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- Clocked best-ever third quarter revenue of INR 8,614 crores, up 18% YoY, historic best third quarter EBITDA of INR 4,539 crores, up 28% YoY with 9 quarter best profit after tax (PAT) of INR 2,678 crores, up 32% YoY
- Amongst the top 3 largest metal companies in India with market cap of INR 1,88,000 crores
- Recognized as the world’s most sustainable metals & mining company for second consecutive year by S&P Global Corporate Sustainability Assessment 2024
Udaipur, January 28th, 2025: Hindustan Zinc Limited (NSE: HINDZINC, BSE: 500188), the world’s second largest integrated zinc producer and world’s third largest silver producer, reported its results for the third quarter and nine months ended December 31, 2024. The company recorded its highest-ever nine months mined and refined metal production at 784 kt and 783 kt respectively. The company clocked best-ever third quarter revenue of INR 8,614 crores, up 18% year-on-year. Hindustan Zinc also registered historic best third quarter EBITDA of INR 4,539 crores, up 28% with an industry leading EBITDA margin of c. 53%, up c. 400 bps year-on-year. During the quarter in question, the company also recorded its highest profit after tax (PAT) in the past nine quarters of INR 2,678 crores, up 32% year on year. Hindustan Zinc generated strong Free Cash Flow from operations (pre-capex) of INR 2,628 crores during the quarter along with the lowest cost of production (COP) in the last 15 quarters at $1,041/MT in Q3. Currently, Hindustan Zinc is one of the largest metal companies in India with market capitalization of INR 1,88,000 crores and total shareholder returns of c.INR 181/share (c.62%).
Commenting on Hindustan Zinc’s performance, Arun Misra, Chief Executive Officer, said: “Hindustan Zinc continues to execute its strategic priorities effectively while driving operational excellence with an emphasis on ESG and continuous improvement. As a result, we have achieved our highest-ever production of mined and refined metals over the past nine months. This demonstrates the underlying strength of our assets and consistent performance, all further supported by positive market trends.
Strengthening its position as a leader in the energy transition metals sector, I am proud to share that Hindustan Zinc has been recognized as world’s most sustainable metals and mining company for the second consecutive year by the S&P Global Corporate Sustainability Assessment 2024. This achievement highlights a fourth consecutive year of improvement in our overall score, underscoring our dedication to sustainability, fostering positive social impact, and ensuring governance excellence.”
Sandeep Modi, Chief Financial Officer, said: “Our commitment to operational excellence and cost management is yielding stronger financial results. Hindustan Zinc achieved its highest-ever third-quarter EBITDA and a 9-quarter best PAT. During this period, the company also recorded its lowest cost of production in last 15 quarters at $1,041 per tonne, positioning us well to reach a full-year cost of production at the lower end of our guidance range.
In line with the government’s initiative to empower the MSME sector, the company prioritized payments to MSME vendors, achieving an average payment cycle of 18 days—60% faster than the statutory requirement. This demonstrates our dedication to ESG principles and reinforces trust in our supply chain by promoting greater social responsibility. With a robust balance sheet, we are well-positioned to execute our growth strategy and create value for shareholders through sustained operational excellence and cost-cutting efforts.”
