Hindustan Zinc Ltd on Friday announced its fiscal first quarter earnings. The company posted profit for the period at Rs 2,345 crore, up 19.4 per cent in comparison to Rs 1,964 crore during the corresponding quarter of FY24, on the back of record first quarter metal production and market tailwinds. It recorded revenue from operations at Rs 7,893 crore, up 11 per cent as against Rs 7,111 crore posted during the same period of previous financial year. The revenue growth was driven by better metal volume and metal and silver prices, further supported by a strong dollar and partly offset by lower silver volume. The company EBITDA stood at Rs 3,946 crore, up 18 per cent on-year.
While the company’s zinc, lead and others segment recorded Q1 revenue at Rs 6,421 crore, silver metal reported revenue of Rs 1,427 crore, and wind energy posted revenue at Rs 45 crore.
Arun Misra, CEO, Hindustan Zinc, said, “Hindustan Zinc has started the year on a strong note, recording highest ever first quarter mined and refined metal production, leveraging strong metal prices during the quarter. It also gives me immense pleasure to inform you that we have expedited the commencement of our renewable energy power delivery with the receipt of the first flow of RE power from Serentica 180 MW solar project in May 2024. Further, we are set to accelerate our sustainability journey through contribution towards economic prosperity & environmental responsibility, and diversification by catering to high-end sectors responsibly with our strategic partnerships for utilising waste streams for extracting saleable products and supplying for next-generation nickel zinc batteries.”
The company recorded the highest-ever first quarter mined and refined metal production. Mined metal production for the quarter was 263 kt, recording the highest ever first quarter production. It is up 2 per cent YoY on account of improved mined metal grades, and lower 12 per cent QoQ in line with mine preparation activities being carried out every year in the first quarter.
Refined metal production recorded Q1 production at 262 kt, up 1 per cent YoY. It is down 4 per cent sequentially in line with the plant availability and pyro operations on lead mode from June 2024. Refined zinc production for the quarter was 211 kt, up 1 per cent YoY.
Saleable silver production for the quarter was at 167 MT, down 7 per cent YoY in line with lead metal production and WIP built up in the normal course of the business, on account of pyro operations being run on lead mode from June 2024. This WIP will be liquidated in the subsequent period.
Sandeep Modi, CFO, Hindustan Zinc, said, “Ascertaining HZL’s global cost leadership, we have suppressed the cost of production for the quarter at $1,107 per tonne, clocking a figure lower than last three financial years. With a holistic focus on operational cum financial excellence, we expanded the margins during the quarter, along with a commendable increase in the domestic primary zinc market share.”
In the regulatory filing, Hindustan Zinc said that the company has a robust free cash flow from operations of Rs 3,432 crore pre capex of Rs 1,000 crore (including growth capex of Rs 291 crore) and RE power investment of Rs 230 crore for Q1FY25 contributing to a healthy balance sheet with AAA credit rating.