Hindustan Zinc reported strong financial results for the first quarter ending 30 June, 2024 of financial year 2024-25 (Q1FY’25). The company’s net profit rose 19% to INR 2,345 crore from INR 1,964 crore seen in the corresponding period last fiscal.
Revenue increased 11% to INR 7,893 crore, compared to INR 7,111 crore seen in CPLY. EBITDA grew by 18% to INR 3,946 crore, up from INR 3,347 crore in CPLY. The company’s profit margins improved to 48.5%, up by 257 basis points.
Hindustan Zinc achieved its highest-ever first-quarter metal production and is on track for its lowest cost in four years at $1,107/t. EBITDA rose 18% y-o-y to INR 3,946 crore, with margins improving to 48.5%.
Operational performance
Hindustan Zinc achieved a record 263 kilo tonne (kt) of mined metal production in Q1, up 2% y-o-y but down 12% q-o-q due to annual mine preparation activities. Refined metal production also hit a record at 262 kt, up 1% y-o-y but down 4% q-o-q due to plant availability and lead mode operations. Saleable silver production dropped 7% y-o-y and 12% q-o-q, affected by lead production adjustments and work-in-progress (WIP) build-up.
Financial performance
Revenue for the quarter was at INR 8,130 crore, up 12% y-o-y due to higher metal volumes and prices, partly offset by lower silver volumes. Zinc production cost was $1,107/t, down 7% q-o-q but up 5% q-o-q. EBITDA increased 17% y-o-y to INR 3,946 crore, and net profit rose 19% y-o-y to INR 2,345 crore, driven by higher EBITDA despite higher taxes.
Production:
Mined metal production: In Q1 FY’25, mined metal production increased by 2% y-o-y due to improved grades but decreased by 12% q-o-q, reflecting standard mine preparation activities for the first quarter.
Refined metal production: Refined metal production rose 1% y-o-y but fell 4% q-o-q, due to plant availability and pyro operations operating in lead mode from June 2024.
Saleable silver production: Saleable silver production decreased by 7% y-o-y and 12% q-o-q, impacted by lead metal production and a build-up of work-in-progress, expected to be addressed in future periods.
Zinc production costs
The cost of production for zinc stood at $1,107/t, down 7% y-o-y due to lower coal and input prices, and improved coal availability, but up 5% q-o-q reflecting changes in volume and grade.
Low carbon zinc
Hindustan Zinc advanced sustainability by launching EcoZen, Asia’s first low-carbon zinc. It also partnered with AEsir Technologies for zinc-based energy storage solutions.
Hindustan Zinc has made strides in sustainability by beginning to receive renewable energy from Serentica’s 180-MW solar project in May 2024. Additionally, the company also launched its first TNFD Report and India’s first AI-based Digital Integrated Report featuring the GenAI chatbot “Zincky”.
The company has also partnered with AEsir Technologies to develop zinc nickel batteries, advancing its commitment to global energy transition.
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