Hindustan Zinc up nearly 3% after company announces interim dividend of ₹19 per share

The interim dividend is the highest since 2023 and will especially benefit the promoter company, Vedanta, which holds a significant stake in Hindustan Zinc.

Shares of Hindustan Zinc were under pressure recently and have lost over 20% in the past month due to Vedanta offloading its stake through an offer-for-sale (OFS). Vedanta reduced its stake by 3.17% in the company. The 3.17% stake includes 0.29% of the total paid-up capital of the company which was triggered due to an oversubscription option in the offer being triggered. The OFS saw the sale of 13,37,44,56 equity shares or 1.22% of the total issued and paid-up capital of Hindustan Zinc.

For the quarter ended June 30, 2024, Hindustan Zinc reported a 19% year-on-year (YoY) rise in net profit to ₹2,345 crore. The company’s revenue for the quarter climbed 12% YoY to ₹8,130 crore.

In Q1FY25, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in higher by 17% YoY to ₹3,946 crore.

Zinc sales for the quarter jumped 14% YoY to ₹5,325 crore while silver sales grew by 10% YoY to ₹1,427 crore. Lead sales in Q1FY25 inched higher by 4% YoY to ₹998 crore while other sales saw an uptick of 7% YoY.

Hindustan Zinc reported that Q1FY25 was the company’s highest-ever first-quarter mined and refined metal production. Further, the company reported its entry cost of production at $1,107 per metric ton which was the lowest in 4 years.

Shares of the company have risen by nearly 18.5% since the beginning of the year. The stock has gained over 32% in the past year