Hindustan Zinc shares rise nearly 19% to hit record high after China data indicates rise in zinc prices

Shares of the Vedanta group firm surged to a 52-week high of ₹540.95 apiece, up by 18.59% from the previous close, on the NSE. More than 2.82 crore shares of the company changed hands on the bourse.

Hindustan Zinc shares closed the trade at ₹529 per share on the NSE, up by 15.97% from the previous close. HZL shares have rallied around 90% from its 52-week low of ₹284.60 hit in March 2023.

Zinc prices spurted by 2% to $2,955 per tonne on London Metal Exchange on Friday. The gains were supported by positive China trade data, which indicated a rise in imports and exports in April.

Chinese trade data also reflected a recovery in domestic and overseas demand. China is a major producer and consumer of zinc and improving demand supports zinc prices.

Hindustan Zinc is a leading miner and refiner of zinc metal in India. The company has the second-largest zinc reserves and resources globally.

Hindustan Zinc declares 500% dividend

The Vedanta group company also declared a final dividend of ₹10 per share, at 500% of a face value of ₹2 each, for the Financial Year 2024-25 on Tuesday, May 7. The company’s total dividend payout will stand at ₹4,225.32 crore, Hindustan Zinc informed the bourses.

Hindustan Zinc Q4 results

The company posted revenue of ₹7,549 crore for the March quarter. Net profit for the March quarter dropped by 21% to ₹2,038 crore. Profit was down 26% in FY24 at ₹7,759 crore.

HZL’s EBITDA rose by 2% to ₹3,637 crore in the March quarter compared to the previous quarter. EBITDA was at ₹13,677 crore in FY24, down 22% y-o-y, mainly on account of lower revenue partly offset by cost improvement.

Hindustan Zinc Ltd CEO Arun Misra said that FY 2023-24 had been a year of solid growth for HZL, with mined metal, refined metal, and silver recording its highest historic production levels, supported by a backdrop of fatality-free operations.