Hindustan Zinc, a leading mining company, has posted significant growth in its Q2 earnings for FY25, reporting a consolidated net profit increase of 34.6% to ₹2,327 crore. This impressive rise comes as an encouraging sign for those involved in share market investments, particularly within the mining sector. During the same period last year, the company recorded a net profit of ₹1,729 crore, showcasing its resilience in a challenging market environment.
In the second quarter of FY25, Hindustan Zinc reported a 21% increase in revenue, reaching ₹8,004 crore, compared to ₹6,619 crore in the corresponding quarter last year. This growth has reinforced confidence among investors engaging in share market investments, especially as the company continues to outperform market expectations. The rising demand for zinc and silver, coupled with operational efficiency, has propelled the company's financial performance.
Hindustan Zinc's earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q2 FY25 came in at ₹4,123 crore, marking a substantial 31% growth compared to ₹3,139 crore in the previous year. This increase in EBITDA reflects the company's strong operational capabilities, which is a key factor for those considering share market investment in such firms. The EBITDA margin also improved, standing at 50%, up from 46.2% in the prior-year period.
Following the announcement of its robust Q2 results, Hindustan Zinc shares rose 0.8% on the National Stock Exchange (NSE), closing at ₹512.55. Similarly, the stock was up by 1% on the Bombay Stock Exchange (BSE), reaching ₹513.25. The stock has shown steady growth, gaining 3.2% over the past month and rising by 60.6% year-to-date (YTD).
This stock performance has attracted significant attention from those interested in share market investments, particularly within the commodities sector.
Hindustan Zinc reported its highest-ever second-quarter mined metal production, achieving 256 kilotonnes (KT), a 2% increase year-on-year. The company's strong production numbers are a result of higher ore production at its Zawar Mine, though it saw a 2% dip quarter-on-quarter due to lower overall mined metal grades. For those looking to diversify their share market investments, such record-breaking performance adds to the company's appeal.
The company generated ₹3,605 crore in free cash flow from operations for Q2 FY25, even after accounting for capital expenditures (capex) of ₹1,004 crore. As of 30 September 2024, Hindustan Zinc's gross investments and cash equivalents amounted to ₹7,948 crore. This healthy cash position makes the company a strong contender for long-term share market investment, especially for those seeking stability and growth.
Commenting on the company's performance, CEO Arun Misra highlighted Hindustan Zinc's efforts in leveraging high silver prices. The company has focused on maximising its silver production, which saw a 10% sequential increase in volumes. This strategy, coupled with strong operational performance, makes Hindustan Zinc a noteworthy option for those looking at share market investments in the mining and commodities sector.
Hindustan Zinc, a Vedanta Group company, remains a key player in the global zinc and silver markets, positioning itself as the second-largest producer of integrated zinc and the third-largest producer of silver globally. This strong market presence, along with its latest financial performance, continues to attract investors seeking share market investments in resilient and high-performing sectors.
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