Hindustan Zinc Q1 FY24 results: Net Profit dips 37% to Rs 1,964 crore; revenue falls 22%

Hindustan Zinc Ltd (HZL) on Friday reported a nearly 37 per cent drop in its year-on-year (YoY) profit during the June 2023 quarter (Q1 FY24). Net profit for the quarter was at Rs 1,964 crore, down 36.50 per cent (YoY)and 24 per cent sequentially (quarter-on-quarter), primarily on account of lower EBITDA partly offset by lower tax expense. EBITDA for Q1 FY24 was Rs 3,359 crore, down 36.40 per cent YoY and 20.20 per cent QoQ. 

Revenue from operations during the quarter was Rs 7,282 crore, down 22.40 per cent YoY. Sequentially, revenue was down by 14.40 per cent.

"Amidst the macro-economic headwinds moderating the base metal prices, Hindustan Zinc had a positive start of the year with a strong operational performance, attributable to consistent cost optimisation efforts and operational efficiencies, thereby protecting margins. With a first-time sequential drop in first quarter cost of production in the recent past, we continue to maintain our cost leadership in the global zinc cost curve. As we advance forward in this transformational year, we continue to focus on our ongoing development projects, automation & digitalisation investments and sustainable operations," HZL CFO Sandeep Modi said.

The company also said it has recorded highest-ever first quarter mined metal and silver production with consistent refined metal production.

"Hindustan Zinc has once again demonstrated its ability to deliver in a highly volatile external environment by accomplishing highest ever first quarter mined metal and silver production and maintaining a consistent run-rate of refined metal production," CEO Arun Misra said.

Sharing an outlook for FY24, the company said, "Both mined metal and refined metal production in FY24 is expected to be higher than last year. Mined metal is expected to be between 1,075-1,100 kt & refined metal production in the range of 1,050-1,075 kt."

It also said that FY24 saleable silver production is projected to be between 725-750 MT. "Zinc cost of production in FY24 is expected to be in between $1,125-1,175 per MT. Project capex for the year is expected to be in the range of $175-200 million," it added.

Currently, Vedanta Group holds a 64.90 per cent stake in Hindustan Zinc. Recently, a Reuters report suggested that the government may postpone plans to sell its stake in Hindustan Zinc until there is a turnaround in the industry's fortunes.

Shares of HZL were last seen trading 1.70 per cent lower at Rs 317.45 over their previous close of Rs 322.95.

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