Hindustan Zinc on Friday posted its third quarter profit at Rs 2028 crore, down 5.9 per cent in comparison to Rs 2156 crore during the corresponding quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 7067 crore, down 7.4 per cent as against Rs 7628 crore during the third quarter of FY23. According to a CNBC TV18 poll, Hindustan Zinc was expected to record Q3 profit at Rs 1895 crore and revenue was estimated to be at Rs 7495 crore.
EBITDA for the quarter was Rs 3,559 crore, down 4 per cent yoy in line with the revenue from operations and cost improvement. While the total income recorded during the quarter in review was at Rs 7606 crore, total expenses for the quarter stood at Rs 4937 crore.
In terms of major milestones, Hindustan Zinc said that its silver production reached 197 MT during Q3FY24, up 22 per cent on-year. It also reported its highest ever nine months’ mined metal & silver production, driving the attainment of industry leading CAGR and advancing towards achieving annual guidance. Further, the company also recorded lowest cost of production for zinc in the last 10 quarters at $1,095 per MT and 4th consecutive quarter of cost reduction.
Mined metal production for the quarter was 271 kt, up 7 per cent y-o-y, driven by higher ore production at Rampura Agucha and Sindesar Khurd mines, further supplemented by improved mined metal grades on-year. Refined metal production for the quarter was 259 kt, up 1 per cent yoy in line with the plant availability. Integrated zinc production for the quarter was 203 kt, down 4 per cent yoy. Refined lead production for the quarter was 56 kt, up 21 per cent on-year on account of pyro operations being operated on lead mode for longer duration as compared to base period to maximize silver production. Saleable silver production for the quarter was 197 MT, up 22 per cent yoy in line with the lead metal production and higher accumulation of WIP in Q2 FY24.
Arun Misra, CEO, said, “With our consistent focus on operational excellence, Hindustan Zinc delivered record nine-months mined metal and silver production to leverage the elevated silver price opportunities. The Company’s sustainable operational progress is reflected in its industry leading compounded annual production growth rate supplemented by safe practices.”
“On the sustainability front, advancing towards our decarbonisation mission, Hindustan Zinc has initiated the deployment of electric and LNG vehicles in its operations for inter-unit movements and finished goods transportation, thereby reducing the Scope 3 emissions. I am also happy to report that Hindustan Zinc has been ranked highest in the S&P Global Corporate Sustainability Assessment (CSA) 2023 among 238 companies with the score of 85 out of 100 under the metals and mining sector, underscoring our dedication to sustainable and responsible mining practices,” he added.
Hindustan Zinc generated cash flow of Rs 2,097 crore during the quarter. As on December 31, 2023, the Company’s gross investments and cash & cash equivalents were Rs 9,743 crore as compared to Rs 11,393 crore at the end of September’23 which was invested in high quality debt instruments. Total borrowings outstanding as on Dec’23 was Rs 10,111 crore.
Sandeep Modi, CFO, said, “This marks Hindustan Zinc’s fourth consecutive quarter of consistent cost improvement and the lowest cost in the last 10 quarters. We continue to remain focused on cost optimisation, operational efficiencies, working capital management, digital improvements and shareholder value maximisation. During the quarter, Hindustan Zinc delivered a steady margin of c.49 per cent, bolstered by operational milestones and cost reduction. The Company is now in the first decile of the global zinc mining cost curve preserving its cost leadership globally and targets to achieve its designed cost in the near future.”