Shares of this large-cap mining stock under the Vedanta Group founded by Mr. Anil Agarwal jumped around 5 percent in Monday’s trading session after the company’s Board scheduled a meeting this week to consider a second interim dividend for FY23-24.
With a market capitalization of Rs 1.33 lakh crores, the stocks of Hindustan Zinc Limited started their trading session on Monday at Rs 317.80 and currently trades at Rs 315.55, gaining approximately 5 percent as compared to the previous closing levels of Rs 300.55 apiece.
The company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that the Board of Directors (BOD) of the company will be meeting on 6th December 2023 to consider a second interim dividend, if any, for FY23-24.
The Record Date for checking the eligibility of the dividend, if declared, is fixed to be 14th December 2023.
During the recent financial quarters, the company faced a dip in numbers especially the operating revenues and net profits. The former moved down from Rs 7,282 crores during Q1FY23-24 to Rs 6,791 crores during Q2FY23-24, and, the latter, during the same period, shifted down from Rs 1,964 crores to Rs 1,729 crores.
The company has a dividend yield of around 24 percent, and, glancing at the dividend history, the company, till now, has already paid out an interim dividend of Rs 7 per fully paid-up equity share.
As per the outlook provided by the company for FY24, the ‘mined metal’ production is expected to be between 1,075-1,100 kilotons (kt), and the ‘refined metal’ production between 1,050-1,075 kt.
Moreover, this financial year’s project capex for the company is expected to be around $175-200 million. Having a look at the company’s project updates, it secured a couple of them in Q2FY24 in states like Punjab, Rajasthan, etc for saleable zinc, alloys, and many more.
Hindustan Zinc Limited is engaged in the business of exploring, extracting, processing minerals, and manufacturing metals. Selling products under the brand names ‘HZL’ and ‘Vedanta’, the company is focused on mining and smelting zinc, silver, lead, and power generation through wind power and captive power plants.
Written by Amit Madnani
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