Hindustan Zinc Q4 results: Net profit rises 18% to Rs 2,928 cr, revenue jumps 27%

Mining firm Hindustan Zinc Limited (HZL) on Friday reported a rise of 18 per cent year-on-year (YoY) on its consolidated net profit  at Rs 2,928 crore for the quarter ended 31 March, 2022 mainly driven by higher volumes and higher metal prices. The Vedanta Group-owned company had reported a net profit of Rs 2,481 crore in the year-ago period. 

The revenue from operations jumped 26.6 per cent to Rs 8,797 crore in the said quarter from Rs 6,947 crore in the same quarter last fiscal led by higher zinc volumes and zinc LME prices, as well as favourable exchange rates while partly offset by lowerlead and silver volumes. Over the year, zinc and lead LME prices were up 36.5 per cent and 15.7 per cent, respectively, HZL said in a regulatory filing.

Sequentially revenue increased 10.1 per cent, primarily due to higher zinc LME and metal volumes and partially offset by lower silver volumes.

The company also stated that mined metal production for the quarter was at 295 kt, up 2.6 per cent y-o-y on account of higher ore production at Rajpura Dariba, Sindesar Khurd & Rampura Agucha mines. 

Sequentially mined metal production grew by 17.2 per cent on account of higher ore production from Rajpura Dariba, Rampura Agucha, Sindesar Khurd & Zawar mines supported by better mining grades.

For the full year, the company claimed it had the "best-ever mined metal production of 1,017 kt, up 4.6% Y-o-Y. The one million mark was crossed for the first time owing to higher ore production across all our locations."

Further, HZL's EBITDA, or earnings before interest, taxes, depreciation, and amortization, for the quarter was Rs 5,007 crore, up 29.2 per cent y-o-y and 14 per cent sequentially. EBITDA for the full year was at Rs 16,289 crore, up 39 per cent y-o-y. 

Commenting on the performance, Arun Misra, CEO, said: “Hindustan Zinc delivered best-ever annual mined metal production and touched the record one million tonne mark this year. Our production of refined metal was also highest ever. With the exit run-rate for refined metal at 1.2 mtpa, we are fully geared for another stellar performance this year."

"Our focus is to produce more and more of world-class value-added zinc alloy products with the use of latest technology
and equipment. Hindustan Zinc is committed to decarbonise its mining operations and deliver on its ESG road map to achieve net zero by 2050," he added. 

Sandeep Modi, Interim CFO, said: “Hindustan Zinc delivered record breaking performance with highest-ever annual Revenue, EBITDA & PAT. With stringent cost and cash conversion discipline, we continue to deliver industry leading returns, while investing towards a sustainable business." 

With ongoing asset optimization & integration initiatives as well as proactive measures towards combating input commodity inflation, we will continue to produce essential resources for the world & thereby create long lasting value for all stakeholders," he added.

Shares of Hindustan Zinc on Friday closed 1.37 per cent lower at Rs 344.90 apiece on BSE.