Hindustan Zinc Limited Q1FY22 Results: ANNOUNCED – PAT jumps 46% YoY on higher volumes, price recovery; June Quarter EPS at Rs 4.69

Hindustan Zinc Limited Q1FY22 – Hindustan Zinc on Thursday reported a net profit of Rs 1983 cr for the quarter ended 30 June which was up 46 per cent year-on-year (YoY), the company said in its filing to exchanges. Hindustan Zinc is a Vedanta Group company and produces, zinc, lead and silver. 

The company said that it produced “record-high first quarter refined metal and silver”. The mined metal production is 221kt; refined metal production stood at 236kt and the saleable silver production stood at 161 tn.  

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“We delivered highest-ever Q1 ore, refined metal and silver production,” the Chief Executive Officer (CEO) Arun Mishra said in the exchange filing. This is 15 per cent, 17 per cent and 37 per cent in the respective segments, Mishra said.  

Hindustan Zinc Limited Q1FY22 - Key highlights 

1. The revenue from operations stood at Rs 6378 cr, up 64 per cent YoY led by higher metal and silver volumes and higher zinc, silver and lead prices.  
2. The revenue was down 5 per cent on a sequential basis led by lower zinc, silver and metal volumes and lower metal premium. 
3. On a sequential basis net profit was down 20 per cent. The YOY performance was on the back of higher volumes and price recovery in metals. 

Hindustan Zinc FY22 Guidance –  

“In light of the rising input commodity prices, management is closely monitoring the situation and taking all necessary actions to combat it,” the company said in the exchange filing.  

1. Both mined metal and finished metal production in FY2022 is expected to be c.1025-1050kt 
2. FY2022 saleable silver production is projected at c.720 MT. 
3. Zinc cost of production in FY2022 is expected to remain below USD 1000 per MT. 
4. The Project capex for the year is expected to be approximately USD 100 million.  
5. The Earnings Per share for the reporting quarter stood at Rs 4.69 versus Rs 3.22 for Q1FY21 and Rs 5.87 for Q4FY21.  

The stocks of Hindustan Zinc Today fell almost 2 per cent to Rs 326.50 on the NSE. This stock hit its 52-week high of Rs 362.10 on 19 May 2021.