India Energy Exchange Q2 profits down -9.2% at Rs44.3cr

India Energy Exchange Q2 profits down -9.2% at Rs44.3cr

Hindustan Zinc reported robust numbers for the Sep-20 quarter with sales revenues growing by 25.5% on a yoy basis and 41.9% on sequential basis at Rs5,660cr for the Sep-20 quarter. The operating profit for the period was also up 51% on a yoy basis at Rs2,300cr.

However, net profits for the quarter were down 6.8% on a yoy basis at Rs1,940cr in the Sep-20 quarter. The recovery from the Jun-20 quarter may be sequentially misleading as June was an exceptionally weak quarter in terms of top line due to the COVID impact. The OPM of HZL has expanded 700 bps to 40.6% in Sep-20 quarter while the net margins are lower yoy at 34.3%. Hindustan Zinc, as is known, is part of the Vedanta group.

Here are the financial highlights\

Particulars Sep-20 Quarter Growth (YOY) Growth (QOQ)
Total Revenues Rs5,660cr +25.47% +41.89%
Operating Profit Rs2,300cr +51.12% +122.87%
Net Profits Rs1,940cr -6.78% +42.75%
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs4.59 Rs4.93 Rs3.22
Operating Margins 40.64% +33.74% +25.87%
Net Profit Margin 34.28% +46.13% +34.07%

Key takeaways from the Sep-20 quarter results

  • The net cash generated from operating activities in the first half of FY21 was almost flat at Rs3,447cr.

  • Out of the total sales of HZL for the Sep-20 quarter, nearly 75% of the total revenues were accounted for by Zinc and Lead while the balance was accounted for by the production of silver. HZL continues to be a cash rich company.

  • The company has paid out an interim dividend of Rs.21.30 per share amount to R9,000cr and it remains one of the companies with the best dividend yield in the market.

  • For the quarter, HZL produced 238KT of mined metals, 237KT of refined metals production and 203MT of saleable silver production. The company has cash on books at Rs27,400cr as of Sep-20.