Hindustan Zinc shares drop 5% after company announces dividend
Hindustan Zinc fell nearly 5% on the NSE in Monday's trade after the announcement of a Rs 7 per share interim dividend for the current financial year, which will incur an expenditure of Rs 2957.72 crore for the Vedanta subsidiary. The traded volume of Hindustan Zinc on the NSE was over 13.97 lakh shares with the total traded value at Rs 4,569 crore at 10:10 am. Meanwhile, Vedanta shares gained as the company, which owns 64.92% stake or over 274.31 crore shares in Hindustan Zinc, will likely be the biggest beneficiary of the payout and receive Rs 1920.21 crore as dividend money.
The dividend payout will be 350% on the face value of Rs 2 per equity share for the financial year 2023-24, the exchange filing said. The record date for the purpose of payment of the interim dividend will be Saturday, July 15, 2023. The returns given by Hindustan Zinc shares over the last 12 months stand at nearly 27%, according to Trendlyne data which is higher than the return of 20% given by Nifty50 during this time.
On Friday, the stock ended with gains amid strong buying action. Hindustan Zinc shares are trading at a discount of 14% from their 52-week high of Rs 383 which they hit in January, this year. Hindustan Zinc's consolidated net profit fell 12% to Rs 2,583 crore for the fourth quarter ended March.
It was Rs 2,928 crore in the same period last year. Revenue from operations, too, dropped 4% to Rs 8,281 crore for the reporting quarter, mainly on account of lower zinc, lead and silver prices, partly offset by higher metal and silver volumes. The company reported an EBITDA of Rs 4,208 crore for the March quarter, down 16.0% year-on-year (YoY) and up 13.2%, sequentially.
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