Financial Summary
(In INR Crores or as stated)
| Particulars | 3Q | 2Q | 9M | ||||||||||||||
| FY 2025 | FY 2024 | Change | FY 2025 | Change | FY 2025 | FY 2024 | Change | ||||||||||
| Sales1 | |||||||||||||||||
| Zinc | 5,628 | 4,502 | 25% | 5,078 | 11% | 16,031 | 13,203 | 21% | |||||||||
| Lead | 1,008 | 1,038 | -3% | 1,194 | -16% | 3,200 | 3,115 | 3% | |||||||||
| Silver | 1,465 | 1,413 | 4% | 1,550 | -5% | 4,442 | 4,008 | 11% | |||||||||
| Others | 513 | 357 | 44% | 430 | 19% | 1,323 | 1,057 | 25% | |||||||||
| Total | 8,614 | 7,310 | 18% | 8,252 | 4% | 24,996 | 21,383 | 17% | |||||||||
| EBITDA | 4,539 | 3,559 | 28% | 4,164 | 9% | 12,649 | 10,040 | 26% | |||||||||
| EBITDA Margin | 53% | 49% | – | 50% | – | 51% | 47% | – | |||||||||
| Profit After Taxes (after exceptional items) | 2,678 | 2,028 | 32% | 2,327 | 15% | 7,350 | 5,721 | 28% | |||||||||
| Earnings per Share2 | 6.34 | 4.80 | 32% | 5.51 | 15% | 17.40 | 13.54 | 28% | |||||||||
| Mined Metal Production (‘000 MT) | 265 | 271 | -2% | 256 | 3% | 784 | 780 | 1% | |||||||||
| Refined Metal Production (‘000 MT) | |||||||||||||||||
| Total Refined Metal (Zinc & Lead) | 259 | 259 | 0% | 262 | -1% | 783 | 760 | 3% | |||||||||
| Zinc | 204 | 203 | 0% | 198 | 3% | 613 | 597 | 3% | |||||||||
| Lead | 55 | 56 | -2% | 63 | -13% | 170 | 163 | 4% | |||||||||
| Silver3 (in MT) | 160 | 197 | -18% | 184 | -13% | 511 | 556 | -8% | |||||||||
| Wind Power (in million units) | 47 | 55 | -14% | 129 | -63% | 285 | 333 | -14% | |||||||||
| Refined Metal Sales (‘000 MT) | |||||||||||||||||
| Zinc | 201 | 203 | -1% | 198 | 2% | 609 | 596 | 2% | |||||||||
| Lead | 55 | 56 | -2% | 63 | -14% | 170 | 163 | 4% | |||||||||
| Silver (in MT) | 160 | 197 | -18% | 184 | -13% | 511 | 556 | -8% | |||||||||
| Zinc CoP (INR/MT)4 | 87,960 | 91,180 | -4% | 89,686 | -2% | 90,028 | 94,448 | -5% | |||||||||
| Zinc CoP ($/MT) 4 | 1,041 | 1,095 | -5% | 1,071 | -3% | 1,073 | 1,142 | -6% | |||||||||
| Zinc LME ($/MT) | 3,050 | 2,498 | 22% | 2,779 | 10% | 2,887 | 2,483 | 16% | |||||||||
| Lead LME ($/MT) | 2,007 | 2,123 | -5% | 2,044 | -2% | 2,071 | 2,137 | -3% | |||||||||
| Silver LBMA ($/oz.) | 31.4 | 23.2 | 35% | 29.4 | 7% | 29.9 | 23.6 | 27% | |||||||||
| USD-INR (average) | 84.46 | 83.25 | 1% | 83.76 | 1% | 83.88 | 82.70 | 1% | |||||||||
Note: all numbers reported are consolidated numbers unless otherwise mentioned
- Including other operating income
- INR, not annualised
- Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes
- Cost of production (CoP) wherever referred is excluding royalty
Operational Performance
- Record nine months Mined metal production at 784 kt, driven by improved mined metal grades and mill recovery.
- Highest ever nine months Refined metal production at 783 kt, up 3% YoY with better plant availability & operational parameters.
- Mine metal production in third quarter at 265 kt, up 3% QoQ driven by higher mined metal grades and increase in production at Agucha and Zawar mines.
- Refined metal production in third quarter at 259 kt, flat YoY and down marginally QoQ due to planned maintenance shutdown in 3Q.
Financial Performance
Revenue:
- Total revenue from operations during the quarter was INR 8,614 Crores, up 18% YoY driven by higher zinc and silver prices and strong dollar, marginally offset by lower metal and silver volumes and lead prices. It is up 4% QoQ in line with increased zinc volume, zinc and silver prices and a stronger dollar, partly offset by lower lead and silver volumes and lead prices.
- For the nine months, total revenue from operations stood at INR 24,996 Crores, up 17% YoY on account of highest ever metal volume, zinc & silver prices, and a stronger dollar, partly offset by lower silver volume and lead prices.
EBITDA:
- Recorded historic best third quarter EBITDA of INR 4,539 Crores, up 28% YoY driven by higher zinc and silver prices, lower cost of production due to higher linkages and renewable energy in FY25, higher acid realisation and stronger dollar. The EBITDA was up 9% QoQ in line with increased zinc and silver prices, higher zinc volume, lower cost of production and stronger dollar. The company recorded an Industry leading EBITDA margin of c.53%.
