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Hindustan Zinc: A Weak Performance - Views on News from Equitymaster
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Hindustan Zinc: A Weak Performance
Jan 29, 2016

Hindustan Zinc has announced the third quarter results of financial year 2015-2016 (3QFY16). While the topline declined by 11% YoY, bottomline declined by 24% YoY basis.

Performance summary

  • Income from operations declined by 11% YoY during 3QFY16 and other operating income also declined by 8% YoY leading to decline in total income to 11% YoY.
  • Operating profit declined by 28.2% YoY and operating profit margin stood at 46%.
  • Net profit declined by 24% YoY on back of decline in operating profit, other income which was partly offset by decline in tax outgo which has declined by 85.6% YoY.
  • Net profit for the nine month ended FY16 declined by 3% YoY

Financial Snapshot

(Rs m) 3QFY15 3QFY16 Change 9MFY15 9MFY16 Change
Total Income 38531.4 34305.8 -11.0% 106627.1 110940.5 4%
Total Expenses 16550.5 18525.1 11.9% 52215.5 57912.4 11%
Operating profit (EBITDA) 21980.9 15780.7 -28.2% 54411.6 53028.1 -3%
Operating profit margin (%) 57.0% 46.0%   51.0% 47.8%  
Other income 8121.5 5546.7 -31.7% 22261.7 19872.7 -11%
Interest 7.9 51.1 546.8% 97 79.3 -18%
Depreciation 3179.0 2713.9 -14.6% 6173.9 5196 -16%
Profit before tax & exceptional items 26915.5 18562.4 -31.0% 70402.4 67625.5 -4%
Exceptional Item 0.0 0.0   28.1 0  
Tax 3121.8 448.5 -85.6% 8568.7 7451 -13%
Net Profit 23793.7 18113.9 -23.9% 61805.6 60174.5 -3%
Net profit margin (%) 61.8% 52.8%   58.0% 54.2%  
No. of shares (m)         4225.3  
Basic diluted earnings per share (Rs) ^         19.0  
P/E ratio (x) *         8.0  

*Based on trailing 12 month earnings

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