More Stories

Informist, Friday, Apr. 25, 2025

By Ashutosh Pati

MUMBAI – Hindustan Zinc Ltd. Friday reported better than expected earnings for the March quarter due to higher volumes and high base metal prices. The company's net profit for the March quarter rose 46% on year to INR 29.76 billion, sharply higher than the INR 26.3 billion expected by the Street. The on-year growth in the company's net profit was the highest in 11 quarters.

Total revenue from operations for the quarter was INR 90.41 billion, up nearly 20% on year, and above the INR 86.66 billion expected by the Street. The on-year revenue growth for the quarter was the highest in the last 13 quarters. Sequentially, Hindustan Zinc's net profit was up over 12% and revenue rose over 5%.

For 2024-25 (Apr-Mar), the company reported a net profit of INR 102.8 billion, up nearly 32% from INR 77.9 billion a year ago. The company's revenue for FY25 was INR 339.7 billion, up over 17%.

The Vedanta group firm reported earnings before interest, tax, depreciation, and amortisation of INR 48.16 billion for the quarter, up 32% on year, on the back of record metal volume and cost reduction. Analysts had expected the company's EBITDA for the quarter to be INR 44.93 billion. The company reported an EBITDA margin of 53% for the March quarter. The company's operating margin for the reporting quarter stood at 42%, up from 36% a year ago.

In the March quarter, the company's total expenditure was INR 55.22 billion, up over 8% from INR 50.94 billion a year ago. Finance costs dropped over 4% to INR 2.51 billion from INR 2.62 billion a year ago. The mining royalty for the company for the quarter was up nearly 21% on year at INR 11.6 billion. Power and fuel expenses were at INR 6.72 billion, down over 1% from INR 6.80 billion a year ago. The company's tax outgo for the March quarter was INR 7.73 billion, up from INR 6.94 billion a year ago.

The company's debt-to-equity ratio for the March quarter was 0.8, up from 0.56 in the corresponding quarter last year. Revenues from the zinc, lead, and others segment was INR 71.18 billion, up over 20% on year. The company's silver metal segment reported revenue of INR 16.88 billion for the quarter, up 24% on year.

Hindustan Zinc said it expects its capital expenditure in FY26 to be $225 million-$250 million. The company expects the cost of production for zinc, pre-royalty, to be $1,025-$1,050 per tonne in FY26. It expects mined metal production of around 1.13 million tonnes, refined metal production of around 1.10 million tonnes, and production of silver at around 700-710 tonnes in FY26.

In an update earlier this month, Hindustan Zinc had reported 4% on-year and 17% on-quarter growth in mined metal production in the March quarter at 310,000 tonnes -- the highest ever quarterly mined metal production. For the financial year ended March, the company reported mined metal production of 1.10 million tonnes. For the same period, refined zinc production was 827,000 tonnes, up 1% from the previous year and lead production was up 4% at 225,000 tonnes.

On Friday, shares of Hindustan Zinc closed at INR 444 on the National Stock Exchange, down 3.3%.  End

US$1 = INR 85.45

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.