- For nine months, it stood at INR 12,649 Crores, up 26% YoY in line with record metal volume, lower cost of production, higher zinc and silver prices and stronger dollar. The company recorded a strong EBITDA margin of c.51%.
Profit after taxes (PAT):
- Profit after tax for the quarter stood at INR 2,678 Crores, up 32% YoY and 15% QoQ in line with the higher EBITDA.
- Profit after tax for the nine months stood at INR 7,350 Crores, up 28% YoY in line with the EBITDA.
Zinc Cost of Production (COP):
- Zinc COP for the quarter stood at US$ 1,041 (INR 87,960) per MT, lower by 5% (lower by 4% in INR terms) YoY on account of improved metal grades, better domestic coal availability, further supported by increased renewable energy, higher acid realisations, softened coal and input commodity prices and operational efficiencies year on year. It was lower by 3% (lower by 2% in INR terms) sequentially due to better acid realisations & higher metal grades.
- Zinc COP for the nine months was US$ 1,073 (INR 90,028) per MT, lower by 6% (lower by 5% in INR terms) YoY on account of record production volumes, better mined metal grades, increased domestic coal and renewable energy usage and acid realisations, further supported by softened coal and input commodity prices and operational efficiencies year on year.
Liquidity and Investment
- Delivered robust pre capex free cash flow from operations of INR 2,628 Crores for 3QFY25 (capex of INR 1,024 Crores including growth capex of INR 321 Crores) driven by higher EBITDA.
- For the nine months, pre capex free cash flow from operations was INR 9,664 Crores (capex of INR 3,029 Crores including growth capex of INR 929 Crores, and renewable energy investment of INR 230 Crores) in line with higher EBITDA and efficient working capital management.
- As on December 31, 2024, the company had healthy gross investments and cash, and cash equivalents of INR 8,153 Crores invested in high quality debt instruments. Total borrowings outstanding as on December 31, 2024, was INR 12,270 Crores. Net debt stood at INR 4,117 Crores as against INR 5,721 Crores as on September 30, 2024.
- Company has consistent credit rating of AAA credit from CRISIL, demonstrating the strength of the balance sheet.
ESG (Environment, Social and Governance)
- Ranked highest out of 248 companies in Metals & Mining Sector in the S&P Global Corporate Sustainability Assessment (CSA) 2024 with a score of 86/100, holding 1st position for the second consecutive year
- Integrated Annual Report 2023-24 ranked among the Top 50 worldwide at League of American Communications Professionals (LACP) Spotlight Awards 2024
- Became the first in metals & mining sector to publish the 4th edition of the Climate Action Report
- Honoured with Sustainability Excellence Award in the Manufacturing sector at the 2nd Annual Sustainability Symposium hosted by Indian Chamber of Commerce
- Rajpura Dariba Complex received Scope 1 Water Positive certification in line with NITI Aayog’s guidelines
- Signed an MoU with IIT Madras for development of 1 kWh rechargeable zinc-air battery prototype
- Established its First-ever Work-at-Height Women Rescue Team at Zawar
- Bagged 11 awards with Rampura Agucha men’s team emerging as champions in overall metal mines category at the 53rd All India Mine Rescue Competition
- All India Football Federation (AIFF) has awarded a 3-star rating to Zinc Football Academy in the Academy Accreditation 2024-25
- Our Sakhi from Kayad pickle unit was bestowed with the prestigious “Social Impact Leader” award at the Business World Disrupt Social Impact Summit, and another Sakhi was recognized by Bhilwara Police for supporting community women & children as a ‘Suraksha Sakhi’
- Ranked among India’s Top 50 Companies with Great Managers for 2024 by People Business Consulting
- Our management was recognized for exceptional leadership with 3 managers among Top 100 Great Managers of 2024 and ‘Best HR’ Award at the HR Leaders of India Awards 2024 by Indian Conventions
Earnings Call on Tuesday, January 28, 2025, at 17:45 hours (IST)
The Company will hold an earnings conference call on Tuesday, January 28, 2025, at 17:45 hours IST, where senior management will discuss the Company’s results and performance.
