Hindustan Zinc – Unloading metallic veins

Hindustan Zinc Limited (HZL) is an Indian integrated mining and resources producer of zinc, lead, silver and cadmium. It is a subsidiary of Vedanta Limited. Earlier it was a Central Public Sector Undertaking, sold by Government of India to Vedanta Limited when Atal Bihari Vajpayee and Bharatiya Janta Party Government was in power in the year 2003. HZL is the world’s second largest zinc producer. The company is one of the world’s largest integrated producers of zinc and are among leading global lead and silver producers.

Quarterly Earnings Walkthrough

Hindustan Zinc has reported a decline of 12% in consolidated net profit and the total sales were down by 3% as compared to the corresponding quarter of the previous financial year.

Hindustan Zinc has achieved its highest production of mined metal at 301 kilo tonnes (kt) and refined metal at 269 kt for the last quarter of FY23.

Integrated zinc production for Q4FY23 was calculated at 215 kt which is a growth of 1.9% YoY and 2.3% sequentially.

Integrated lead production for Q4FY23 was at 54 kt which is a tremendous growth of 10% YoY and 17% sequentially, which has been supported by better plant availability and consistent MIC flow from mines.

Hindustan Zinc has achieved its highest ever annual refined metal production at 1032 kt (+6.7% YoY). It has also achieved a record full year integrated zinc production at 821 kt (+5.8% YoY) and integrated lead production at 211 kt (+10.2% YoY).

Word from the Board

Arun Misra, CEO, Hindustan Zinc. said that “We are progressing well on our strategic development projects directed towards capacity expansion, synergetic growth, and value integration.”

Sandeep Modi, CFO of the company said “This year, Hindustan Zinc surpassed its own records by delivering best ever financial performance, recording its highest ever annual revenue, EBITDA and PAT.”

Technical Analysis

Hindustan Zinc Weekly Candlestick Chart on Sharekhan’s TradeTiger

Hindustan Zinc stock price has taken support at the 38.2% retracement level in the recent months. Traders can initiate short trades on this stock as it approaches its distribution zone around the price of Rs 360. Investors may accumulate the stock when the price falls around Rs 260.

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