Hindustan Zinc Q3FY14 Result

Integrated zinc, lead and silver producer, Hindustan Zinc, announced its Q3FY14 results on January 17, 2013. On a yearly basis, the company's topline increased by 9% to Rs 3450 crore. This growth is mainly due to the increase in the sales volume of zinc and lead during the quarter. The production of refined Zinc grew by 17% on a YoY basis to 196 MT from its Rampura Agucha and Zawar mines.

The sales would have registered a still higher growth, but were impacted to some extent by a major decline in the sales of silver. Silver sales were down 14% on a YoY basis to Rs 388 crore. Its net profit for the quarter came in at Rs 1723 crore, up 7%  on a YoY basis. 

At the operating level, its profit grew by about 22% to Rs 1828 crore despite a rise in the cost of zinc production. The improvement in operational profitability was primarily driven by higher volumes of zinc production and lower royalty expenses during the quarter. Interestingly, its EBITDA margin has shot up by 600 basis points on a yearly basis to 53%. However, its net margin was down 100 basis points to 50%, due to a rise in its tax cost, which rose by Rs 102 crore to Rs 305 crore (YoY). 

Its mined metal production is expected to remain at 950,000 MT for FY14. Its Kayad mine has become operational during the quarter and its commercial production will start in the current year, which will boost the sales volume of the company to some extent. The stock was seen trading 3% higher from the previous close on Monday.