Hindustan Zinc Q3 results: Net profit slips 6% to Rs 2,028 cr YoY, revenue falls 7%; stock up 2%

Vedanta-owned Hindustan Zinc on Friday said its net profit dropped by 5.9 per cent to Rs 2,028 crore in Q3 FY24 in comparison to Rs 2,156 crore during the same quarter of FY23. Sequentially, the company's net profit surged by 17 per cent.

The company, where the Centre has 29.54 per cent stake, posted revenue from operations at Rs 7,067 crore, down 7.4 per cent as against Rs 7,628 crore in Q3 FY23. The total income recorded in Q3 FY24 was at Rs 7,606 crore, while total expenses was at Rs 4937 crore. 

The EBITDA (earnings before tax, depreciation and amortization dropped by 14 per cent to Rs 3,560 crore in Q3 as compared to Rs 3,717 crore in the same quarter last year.

In the first nine months till December 2023 of the FY24, the revenue from operations was Rs 21,383 crore, down 16 per cent YoY. The profit during this time period was Rs 5,721 crore, down 28 per cent on-year.

The company reported highest ever nine months’ mined metal & silver production, driving the attainment of industry leading CAGR and advancing towards achieving annual guidance. However, it reported lowest zinc cost of production in last 10 quarters at $1,095 per MT & 4th consecutive quarter of cost reduction.

The company said mined metal production for the quarter was 271 kt, up 8% sequentially and 7% y-o-y, driven by higher ore production at Rampura Agucha and Sindesar Khurd mines, further supplemented by improved mined metal grades year on year.

The company said as of December 31, 2023, the company’s gross investments and cash & cash equivalents were INR 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 of Dec’23 was Rs 10,111 Crore. During the quarter, the company paid a dividend of Rs 2,535 crore.

Arun Misra, CEO, said: “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 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."

Misra added that the company has been ranked the 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.

Shares of  Hindustan Zinc were trading at Rs 318.35, up by 2.10 per cent, at 2.20 PM.

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