The shares of India’s largest integrated zinc producer gained 3 percent to Rs 314.50 a share on Monday’s trade after CRISIL affirmed its Rating on the company’s short and long-term bank facilities.
At 11:10 a.m., Hindustan Zinc Ltd shares were trading at Rs 313.90 a share, up 2.73 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of Rs 1,32,400 crore.
According to the company’s exchange filing, CRISIL Rating Limited assigned/reaffirmed Hindustan Zinc Ltd ratings for long-term bank facilities as CRISIL AAA with a stable outlook and short-term bank facilities as CRISIL A1+ with a stable outlook.
The revenue of Hindustan Zinc Ltd has decreased by 22 percent year on year, from Rs 9,387 crore in Q1FY23 to Rs 7,282 crore in Q1FY24. During the same period, the company’s net profit fell by 36 percent, from Rs 3,092 crore to Rs 1,964 crore.
The Company’s return on equity increased from 28.08 percent in FY22 to 81.27 percent in FY23, while the return on capital employed rose from 37.65 percent to 86.71 percent during the same period.
The Company’s margins are in a strong position with a net profit margin of 30.82 percent and an operating margin of 45.81 percent.
The promoters of Vedanta Limited hold 64.92 percent of Hindustan Zinc Limited as of a recent shareholding pattern and domestic institutional investors hold a 32.49 percent stake in the company.
Hindustan Zinc Ltd is engaged in the manufacturing of three qualities of zinc — special high-grade zinc used in construction, infrastructure, and household appliances. The company also manufactures pure lead used in lead acid batteries, ceramic glazes, electrodes, etc, and silver used in photographic material, conductors, and jewellery.
Written by Omkar Chitnis
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