Hindustan Zinc Q2 Results: 650% Dividend PSU Company Reports 35% Jump In YoY Profit; Buy Or Not?

Hindustan Zinc Ltd (HZL) reported a 35% year-on-year rise in consolidated net profit for the second quarter of the fiscal year 2025 (Q2FY25), reaching Rs 2,327 crore. This is a significant jump from the Rs 1,729 crore profit posted in the same period last year. However, on a sequential basis, net profit saw a marginal decline of nearly 1% compared to Rs 2,345 crore in Q1FY25.

The company's consolidated revenue from operations also showed robust growth, rising 21% year-on-year to Rs 8,004 crore in Q2FY25, compared to Rs 6,619 crore in Q2FY24. Sequentially, the revenue increased by 1.4% from Rs 7,893 crore in the previous quarter.

The Vedanta-backed company's board has approved an investment of Rs 327 crore for acquiring a minimum 26% equity stake in Serentica Renewable India Private Limited (SRIPL) or its affiliates.

In a stock exchange filing, Hindustan Zinc stated, "The Board of Directors, in its meeting on October 18, 2024, approved entering into a Power Delivery Agreement (PDA) with Serentica Renewables India Private Limited or its affiliates. Through this agreement, the company will source 530 MW of renewable power (contracted capacity, including previous PDAs) on a Round The Clock (RTC) basis under a group captive arrangement for a period of 25 years. The company is expected to invest approximately ₹327 crore for a minimum 26% equity stake in Serentica."

Hindustan Zinc's financial performance was reflected in its stock price, which showed a minor gain of 0.6%, trading at Rs 511.30 per share on the National Stock Exchange (NSE) as of 3 pm on Friday. The stock has delivered returns of over 60% in the past year.

(This story is still unfolding, and additional details will be provided as they become available.)