Hindustan Zinc Reports Mixed Production and Financial Results

Hindustan Zinc, an integrated producer of zinc, lead, and silver under the Vedanta Group, reported its production and financial results for the first quarter of FY25. The company noted that mined metal production aligned with annual mine preparation activities, resulting in a 12% quarter-on-quarter (QoQ) decrease.

Refined metal production reached 262,000 tonnes, showing a 1% year-on-year (YoY) increase but a 4% sequential decline due to plant availability and the transition to pyro operations in lead mode during the latter part of the quarter. Specifically, refined zinc production stood at 211,000 tonnes, up 1% YoY but down 4% QoQ, while refined lead production was 51,000 tonnes, up 2% YoY and down 3% QoQ.

Saleable silver production dropped by 7% YoY to 167 tonnes, reflecting changes in lead metal production and work-in-progress (WIP) buildup as the company shifted to pyro operations on lead mode from June 24. This WIP is expected to be liquidated in subsequent periods.

In terms of renewable energy, wind power generation for Q1 FY25 was 108 million units, marking a 78% YoY increase but an 11% QoQ decrease, influenced by wind velocity and seasonal factors.

Financially, Hindustan Zinc saw a consolidated net profit decline of 21.09% to Rs 2,038 crore, with a 12.02% drop in revenue from operations to Rs 7,285 crore in Q4 FY24 compared to Q4 FY23. The company's stock fell 0.04%, trading at Rs 652.05 on the BSE.As of March 2024, Vedanta holds a 64.92% stake in Hindustan Zinc.