Hindustan Zinc Q4 Results: Profit Declines 21%, But Meets Estimates

Hindustan Zinc Ltd. reported a fall in net profit for the fourth quarter of fiscal 2024, meeting analysts' estimates.

The metal producer's net profit declined 21% to Rs 2,038 crore in the January-March quarter, according to an exchange filing on Friday. This compares with a Rs 2,041-crore estimate by Bloomberg.

The company's revenue also tumbled 11% to Rs 7,549 crore during the period.

Hindustan Zinc Q4 FY24 Results (Consolidated, YoY)

• Revenue down 11% to Rs 7,549 crore (Bloomberg estimate: Rs 7,350 crore).

• Ebitda declined 14% to Rs 3,649 crore (Bloomberg estimate: Rs 3,632 crore).

• Ebitda margin at 48.3% vs 50% (Bloomberg estimate: 49.4%).

• Net profit down 21% at Rs 2,038 crore (Bloomberg estimate: Rs 2,041 crore).

Record Silver Production And Global Ranking

Hindustan Zinc reported record annual silver and metal production, with strong cost resilience amid lower zinc prices.

The company emerged as the third-largest producer of silver globally. Its Sindesar Khurd mine has advanced to become the second-largest silver mine in the world, improving its position from fourth place last year.

Renewable Energy Initiatives

In line with its commitment to sustainability, the company is progressing with a power delivery agreement for 450 MW of renewable energy, with the first flow of renewable energy expected to commence in April. This initiative aligns with HZL's efforts to reduce its carbon footprint and contribute to India's renewable energy goals.

Outlook For FY25

Looking ahead, Hindustan Zinc remains optimistic about its prospects for FY25, anticipating higher mined and refined metal production compared with the previous year.

With the ramp-up of major projects commissioned in the last year and improved capacity utilisation, the company expects mined metal production to be between 1,100-1,125 kt and refined metal production in the range of 1,075-1,100 kt.

Saleable silver production for FY25 is projected to be between 750-775 MT. Zinc cost of production is expected to range between $1,050-1,100 per MT.

Project capex for the year is estimated to be in the range of $270-325 million.

Hindustan Zinc shares were trading 2.1% lower at Rs 396.45 per share as of 3:14 p.m., as compared with a 0.7% gain in the NSE Nifty 50.