Hindustan Zinc Q2 Results: Vedanta unit reports 13% profit growth, margin expansion

Hindustan Zinc Ltd., the subsidiary of Anil Agarwal-owned mining conglomerate Vedanta Ltd. reported results for the September quarter on Friday, October 17, which were higher across most parameters.

Net sales for the quarter increased by 3.5% from the same quarter last year to ₹8,550 crore.

Profitability for the period increased by 13.8% to ₹2,649 crore from ₹2,327 crore. The profitability was aided by a decline in total expenses for the company and finance costs.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 8% from the year-ago period to ₹4,446 crore from ₹4,133 crore.

EBITDA margin for the quarter increased by nearly 200 basis points to 52% from 50.08% last year.

In its business update shared earlier, the company had reported a 6% year-on-year drop in saleable metal production. Refined zinc production increased by 2% from last year, while refined lead production fell by 29%. Silver production declined by 22% year-on-year. Hindustan Zinc is the only listed pure-play Silver-linked stock in India.

Realisations will be higher for the company as zinc prices have risen 7% sequentially during the quarter, while Silver prices have increased by 17%.

Shares of Hindustan Zinc are currently trading 0.9% lower on Friday at ₹502.25. The stock has risen 10% in the last one month.