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Last Updated : Jan 20, 2015 12:49 PM IST | Source: Moneycontrol.com

Hind Zinc up 3% post Q3 nos; Macquarie maintains outperform

Macquarie maintains outperform rating on the stock with a target price of Rs 202 per share, stating the company has taken measures to offset the slower ramp up of production from underground mines which augurs well for FY16.

 
 
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Moneycontrol Bureau


Shares of Hindustan Zinc jumped 3.5 percent intraday on Tuesday after it posted December quarter earnings.  Its third quarter profit jumped 38.1 percent year-on-year to Rs 2,379 crore driven by other income. The bottomline and operational performance was ahead of expectations but revenue lagged estimates.


Macquarie maintains outperform rating on the stock with a target price of Rs 202 per share, stating the company has taken measures to offset the slower ramp up of production from underground mines which augurs well for FY16.

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"It needs 30 percent Y-o-Y growth in Q4FY15 to meet guidance target. The recent corrective action taken by HZL on extending the life of itsopen pit makes us more comfortable with FY16 volumes," the brokerage says in a note.


Meanwhile, HZL’s revenue grew 11.7 percent to Rs 3,853 crore in the quarter ended December 2014 compared to Rs 3,450 crore in same quarter last fiscal. The increase was driven by higher zinc LME and lead & silver metal volumes, partly offset by lower silver price and refined zinc volume, said the company in its filing.


Operating profit climbed 14.6 percent year-on-year to Rs 2,089 crore on better revenues and lower cost of production during the quarter. Operating margin expanded 130 basis points to 54.2 percent in the quarter gone by. Other income shot up 91.6 percent to Rs 812 crore from Rs 424 crore during the same period.

At 10:45 hrs Hindustan Zinc was quoting at Rs 163.55, up Rs 3.15, or 1.96 percent on the BSE.



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First Published on Jan 20, 2015 11:57 am
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