Hindustan Zinc Shines: Q2 Net Profit Soars 14%, Revenue Grows Amidst Strong Operational Performance

Hindustan Zinc Limited, a prominent Vedanta Group company and India’s largest integrated zinc producer, has announced a stellar performance for the second quarter of the fiscal year. The mining major reported a significant 14% year-on-year increase in its net profit, reaching an impressive Rs 2,649 crore for the quarter ended September 30, 2023.

This robust growth underscores the company’s resilience and strategic operational efficiency in a dynamic market environment.

The company’s revenue from operations also saw a healthy uptick, climbing 4% year-on-year. This positive trajectory in top-line growth complements the impressive profit figures, showcasing balanced financial health and the ability to drive value creation despite varying market conditions.

Delving deeper into the operational metrics, Hindustan Zinc’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) registered an even more remarkable increase, surging by 19% year-on-year to Rs 4,960 crore.

This significant boost in operational profitability is a testament to the company's stringent cost controls and enhanced productivity initiatives. However, the Zinc Cost of Production (CoP) before royalty saw a modest increase of 5% year-on-year, reaching $1,192 per tonne for the quarter.

Production figures for the quarter were equally encouraging.

Integrated metal production saw a 3% year-on-year increase, reflecting steady operational output. Specifically, integrated lead production grew by 8% year-on-year, while integrated silver production demonstrated a solid 5% year-on-year rise. These figures underscore the company's consistent efforts in optimizing its mining and refining processes to meet market demand effectively.

Looking ahead, Hindustan Zinc has outlined an optimistic outlook for the full financial year 2024.

The company expects integrated metal production to be in the range of 1,075-1,100 kt and refined silver production to be between 800-820 MT. Furthermore, the Zinc Cost of Production (CoP) for FY24 is projected to be in the range of $1,125-1,175 per tonne. These targets reflect the company's confidence in its operational capabilities and its commitment to delivering sustained growth and shareholder value.

Overall, Hindustan Zinc's Q2 performance paints a picture of strong financial health and operational excellence, positioning it well for continued success in the global metals market.