Hindustan Zinc Q2 PAT climbs 35% YoY to Rs 2,327 cr

Total revenue from operations during the quarter was Rs 8,252 crore, up 22% YoY on account of better metal & silver volumes and zinc & silver prices, further supported by a strong dollar and marginally offset by lower lead prices.

Profit before exceptional items and tax grew by 39.39% YoY to Rs 3,213 crore in the quarter ended 30 September 2024. The company reported exceptional loss of Rs 83 crore in Q2 FY25.

During the quarter, EBITDA stood at Rs 4,164 crore, registering the growth of 33% as compared with Rs 3,122 crore posted in corresponding quarter last year.

Zinc cost of production before royalty (COP) for the quarter stood at $ 1,071 (Rs 89,686) per MT, lower by 6% (lower by 5% in Rs terms) y-o-y on account of higher volume, better linkage coal availability, further supported by softened coal and input commodity prices and operational efficiencies year on year.

Mined metal production for the quarter was 256kt, up 2% YoY on account of higher ore production at Zawar Mine, which was partly offset by lower mined metal grade at SK Mine.

In Q2 FY25, Refined metal production stood at 262 kt, up 8% YoY. Refined zinc production for the quarter was 198 kt, up 7% YoY. Saleable silver production was 184 MT, up 2% YoY during the period under review.

On half-year basis, the company's consolidated net profit jumped 26.50% to Rs 4,672 crore in H1 FY25 as against to Rs 3,693 crore posted in H1 FY24. The revenue from operations increased 16% YoY to Rs 16,382 crore in H1 FY25.

Arun Misra, CEO, said: 'Hindustan Zinc has continued to gather momentum from its previous quarter to record historic highs in its second quarter mined and refined metal production. Leveraging strong precious metal prices, we have focused on maximizing our silver production through pyro operations on lead mode, resulting in a 10% sequential increment in silver volumes.

To advance our net zero commitment, the Board approved the third round-the-clock renewable energy (RE) delivery agreement with Serentica for 530 MW, totalling RE power contribution to over 70% of the total power requirement. With an objective to expand zinc applications, we have also signed an MoU with JNCASR, a premier institute sponsored by the Department of Science and Technology, for development work on next-gen zinc-based batteries.

The quarter also witnessed multiple recognitions for HZL's commitment towards safety, across prestigious platforms like British Safety Council and All India Mine Safety Awards, with our first allwomen underground mine rescue team being recognized as world's second-best women's task force.'

Sandeep Modi, chief financial officer, said, 'During the quarter, Hindustan Zinc recorded a 6-quarter highest EBITDA and PAT before exceptional items with a strong operational performance, supported by favourable market conditions. Substantiating its drive towards continuing operational excellence and global cost leadership, HZL recorded a significant cost reduction of 7% y-o-y in the first half of the fiscal year, clocking a cost of production of $1,071 per tonne for the quarter. The execution of third renewable power delivery agreement will further support the cost reduction and its predictability. The Company also registered an 8-quarter highest EBITDA margin during the quarter, which clocked over 50% with a 450 bps y-o-y improvement.'

Meanwhile, the company's board approved an investment of a minimum 26% of equity in Serentica Renewable India (SRIPL) or its affiliates to secure renewable energy (RE) under a Group captive power set up, SRIPL or its affiliates will create captive power projects in different parts of India as per location suitability and provide renewable power to the company on a long‐ term basis.

Cash consideration for Minimum 26% equity stake and per unit electricity tariff will be paid by the Company to SRIPL and the said project will be commissioned in phased manner by June 2027.

Hindustan Zinc, a Vedanta Group company, is an integrated producer of zinc, lead and silver. As of September 2024, Vedanta held 63.42% stake in the company.

The scrip shed 0.09% to settle at Rs 507.50 on the BSE.

Powered by Capital Market - Live News