Hindustan Zinc jumps 4% as board approves dividend of Rs 21.30 per share

Illustration: Ajay mohanty
Shares of Hindustan Zinc gained 4 per cent to Rs 232.25 on the BSE on Wednesday after the company said its board has approved interim dividend of Rs 21.30 per equity share i.e. 1,065 per cent on face value of Rs 2 per share for the financial year 2020-21, amounting to Rs 9,000 crore.

The company has fixed October 28, 2020 as the record date for the purpose of determining the eligibility for payment of interim dividend.

Meanwhile, Hindustan Zinc reported a mixed performance for the July-September quarter (Q2FY21). The company’s consolidated net profit dipped 7 per cent year on year (YoY) at Rs 1,940 crore, due to higher tax provision. Total sales, however, rose 25 per cent YoY at Rs 5,660 crore.

Ebitda (earnings before interest, taxes, depreciation, and amortization) came in at Rs 2,952, up 39 per cent YoY, while margin improved 515 basis points to 52.15 per cent from 46.99 per cent. Hindustan Zinc is the leading global integrated producer of zinc, lead and silver.

“The topline came in line with our estimate while Ebitda and PAT came in lower than our estimate. Going forward, the management expects both mined metal and finished metal production in FY21 to be at 925-950 KT each while saleable silver production is projected at around 650 tonne,” ICICI Securities said in a note.

The company has announced a healthy dividend of Rs 21.3 per share (record date October 28, 2020), resulting in a dividend yield of around 10 per cent, it said.

At 10:11 am, Hindustan Zinc was trading 3 per cent higher at Rs 230 on the BSE, as compared to 1 per cent gain in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 3.5 million shares changing hands on the NSE and BSE, so far.

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