- Hindustan Zinc's Q3 net profit rose 48% to Rs 3,916 crore sequentially
- Consolidated revenue hit a record Rs 10,980 crore, up 28% from Q2
- Ebitda increased 36% to Rs 6,054 crore with margin expanding to 55.1%
Hindustan Zinc Ltd. reported a sharp expansion in net profit and operating margin in the third quarter of the current financial year amid a boom in silver prices and demand.
Consolidated revenue from operations jumped 28% sequentially to the highest-ever quarterly income of Rs 10,980 crore in the October-December quarter, according to a stock exchange filing on Monday. Net profit jumped 48% to Rs 3,916 crore from Rs 2,649 crore in the preceding quarter.
Operating income, denoted under earnings before interest, tax, depreciation and amortisation (Ebitda), increased by 36% to Rs 6,054 crore. Ebitda margin expanded to 55.1% from 52% in the second quarter.
Revenue from zinc, lead and others segment jumped 21% to Rs 7,932 crore and silver increased 57% to Rs 2,676 crore. Silver production jumped 10% to 158 metric tonnes, contributing 44% to profits. "As silver shines globally, HZL is uniquely positioned to capture the upcycle. Significant value unlock potential exists, as the current rally's impact is yet to be fully reflected," a statement said.
The company had achieved its best ever third quarter mined metal production at 2,76,000 tonnes driven mainly by higher ore production.
Also read: Hindustan Zinc: Jefferies Initiates Buy Call Backed By Silver Play — Check Target Price
"The quarter marked a record performance, reflecting operational excellence and strong fundamentals," said Chief Executive Officer Arun Misra. "With debottlenecking projects completed, 2x growth projects underway, and strategic diversification into critical metals, we remain firmly positioned at the forefront of global energy transition," he added.
Vedanta Group firm Hindustan Zinc is the world's largest integrated zinc producer and amongst the top five silver producers globally. The company supplies to more than 40 countries and holds a market share of about 77% of the primary zinc market in the country.
Shares settled 3.7% higher at Rs 660.85 on the BSE, after the results, compared to a 0.4% decline in the benchmark Sensex. The stock is up 44% in the last 12 months.
Also Read: Q3 Result Live Updates
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