HINDUSTAN ZINC'S WINNING STREAK CONTINUES AHEAD OF DIVIDEND NEWS

Shares of Hindustan Zinc Ltd extended its winning streak for the seventh straight session as shares gained over 7 percent on May 3, just ahead of its expected dividend announcement.

The stock hit a fresh 52-week high of Rs 464 and at 10.30am, the stock was trading at Rs 456 on the BSE, up 6 percent from its previous close. So far this 2024, it has gained nearly 44 percent.

Earlier, the company said in a notice to exchanges that it will announce dividends on May 7, with a record date fixed on May 15. In FY24 so far, it has declared Rs 7 per share in July 2023 and Rs 6 per share in December 2023, totaling around Rs 5,493 crore. In FY23, it announced a final dividend of Rs 75.5 per share, totaling Rs 31,901 crore, compared to Rs 18 per share in FY22, totaling Rs 7,606 crore.

The financials

Hindustan Zinc Ltd, a Vedanta group firm, saw a 21% year-on-year decline in fourth-quarter net profit to Rs 2,038 crore due to global zinc price depression amidst slower demand growth compared to supply. Quarterly revenue dropped 12% to Rs 7,285 crore, while EBITDA fell 14% to Rs 3,637 crore.

Despite a 0.5% sequential rise in net profit and a 3% increase in revenue, lower zinc & lead prices and reduced lead volume contributed to the decline, partly offset by higher zinc & silver volumes, silver prices, and favorable exchange rates.

Industrial metal prices, including copper, aluminum, zinc, and lead, surged in April due to supply concerns. However, sustained price increases depend on increased zinc demand and a shift from anticipated metal surpluses. Despite falling metal prices, HZL maintained a 47% margin through continuous cost reduction, achieving its lowest costs in three years, according to CFO Sandeep Modi.

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2024-05-03T05:43:08Z dg43tfdfdgfd