Hindustan Zinc profit zooms 47% in March quarter

Synopsis

Hindustan Zinc's Q4 profit surged 47% to ₹3,003 crore, driven by higher zinc prices, lower input costs, and increased by-product sales. FY25 saw a 33% profit increase to ₹10,353 crore, with revenue up 18% to ₹34,083 crore. The company anticipates mined metal production of 1.12 million tonnes in FY26 and will invest $200-250 million in growth capex.

Hindustan Zinc's consolidated profit surged 47% on year to '3,003 crore to a new record for the fiscal fourth quarter, aided by higher prices of zinc sold, softer input costs and higher sales of by-products.

Total income from operations at the Anil Agarwal-owned company rose 20% to 9,087 crore during the quarter, while the earnings before interest, tax, depreciation and amortisation (Ebitda) climbed nearly a third at '4,816 crore.

The Ebitda margin, or operational profitability, for the March quarter stood at 53%, up 500 basis points compared with the previous year. One basis point is a hundredth of a percentage point.

"This year marks another milestone in Hindustan Zinc's legacy of financial excellence, as we delivered our best-ever fourth-quarter profit after tax and recorded our second highest revenue and Ebitda for the full year, driven by driven by structural cost reductions initiatives reflected by the 4-year lowest cost of production, operational excellence, and a deep-rooted commitment to sustainability," chief financial officer Sandeep Modi was cited as saying in a statement.

In FY25, the Vedanta group company's consolidated profit rose a third to '10,353 crore, while revenue was 18% higher at '34,083 crore. Ebitda for the year rose 28% to '17,465 crore, while Ebitda margins were 51%, an improvement of 400 basis points compared with the previous year.

For FY25, Hindustan Zinc has guided for mined metal production of 1.12 million tonne, and saleable silver production in the range of 700-710 tonne. This compares with a mined metal production of 1.09 million tonne, and silver production of 687 tonnes in FY25.

Hindustan Zinc will invest the equivalent of $200-250 million as growth capex this year, and sees the cost of production for zinc at $1,025-1,050 per tonne. In the last fiscal, the cost of production for zinc was $1,052 per tonne, down 6% on year.

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