Last Updated on January 20, 2024 by BFSLTeam BFSLTeam
Table of Content
Hindustan Zinc Results Key Highlights:
1. Global Recognition in Sustainability
Achieved the highest global ranking in the S&P Sustainability Assessment for the Metals and Mining sector.
2. Robust Quarterly Financial Performance:
Recorded sequential increases in Quarterly Revenue (8%), EBITDA (14%), and PAT (17%).
3. Silver Production Milestones:
Silver production reached 197 MT for Q3 FY24, marking a substantial 22% year-on-year growth.
4. Historical Production Achievements:
Attained the highest-ever nine months’ mined metal & silver production, contributing to industry-leading CAGR and progress towards achieving annual guidance.
5. Cost Efficiency and Operational Excellence:
- Achieved the lowest zinc cost of production in the last 10 quarters at US$ 1,095 per MT.
- Successfully implemented cost reduction strategies for the fourth consecutive quarter.
Additional Read: Q3 Results Dashboard
6. Operational Performance Overview:
- Mined metal production for the quarter increased by 8% sequentially and 7% y-o-y, driven by higher ore production at key mines.
- 9M FY24 mined metal production stood at 780 kt, reflecting a 2% y-o-y increase due to improved mined metal grades.
- Refined metal production for the quarter increased by 7% sequentially and 1% y-o-y, aligning with plant availability.
- 9M FY24 refined metal production reached 760 kt, maintaining a flat y-o-y trend.
- Integrated zinc production for the quarter rose by 10% sequentially, while refined lead production increased by 21% y-o-y.
- 9M FY24 integrated zinc production was marginally down y-o-y, and refined lead production witnessed a 4% y-o-y increase.
- Saleable silver production for the quarter and 9M FY24 reflected positive trends, up 9% q-o-q and 22% y-o-y for the quarter, and up 5% y-o-y for 9M FY24, aligned with lead metal production.
Financial Performance Overview:
- Qtr Revenue
INR 7,310 Crore (8% q-o-q increase) – boosted by better zinc & silver volumes, higher zinc prices, and favourable exchange rates; partly offset by lower lead prices and volumes.
- 9M FY24 Revenue
INR 21,383 Crore (16% y-o-y decrease) – impacted by lower zinc prices and volumes, strategic hedging, but partly offset by improved silver & lead volumes/prices, and favourable exchange rates.
- Zinc COP Qtr
US$ 1,095 (INR 91,180) per MT (4% q-o-q decrease) – attributed to better volume, softened coal prices, and operational efficiency; offset by lower acid realisation.
- EBITDA Qtr
INR 3,559 Crore (14% q-o-q increase, 4% y-o-y decrease) – aligned with revenue and cost dynamics.
- Net Profit Qtr
INR 2,028 Crore (17% sequential increase, 6% y-o-y decrease) – driven by higher EBITDA, partially offset by increased tax expense.
Additional Read: Hindustan Zinc Share Price
Projects Update:
- Operational Milestones: Fumer and alloy plant operational, with full ramp-up targeted in Q4 FY24.
- New Projects: Progress on track for the Roaster at Debari (160 ktpa) and Hindustan Zinc Fertilisers Private Limited (HZFPL) (510 ktpa).
ESG Update:
- Sustainability Ranking: Hindustan Zinc ranked highest in Metals & Mining Sector in the 2023 S&P Global Corporate Sustainability Assessment with a score of 85/100.
- Green Initiatives: Electric trucks for inter-unit transportation, LNG vehicles to reduce Scope 3 GHG emissions, and recognition for mine rescue teams.
Liquidity and Investment:
- Cash Flow Qtr: INR 2,097 Crore generated during the quarter.
- Investments: As of December 31, 2023, gross investments and cash & cash equivalents were INR 9,743 Crore.
- Borrowings: Total borrowings outstanding as of Dec’23 were INR 10,111 Crore.
- Dividend Payment: Dividend payment of INR 2,535 Crore made during the quarter.
Additional Read: Vedanta Share Price
About Hindustan Zinc
Hindustan Zinc, a key player in the Zinc-Lead and Silver industry, operates under the Vedanta Group and holds the distinction of being the world’s 2nd largest integrated Zinc producer and the 5th largest Silver producer. The company’s influence extends over approximately 80% of the growing Zinc market in India, with its headquarters situated in Udaipur. Its reach encompasses Zinc-Lead mines and smelting complexes strategically spread across the state of Rajasthan.
Hindustan Zinc stands out as a self-sufficient entity in power, boasting captive thermal power plants, and has embraced green energy initiatives through the establishment of wind power plants.
In 2023, Hindustan Zinc achieved top honours in the S&P Global Corporate Sustainability Assessment amongst Metals & Mining companies, underscoring its unwavering commitment to sustainable and responsible mining practices. The company has earned certification as a Water Positive entity, a rare distinction. Additionally, it garnered prestigious accolades at the S&P Global Platts Metal Award 2022, winning the ‘Industry Leadership Award – Base, Precious & Specialty Metals’ and the ‘Corporate Social Responsibility’ awards. Hindustan Zinc is the sole Indian mining company with validated SBTi targets aligned with the 1.5°C target.
Hindustan Zinc prides itself on exemplary people practices and employee-centric initiatives, earning accolades such as the ‘Great Place to Work 2023’ and ‘Company with Great Managers 2022’ by People Business. The company has also been honoured with the ‘People-first HR Excellence Award.’ With a substantial spend base of INR 276.3 crores in FY23, the company spearheads various community development initiatives, impacting 1.7 million people across 237 villages. This commitment positions Hindustan Zinc among the Top 10 CSR Companies in India.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.For Research Disclaimers Click Here: https://bit.ly/3Tcsfuc