFO at Hindustan Zinc said, "Our operational discipline and focussed cost optimisation programmes leveraging technology & digitalisation are driving our cost lower and is evident in our financial performance. Our unwavering focus to invest in high IRR projects and strong cash conversion discipline is enabling us to stay ahead of the curve and deliver industry-leading returns."

Meanwhile, revenue from operations was at Rs5,660cr, rising by 25% yoy led by higher metal volumes, higher silver prices aided by rupee depreciation partly offset by lower zinc & lead LME prices.

Notably, zinc sales volume climbed by 8% yoy and lead sales volume by 3% yoy in line with higher production.

EBITDA during the quarter, came in at Rs2,952cr increasing by 39% yoy and 85% sequentially on account of higher revenue and lower operating costs.

Arun Misra, CEO of Hindustan Zinc said, "On the back of streamlined operations, we continue to deliver record volumes despite the challenges posed by the pandemic. We are setting up Hindustan Zinc for its next phase of growth and are confident to deliver superior value to our shareholders in a sustainable manner."

So far on Sensex, the company's stock advanced by 6% on Wednesday. 

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