Hindustan Zinc (HZ) Skyrockets 11% to Record Peak Following Board’s Approval of 500% Interim Dividend

• Hindustan Zinc shares surge 11 percent to a record high of ₹506.30 following the announcement of a ₹10 interim dividend per share for FY25.
• The company’s recent dividend marks a return to double-digit dividends, following payouts of ₹7 and ₹6 per share in the previous year.
• The total dividend outgo for FY25 will be ₹4,225.32 crore, providing significant returns to shareholders.

Hindustan Zinc shares hit a record high following the announcement of a substantial interim dividend, reflecting the company’s strong financial performance and commitment to shareholder returns.

Hindustan Zinc Announces Interim Dividend

Hindustan Zinc’s board has approved an interim dividend of ₹10 per equity share of a face value of ₹2 each for FY25. This marks a return to double-digit dividends, following payouts of ₹7 and ₹6 per share in July and December of the previous year. The total dividend outgo for FY25 will be ₹4,225.32 crore.

Stock Performance and Outlook

Following the dividend announcement, shares of Hindustan Zinc rallied 11 percent to hit a new high of ₹506.30 apiece. The stock has now jumped 77.6 percent from its 52-week low of ₹285.00, hit on March 15, 2024. In the last year, the stock has risen 46 percent, providing substantial returns to investors. The company’s strong financial performance and commitment to shareholder returns have contributed to its positive stock performance.

Financial Performance and Dividend Payout

For the March quarter, Hindustan Zinc posted a 21 percent year-on-year fall in its net profit at ₹2,042 crore, impacted by lower zinc and lead prices. However, the company’s financial position improved significantly, moving from a net debt of ₹370 crore in the December quarter to a net cash balance of ₹1,700 crore by the end of the March quarter. The company’s strong cash position has enabled it to announce a substantial dividend payout, providing significant returns to shareholders.

Conclusion

Hindustan Zinc’s announcement of a substantial interim dividend reflects its strong financial performance and commitment to shareholder returns. The company’s shares have performed well in the market, providing substantial returns to investors. Looking ahead, the company’s strong financial position and positive outlook suggest that it is well-positioned to continue delivering value to shareholders.