Hindustan Zinc Reports Record Q1 Production of 263 kt and Revenue of ₹8,130 Crore

On August 02, 2024, Hindustan Zinc Limited (HZL), a top global producer of zinc, lead, and silver, released its financial results for the first quarter ending June 30, 2024.

In the first quarter, Hindustan Zinc achieved its highest-ever mined metal production at 263,000 tonnes (kt), a 2% increase from the previous year. However, it was down 12% from the previous quarter due to seasonal mine preparation activities.

The company also reached its highest-ever refined metal production for the first quarter, 262 kt, up 1% year-over-year but down 4% sequentially because of plant maintenance and switching to lead production from June 2024. Refined zinc production was 211 kt, a 1% increase year-over-year but a 4% decrease from the last quarter.

Saleable silver production was 167 metric tonnes (MT), down 7% from the previous year and 12% from the last quarter. This decrease was due to lead metal production and work-in-progress (WIP) buildup from running operations in lead mode starting June 2024. This WIP is expected to be cleared in the coming period.

For the quarter, Hindustan Zinc’s revenue was ₹8,130 crore, a 12% increase from last year due to higher metal and silver prices and a strong dollar despite lower silver volume. Revenue was also up 8% from the previous quarter because of improved metal and silver prices and favourable forex rates, even though metal and silver volumes were lower.

Before royalty, the cost of producing zinc was US$1,107 ( ₹92,375) per tonne. This was 7% lower year-over-year (6% lower in ₹ terms) due to reduced coal and input prices, better coal availability, improved mined metal grades, and operational efficiencies. However, costs were up 5% sequentially (6% in ₹ terms) due to changes in volume and grade.

EBITDA for the quarter was ₹3,946 crore, up 17% from last year and 8% from the previous quarter, reflecting the increase in revenue and controlled production costs. Net profit for the quarter was ₹2,345 crore, a 19% increase year-over-year and a 15% rise sequentially, thanks to higher EBITDA, though higher taxes partially offset this.

Additionally, the company has hedged 90,000 tonnes of zinc production for FY25 as part of its strategic planning.

On August 02, 2024, Hindustan Zinc Ltd’s share price opened at ₹640.00 and closed at ₹651.40 on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.