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Hindustan Zinc
For 1QFY2012, Hindustan Zinc’s (HZL) net revenue increased by 44.6% yoy to `2,821cr
(marginally lower than our estimate of `2,941cr) on account of higher sales volume and
realisation. Despite the shutdown at Rampura Agucha mine during the quarter, zinc
volumes grew by 16.5% yoy to 192kt and lead sales volumes grew by 4.5% yoy to 15kt.
Silver sales volume increased by 14.2% yoy to 40,908kg and lead concentrate sales stood
at 10,086dmt. Average zinc, lead and silver realisation increased by 11.6%, 25.5% and
98.0% yoy, respectively. On the operating front, staff cost declined by 14.0% yoy to
`127cr, which led to EBITDA margin expanding by 406bp yoy to 56.4%. Thus, EBITDA
grew by 55.8% yoy to `1,592cr. Further, other income was higher by 124.3% yoy to
`355cr, which resulted in net profit growing by 67.8% yoy to `1,495cr despite depreciation
increasing by 19.8% yoy to `135cr and higher tax rate at 17.1% (net profit was in-line with
our estimate of `1,532cr). We continue to maintain our Buy recommendation on the stock.
However, our target price is under review.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hindustan Zinc
For 1QFY2012, Hindustan Zinc’s (HZL) net revenue increased by 44.6% yoy to `2,821cr
(marginally lower than our estimate of `2,941cr) on account of higher sales volume and
realisation. Despite the shutdown at Rampura Agucha mine during the quarter, zinc
volumes grew by 16.5% yoy to 192kt and lead sales volumes grew by 4.5% yoy to 15kt.
Silver sales volume increased by 14.2% yoy to 40,908kg and lead concentrate sales stood
at 10,086dmt. Average zinc, lead and silver realisation increased by 11.6%, 25.5% and
98.0% yoy, respectively. On the operating front, staff cost declined by 14.0% yoy to
`127cr, which led to EBITDA margin expanding by 406bp yoy to 56.4%. Thus, EBITDA
grew by 55.8% yoy to `1,592cr. Further, other income was higher by 124.3% yoy to
`355cr, which resulted in net profit growing by 67.8% yoy to `1,495cr despite depreciation
increasing by 19.8% yoy to `135cr and higher tax rate at 17.1% (net profit was in-line with
our estimate of `1,532cr). We continue to maintain our Buy recommendation on the stock.
However, our target price is under review.
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