Hindustan Zinc Q3FY25 Results: Net Profit Soars 32%, Revenue Up 18%

Hindustan Zinc, a subsidiary of the Vedanta Group, reported a 32% increase in net profit for the third quarter of FY25, driven by lower costs and higher metal prices.

Strong Financial Performance

The company’s net profit rose to ₹2,678 crore, compared to ₹2,028 crore in the same quarter last year. Revenue from operations grew 18% year-on-year to ₹8,315 crore. Zinc LME prices saw a 22% increase, while the cost of zinc production declined 5% in dollar terms.

Production and Expansion Plans

Total refined zinc and lead production remained flat at 259 KT. Hindustan Zinc expects to spend ₹1,500-1,600 crore in capital expenditure for FY25. The company’s net debt is projected to decline from ₹5,700 crore in September 2024 to ₹2,300 crore by March 2025. Looking ahead, Hindustan Zinc is exploring a capacity expansion to 2 million tonnes, which requires board approval and an estimated investment of $2-2.5 billion over the next 3-5 years.

Business Demerger and Critical Minerals

The company is awaiting government approval for its proposed business demerger, but no timeline has been set. In the meantime, Hindustan Zinc is focusing on its critical minerals division. A recently won tungsten block in Tamil Nadu was scrapped due to local protests.

Positive Future Outlook

With strong fundamentals, Hindustan Zinc expects to deliver solid results in the fourth quarter and aims to achieve over 1.2 million tonnes of production next year. The company is also set to commission its roaster plant in Q4FY25.

About Hindustan Zinc

Founded in 1966, Hindustan Zinc is the world’s second-largest integrated zinc producer and the 3rd-largest silver producer globally, with an annual capacity of 800 metric tonnes. The company holds approximately 75% market share in India’s expanding zinc industry. Headquartered in Zinc City, Udaipur, Hindustan Zinc operates zinc-lead mines and smelting facilities across Rajasthan.

As of 10:54 AM on January 29, Hindustan Zinc share price is trading at ₹430.50, down 0.62%. The stock opened at ₹440.00, reaching a high of ₹444.95 and a low of ₹430.00. The company’s market capitalisation stands at ₹1.82 lakh crore, with a P/E ratio of 20.84 and a dividend yield of 8.13%. Over the past 52 weeks, the stock has touched a high of ₹807.70 and a low of ₹284.60.

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