Hindustan Zinc Reports Strong Q1 FY25 Results with Record Production and Profit Growth

Hindustan Zinc, a leading integrated producer of zinc, lead, and silver under the Vedanta Group, has reported robust financial and operational performance for the first quarter of FY25, ending in June 2024. The company's revenue from operations rose by 12% year-over-year to ₹8,130 crore, driven by increased metal volume and higher metal and silver prices, supported by a strong dollar. This was partially offset by lower silver volume.

Profit before tax (PBT) increased by 19.31% year-over-year to ₹3,114 crore during the quarter. The company's EBITDA reached ₹3,946 crore, marking a growth of 17% compared to ₹3,359 crore in the same quarter last year.

The cost of production (COP) for zinc before royalty was US$1,107 (₹92,375) per metric ton, a 7% decrease year-over-year (6% in INR terms). This reduction was due to softened coal and input commodity prices, improved coal availability, better mined metal grades, and enhanced operational efficiencies.

Mined metal production increased by 2% year-over-year to 263 kt, driven by improved mined metal grades. Refined metal production rose by 1% to 262 kt, with refined zinc production at 211 kt, up 1% year-over-year but down 4% quarter-over-quarter. Saleable silver production for the quarter was 167 metric tons, a decrease of 7% year-over-year and 12% quarter-over-quarter, attributed to lead metal production and work-in-progress build-up during pyro operations focused on lead mode since June 2024. This inventory will be addressed in subsequent periods.

Arun Misra, CEO of Hindustan Zinc, commented, "Hindustan Zinc has started the year on a strong note, recording the highest ever first-quarter mined and refined metal production, leveraging strong metal prices during the quarter. We have expedited the commencement of our renewable energy power delivery with the receipt of the first flow of renewable energy power from Serentica's 180 MW solar project in May 2024."

Misra also highlighted the launch of Asia's first low-carbon 'green' zinc, EcoZen, produced using renewable energy and certified for its life cycle carbon footprint assessment. EcoZen boasts a carbon footprint of less than 1 tCO2e per tonne of zinc produced, approximately 75% lower than the global average. Hindustan Zinc plans to create separate verticals for its recycling and silver businesses to further enhance value.

As of June 2024, Vedanta holds a 64.92% stake in Hindustan Zinc.