Hindustan Zinc Ltd - Q4FY12 - First Cut - GEPL Capital

Net sales for Hindustan Zinc Ltd for Q4FY12 stood at Rs. 31.35 bn, showing a decline of 3.2% on Y-o-Y, driven by decline in production volume as well as realisation for Zinc.

EBIDTA margin for the quarter declined by 790bps to 52.9%, this was on account of more than proportionate increase in costs (16% Y-o-Y) as compared to realisation.

Net profit declined by 20.3% Y-o-Y.

Operational Performance:

Refined Zinc which had accounted for 77% of the total revenue in FY11 has shown a marginal decline of 2.1%. This was mainly on account of suspension of operation at 35 year old Vizag Zinc smelter during the quarter. However the new facility at Rajasthan Zinc smelters has been fully ramped up during the quarter, we expect the same to benefit going ahead.

Lead and Silver, which constituted around 6.9% and 5.2% of the total sales in FY11 respectively, have shown a record production for the Q4FY12 Quarter reporting a growth of 110% and 77% on Y-o-Y respectively.

Source : Equity Bulls

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