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Informist, Friday, Jul. 18, 2025

By Afra Abubacker

NEW DELHI – Hindustan Zinc Ltd.'s net profit for the June quarter fell 6.5% on year to INR 22.04 billion, owing to lower volumes and a fall in zinc and lead prices. The Vedanta Group company's net profit declined for the first time in five quarters but was still higher than the Street's expectation of INR 20.96 billion.

Hindustan Zinc's total revenue from operations for the quarter was INR 77.23 billion, down 5% on year, but marginally higher than INR 77.12 billion expected by the Street. Sequentially, the company's net profit declined 26% and revenue fell 14.6%.

The Vedanta group company reported earnings before interest, tax, depreciation, and amortisation of INR 38.60 billion for the quarter, down 2% on year. Analysts had expected the company's EBITDA for the quarter to be INR 37.65 billion. The company reported an EBITDA margin of 50% for the June quarter, up from 49% a year ago. EBITA fell as lower zinc and lead prices were only partly offset by higher silver prices, a stronger dollar, and lower production costs, the company said in a press release. Hindustan Zinc is one of the largest producers of zinc and silver globally.

The company's finance costs dropped 6.6% to INR 2.39 billion from INR 2.56 billion a year ago. Its zinc production cost fell 9% on year to $1,010 per tonne, the lowest for the June quarter since the company's underground transition. The reduction was driven by better metal grades, higher domestic coal and renewable energy use, and softer input costs, the company said. 

The revenue from the company's zinc, lead, and other segment for the June quarter was INR 61.16 billion, down from INR 64.21 billion a year ago. The silver metal segment reported a consolidated revenue of INR 14.27 billion for the quarter, flat on year. The company expects zinc and lead prices to stay resilient despite some expected surplus.

The company's overall mined metal production rose 1% on year to a record 265,000 tonnes during the quarter. "Delivering our highest-ever first-quarter mined metal production at the lowest-ever zinc cost of production reflects our relentless focus on operational efficiencies and cost leadership," Hindustan Zinc Chief Executive Officer Arun Misra said in the release.

For the June quarter, the company's total expenditure was INR 50.57 billion, down 4.2% from INR 52.78 billion a year ago. The mining royalty for the quarter fell nearly 6% on year to INR 9.09 billion. Power and fuel expenses were at INR 6.31 billion, down nearly 5% from INR 6.63 billion a year ago. The company's tax outgo for the June quarter was INR 7.44 billion, down nearly 4% on year.

The company's debt-to-equity ratio for the June quarter was 1.2 times, up from 0.84 times a year ago. As of Jun. 30, the company held cash and investments worth INR 93.40 billion, while its outstanding borrowings stood at INR 135.24 billion. The company declared an interim dividend of INR 10 per share.

Hindustan Zinc said multiple expansion projects are underway and it expects to commission a 160,000 tonne-per-annum roaster at Debari in Rajasthan and complete cellhouse debottlenecking at its Dariba and Chanderiya smelters in the state by the September quarter. The roaster will enable Hindustan Zinc to attain long-term sustainable operations, making it future-ready for over 1.2 million tonnes per annum of refined metal, the company said. 

The company also aims to commission a 510,000 tonne-per-annum fertiliser plant at Chanderiya by the June quarter next year to produce di-ammonium phosphate fertiliser and a hot acid leaching plant for silver and lead recovery at Dariba by the end of the current financial year.

In June, the board approved an investment of INR 120.00 billion for a 250,000 tonne-per-annum integrated refined metal expansion along with matching mine and mill capacity. The company's aim is to double growth in line with rising zinc demand by 2030. Friday, shares of Hindustan Zinc closed 0.4% lower at INR 435.50 on the National Stock Exchange.  End

Edited by Rajeev Pai

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