Hindustan Zinc, a global leader in the production of zinc, lead, and silver, has announced its financial results for the third quarter ending December 31, 2023. The company reported a Profit After Tax (PAT) of INR 2,028 Crore (approximately $271.2 million), marking a 17% quarter-over-quarter increase, primarily driven by consistent volume growth and effective cost reduction strategies.
Operational and Financial Performance
- Mined Metal Production: The quarter saw a production of 271 kt, up by 8% sequentially and 7% year-over-year. This increase was attributed to higher ore production at the Rampura Agucha and Sindesar Khurd mines.
- Refined Metal Production: Refined metal production for the quarter stood at 259 kt, showing a 7% sequential increase and a year-over-year growth of 1%.
- Silver Production: Saleable silver production reached 197 MT, a 22% increase compared to the same period last year.
- Financial Highlights: Revenue from operations reached INR 7,310 Crore (approximately $976.1 million), an 8% increase from the previous quarter. EBITDA for the quarter was INR 3,559 Crore (approximately $474.7 million), up by 14% quarter-over-quarter.
Cost Efficiency and ESG Initiatives
- Zinc Production Costs: The cost of zinc production decreased to US$ 1,095 per MT, marking the lowest in the last ten quarters and a continuation of the cost reduction trend.
- Sustainability Rankings: Hindustan Zinc achieved the highest rank in the S&P Global Corporate Sustainability Assessment among 238 companies in the Metals & Mining sector, with a score of 85/100.
- Environmental Initiatives: The company has initiated the deployment of electric and LNG vehicles in its operations, aiming to reduce Scope 3 greenhouse gas emissions.
CEO and CFO Insights
Arun Misra, CEO, highlighted the company’s focus on operational excellence and sustainable practices, while CFO Sandeep Modi emphasized the importance of cost optimization and shareholder value maximization.
