Hindustan Zinc Ltd (HZL) is set to announce its results for the September 2024 quarter (Q2FY25) and first half of current fiscal year (H1FY25) on Friday, October 18.
Hindustan Zinc Ltd (HZL) is set to announce its results for the September 2024 quarter (Q2FY25) on Friday, October 18 as the analysts tracking the stock believe that the metal player is likely to report a strong set of numbers on a year-on-year (YoY) comparison, while the numbers may remain flattish or muted on quarter-on-quarter (QoQ) basis.
Brokerages are expecting net profit, Ebitda and revenue to rise sharply on yearly comparison but mild pressure can be seen on the numbers on QoQ basis, even after higher volumes and margins expansion. Higher zinc and silver prices are supportive for the HZL in the current quarter and dividend announcement will be another factor to watch out for.
Nuvama Institutional Equities expect Hindustan Zinc to report a revenue of Rs 8,026 crore for the second quarter of the current year, flat on a sequential basis, but up 18 per cent on YoY basis. Its ebitda may come in at Rs 4,012.2 crore, marginally up on QoQ basis, but 28 per cent up YoY. Core PAT is seen at Rs 2,360 crore, increased 36 per cent YoY, but muted sequentially.
The brokerage expects that higher silver volume and lower zinc CoP would offset lower zinc-lead prices. CoP is expected to be slightly lower for the quarter, it said. Nuvama had a ‘reduce’ rating on Hindustan Zinc.
Motilal Oswal Financial Services expects sales to come in around Rs 7,800 crore, up 15 per cent YoY but down 4 per cent QoQ. It expects Ebitda to come in at Rs 3,900 crore, rising 23 per cent YoY, but flattish sequentially. The company is likely to report a net profit of Rs 2,200 crore, up 29 per cent YoY but down 5 per cent QoQ.
Motilal Oswal believes that the guidance on CoP, volumes, and realizations shall be critical. The brokerage will be keenly watching out the guidance on future dividend payout is important. It also awaits further insights on any other update related to the change in corporate structure, if any. The brokerage has a ‘neutral’ rating on the stock with a target price of Rs 570.
Kotak Institutional Equities pegs revenue of HZL at Rs 7,985 crore, up 18 per cent YoY but down 2 per cent QoQ. Ebitda is seen at Rs 3,933 crore, flat sequentially but rising 25.3 per cent YoY with Ebitda margins expanding 303 bps YoY to 49.3 per cent. PAT may come inat Rs 2,312 crore, up 34 per cent YoY but marginally down sequentially.
“We expect zinc, lead and silver sales to increase YoY by 7 per cent, 10.5 per cent and 1.7 per cent during the quarter. We estimate EBITDA to increase primarily led by higher YoY zinc and silver prices and improved volumes,” said Kotak, which has a ‘sell’ rating on the stock with a target price of Rs 365 on HZL.
Shares of Hindustan Zinc settled at Rs 507.95 on Thursday, falling half a per cent. The total market capitalization of the company stood at Rs 2.14 lakh crore for the day
