The shares of Hindustan Zinc, a subsidiary of Vedanta Limited, were trading 1.7 per cent higher at Rs 324 levels till the afternoon on Thursday. In the past week, the shares have gained 10 per cent and in the span of a month, it has gained approximately 18 per cent.
The company recently announced a second interim dividend for the financial year 2022-23. It will pay a dividend of 775% of its face value of Rs 2 which amounts to Rs 15.5 per share. The company will pay Rs 6,500 crore in the form of dividends to its shareholders. The record date for the purpose has been set as November 24.
The company announced an interim dividend of 1050% of its face value which was around Rs 21 per share in July this year.
Its parent company, Vedanta Limited holds a 64.92% stake in Hindustan zinc. Based on this, the company is expected to get nearly Rs 4,251.77 crore of the total interim dividend which is to be issued. The government, which owns a 29.5 per cent stake is likely to get Rs 1,932.03 crore out of the total.
In Q2FY23, the company reported a consolidated net profit of Rs 2,680 crore, up by nearly 33% compared to Rs 2,017 crore in the same quarter a year earlier.
Their revenue from operations in the period grew by over 36 per cent to Rs 8,336 crore up from Rs 6,122 crore Year on Year. It was backed by higher refined metal & silver volumes, gain from strategic hedging, zinc prices, and favourable exchange rates partly offset by lower lead and silver prices.
Hindustan Zinc Limited is an Indian integrated mining and resources producer of zinc, lead, silver, and cadmium. The company is known to pay good dividends. The previous year, it paid a dividend of Rs 21 per share. In FY21, it paid a total of Rs 37.8 per share.
The company has a market capitalization of Rs 1,37,048 crores and a high dividend yield of 5.56 per cent as on November 17th, 2022.
Written by Anoushka Roy
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