Hindustan Zinc Shares Decline After Q3 Earnings Miss Analyst Estimates
The company's Ebitda fell 17.82% year-on-year to Rs 3,469 in the third quarter of the ongoing fiscal year.
Shares of Hindustan Zinc Ltd. declined on Friday after its third-quarter operating profit missed analysts' estimates.
The Ebitda fell 17.82% year-on-year to Rs 3,469 in the third quarter of the ongoing fiscal year. The net profit dropped 20.18% year-on-year to Rs 2,156 crore in the said quarter, however, it was above analyst estimates at Rs 2,090.1 crore.
Vedanta Ltd. approved the sale of assets of its subsidiary Zinc International to the Hindustan Zinc Ltd. for $2,981 million (approx Rs 2,421.54 crore).
Hindustan Zinc Q3 FY23 (Consolidated, YoY)
Revenues down 2.72% at Rs 7,628 crore (Bloomberg estimate: Rs 7,819.3 crore)
Ebitda down 17.82% at Rs 3,469 crore (Bloomberg estimate: Rs 3,599.2 crore)
Ebitda margin at 45.48% vs 53.83% (Bloomberg estimate: 46%)
Net profit down 20.18% at Rs 2,156 crore (Bloomberg estimate: Rs 2,090.1 crore)
The board approved a dividend of Rs 13 per share. It appointed Priya Agarwal as chairperson of the company.
Shares of the company fell 9.89% on Friday, while the benchmark Nifty eased 0.05%. On Thursday, the stock hit a 52-week high of Rs 383 per share. The total traded volume stood at 18 times its 30-day average.
Out of the 15 analysts tracking the company, three maintain a 'buy' rating, four recommend a 'hold', and eight suggest 'sell' the stock, according to Bloomberg data. The 12-month consensus price target implies a downside of 12.8%.