Hindustan Zinc’s profit surged to INR 2,345 Cr, up 19% y-o-y on the back of record first quarter metal production
“Recycling and Silver businesses to unlock significant value”
Key Highlights:
Clocked highest-ever first quarter mined and refined metal production
On track for 4-year lowest cost with an entry COP of $1,107/MT in Q1
Q1 EBITDA and PAT up y-o-y by 17% and 19% respectively (highest in last five quarters)
Launched Asia’s first low carbon ‘green’ zinc, EcoZen
Commencement of supply of RE power from Serentica 180 MW solar project in May 2024
Strategic focus on Zinc in batteries as a stronger alternative to lithium; Inked pact with US-based AEsir Technologies for developing next-gen zinc batteries
Shareholder returns of INR 387.35 per share including dividend, with doubling the market cap at c.US$ 34 billion
Launched India’s first AI-based Digital Integrated Report with GenAI chatbot “Zincky”
Chennai, August 02, 2024: Hindustan Zinc Limited (“HZL”), the leading global integrated producer of zinc, lead and silver, reported its results for the first quarter ended June 30, 2024. The company recorded the highest-ever first quarter mined and refined metal production. It is also on track for a 4-year lowest production cost with an entry COP of $1,107/MT in Q1. The Q1 EBITDA & PAT were up by 17% and 19% y-o-y respectively (highest in last five quarters). The company recently launched Asia’s first low carbon ‘green’ zinc, EcoZen and announced the commencement of renewable power supply from Serentica Renewables’ 180 MW solar project. Hindustan Zinc also inked a pact with US-based AEsir Technologies for developing next-gen zinc batteries as a stronger alternative to lithium. The company clocked shareholder returns of INR 387.35 per share including dividend, with a doubling of the market cap at c.US$ 34 billion. The company also launched India’s first AI-based Digital Integrated Report with GenAI chatbot ‘Zincky’.
Commenting on the performance, Mr. Arun Misra, CEO, said: “Hindustan Zinc has started the year on a strong note, recording highest ever first quarter mined and refined metal production, leveraging strong metal prices during the quarter. It also gives me immense pleasure to inform you that we have expedited the commencement of our renewable energy power delivery with the receipt of the first flow of RE power from Serentica 180 MW solar project in May 2024. Further, we are set to accelerate our sustainability journey through contribution towards economic prosperity & environmental responsibility, and diversification by catering to high-end sectors responsibly with our strategic partnerships for utilising waste streams for extracting saleable products and supplying for next-generation nickel zinc batteries.
Further expanding our zinc product portfolio in the world, we have launched Asia’s first low carbon ‘green’ zinc, EcoZen, produced using renewable energy and certified by a renowned global sustainability consulting firm for its life cycle carbon footprint assessment. It boasts a carbon footprint of less than 1 tCO2e per tonne of Zinc produced, about 75% lower than the global average. We strongly believe that we can create further value for the Company by ensuring creation of separate verticals for the recycling and silver businesses in the coming days.”
Mr. Sandeep Modi, CFO, said: “Ascertaining HZL’s global cost leadership, we have further optimized the cost of production for the quarter at $1,107 per tonne, clocking a figure lower than last three financial years. With a holistic focus on operational cum financial excellence, we expanded the margins during the quarter, along with a commendable increase in the domestic primary zinc market share. I firmly believe that HZL has made its shareholders proud by providing c.133% returns during the quarter, highest amongst the large Indian companies, by the virtue of its positioning as the largest integrated precious metal company, ESG leader and a company committed for energy transition metals.”
Hindustan Zinc Limited’s consolidated financial statements are detailed below, to be read along with the Company’s Investor Presentation, which is accessible at the end of this release.
