Hindustan Zinc Q2 results preview: Net profit likely to rise 30%, revenue growth seen at 15% YoY

Hindustan Zinc Q2 results preview: Hindustan Zinc Ltd has scheduled the release of its Q2FY25 results for Friday, October 18. Analysts anticipate significant year-on-year growth from the company, although the quarter-on-quarter figures might not be as robust.

Motilal Oswal Financial Services' report highlights the company's expected sales of around ₹7,800 crore, indicating a 15% increase year-on-year but a 4% decrease sequentially. EBITDA is forecasted to hit ₹3,900 crore, demonstrating a 23% rise year-on-year and remaining stable sequentially. The company is expected to report a net profit of ₹2,200 crore, showing a 29% growth year-on-year but a 5% decline sequentially.

Additionally, brokerage house, Kotak Institutional Equities, pointed out that it anticipates a 7% year-on-year increase in zinc sales, a 10.5% year-on-year increase in lead sales, and a 1.7% year-on-year increase in silver sales for the quarter. The brokerage firm predicts that EBITDA will increase mainly due to higher year-on-year zinc and silver prices and improved volumes.

Hindustan Zinc saw a consolidated net profit increase of 19.3% in the June quarter of FY25, reaching ₹2,345 crore, mainly due to higher EBITDA. This is a significant jump from the net profit of ₹1,964 crore reported in the same period last year.

The company's revenue from operations for the quarter was ₹8,130 crore, indicating a 12% year-on-year increase driven by improved metal volume and higher metal and silver prices. This growth was additionally supported by a strong dollar, although it was partly counteracted by lower silver volume, according to the company.

On Thursday, Hindustan Zinc share price closed 0.52% down at ₹507.95 apiece on the BSE.

Hindustan Zinc share price

According to Mahesh M Ojha, AVP — Research at Hensex Securities, Hindustan Zinc share price is range-bound in ₹485 to ₹520. On breaching above ₹520 to ₹525 resistance, we can expect the metal stock to touch ₹545 to ₹550. So, those who have this stock in portfolio are advised to hold the scrip maintaining stop loss at ₹485. Fresh investors can also buy the scrip maintaining stop loss at ₹485 and follow buy-on-dips strategy in every big dip.

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