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Hindustan Zinc announced Q1FY25 results:
Financial Highlights:
- Revenue from operations during the quarter was Rs 8,130 crore, up 12% YoY on account of better metal volume and metal & silver prices, further supported by a strong dollar and partly offset by lower silver volume. It is up 8% QoQ on account of better metal & silver prices and favourable forex rates, partly offset by lower metal & silver volumes.
- Zinc cost of production before royalty (COP) for the quarter stood at USD 1,107 (INR 92,375) per MT, lower by 7% (lower by 6% in Rs terms) YoY on account of softened coal and input commodity prices, better linkage coal availability and better mined metal grades, further supported by operational efficiencies year on year. It was up 5% (up by 6% in Rs terms) sequentially in line with volume and grade.
- EBITDA for the quarter was Rs 3,946 crore, up 17% YoY and 8% QoQ in line with the revenue from operations and the cost of production.
- Net profit for the quarter stood at Rs 2,345 crore, up 19% YoY and 15% sequentially due to higher EBITDA partly offset by higher tax expense.
- As part of strategic hedging, Company has sold forward 90 kt of zinc production for FY25.
Operational Highlights:
- Mined metal production for the quarter was 263 kt, recording the highest ever first quarter production. It is up 2% YoY on account of improved mined metal grades, and lower 12% QoQ in line with mine preparation activities being carried out every year in first quarter.
- Refined metal production recorded the highest ever first quarter production at 262 kt, up 1% YoY. It is down 4% sequentially in line with the plant availability & pyro operations on lead mode from June 2024. Refined zinc production for the quarter was 211 kt, up 1% YoY & down 4% QoQ.
- Saleable silver production for the quarter was 167 MT, down 7% YoY and 12% QoQ 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.
Commenting on the performance, Arun Misra, CEO, 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.
Further expanding our zinc product portfolio in the world, we have launched Asia’s first low carbon ‘green’ zinc, EcoZen, produced using renewable energy and certified by a renowned global sustainability consulting firm for its life cycle carbon footprint assessment. It boasts a carbon footprint of less than 1 tCO2e per tonne of Zinc produced, about 75% lower than the global average. We strongly believe that we can create further value for the Company by ensuring creation of separate verticals for the recycling and silver businesses in the coming days.”
Sandeep Modi, CFO, said: “Ascertaining HZL’s global cost leadership, we have supressed the cost of production for the quarter at USD 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. I firmly believe that HZL has made its shareholders proud by providing c.133% returns during the quarter, highest amongst the large Indian companies, by the virtue of its positioning as the largest integrated precious metal company, ESG leader and a company committed for energy transition metals.”
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