Financial Summary Consolidated
INR. Crore or as stated
Particulars Q1 Q4
2025 2024 Change 2024 Change
Sales1
Zinc 5,325 4,668 14% 4,858 10%
Lead 998 961 4% 961 4%
Silver 1,427 1,298 10% 1,360 5%
Others 380 355 7% 370 3%
Total 8,130 7,282 12% 7,549 8%
EBITDA 3,946 3,359 17% 3,637 8%
Profit After Taxes 2,345 1,964 19% 2,038 15%
Earnings per Share 5.55 4.65 19% 4.82 15%
(INR, not annualised)
Mined Metal Production (‘000 MT) 263 257 2% 299 -12%
Refined Metal Production (‘000 MT)
Total Refined Metal
Zinc 211 209 1% 220 -4%
Saleable Lead 51 51 2% 53 -3%
Zinc & Lead 262 260 1% 273 -4%
Saleable Silver2 (in MT) 167 179 -7% 189 -12%
Wind Power (in million units) 108 121 -11% 61 78%
Refined Metal Sales
Zinc (kt) 211 208 1% 221 -5%
Lead (kt) 51 50 2% 53 -3%
Silver (MT) 167 179 -7% 189 -12%
Zinc CoP without Royalty (INR/MT) 92,375 98,103 -6% 87,284 6%
Zinc CoP without Royalty ($/MT) 1,107 1,194 -7% 1,051 5%
Zinc LME ($/MT) 2,833 2,526 12% 2,450 16%
Lead LME ($/MT) 2,167 2,117 2% 2,077 4%
Silver LBMA ($/oz.) 28.8 24.1 20% 23.3 24%
USD-INR (average) 83.42 82.16 2% 83.04 0%
(1) Including other operating income
(2) Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes.
Operational Performance
Mined metal production for the quarter was 263 kt, recording the highest ever first quarter production. It is up 2% y-o-y on account of improved mined metal grades, and lower 12% q-o-q in line with mine preparation activities being carried out every year in first quarter.
Refined metal production recorded the highest ever first quarter production at 262 kt, up 1% y-o-y. It is down 4% sequentially in line with the plant availability & pyro operations on lead mode from June 2024. Refined zinc production for the quarter was 211 kt, up 1% y-o-y & down 4% q-o-q.
Saleable silver production for the quarter was 167 MT, down 7% y-o-y and 12% q-o-q in line with lead metal production and WIP built up in the normal course of the business, on account of pyro operations being run on lead mode from June 2024. This WIP will be liquidated in the subsequent period.
Financial Performance
Revenue from operations during the quarter was INR 8,130 Crore, up 12% y-o-y on account of better metal volume and metal & silver prices, further supported by a strong dollar and partly offset by lower silver volume. It is up 8% q-o-q on account of better metal & silver prices and favourable forex rates, partly offset by lower metal & silver volumes.
Zinc cost of production before royalty (COP) for the quarter stood at US$ 1,107 (INR 92,375) per MT, lower by 7% (lower by 6% in INR terms) y-o-y on account of softened coal and input commodity prices, better linkage coal availability and better mined metal grades, further supported by operational efficiencies year on year. It was up 5% (up by 6% in INR terms) sequentially in line with volume and grade.
EBITDA for the quarter was INR 3,946 Crore, up 17% y-o-y and 8% q-o-q in line with the revenue from operations and the cost of production.
Net profit for the quarter stood at INR 2,345 Crore, up 19% y-o-y and 15% sequentially due to higher EBITDA partly offset by higher tax expense.
As part of strategic hedging, Company has sold forward 90 kt of zinc production for FY25.
Projects Update
• Progress for the new 160 ktpa Roaster at Debari and the 510 ktpa Hindustan Zinc Fertilisers Private Limited (HZFPL) project is on track with final commissioning targeted by Q4 FY25 and Q2 FY26 respectively
• Consent to operate (CTO) is received for Bamnia Kalan Mines and site work is under progress
ESG Update
• Hindustan Zinc advanced the commencement of the first flow of RE power from Serentica 180 MW solar project to May 2024
• HZL launched Asia’s first low carbon ‘green’ zinc, EcoZen, using renewable energy, boasting a carbon footprint of less than 1 tCO2e, about 75% lower than the global average
• The Company signed an MoU with VEXL Environ Projects to establish a pilot plant for utilizing waste streams like jarosite and jarofix to recover metals/chemicals as saleable products
• Hindustan Zinc entered into a partnership with AEsir Technologies to innovate the battery storage space through Nickel Zinc batteries, supporting the global energy transition
• HZL launched its first TNFD Report (Taskforce on Nature-related Financial Disclosures) and India’s first AI-based Digital Annual Report, along with the 5th Integrated Annual Report & 7th Tax Transparency Report for FY 2023-24
• Hindustan Zinc got included in the top 500 sustainable companies list for 2024 by TIME’s magazine
• The Company trained India’s 2nd All Women Underground Mine Rescue Team at Rampura Agucha
Robust Free Cash Flow Generation
The Company has a robust free cash flow from operations of INR 3,432 Crore pre capex of INR 1,000 Crore (including growth capex of INR 291 Crore) and RE power investment of INR 230 Crore for Q1 FY25 contributing to a healthy balance sheet with AAA credit rating.
