Hindustan Zinc Ltd (HZL), part of the Vedanta group, reported a 34.5% rise in consolidated net profit for the second quarter ending September 30, 2024, reaching ₹2,327 crore, driven by higher income. This marks an increase from the ₹1,729 crore profit recorded in the same period last year.
Total revenue from operations for the quarter was INR 8,252 crore, marking a 22% year-on-year (y-o-y) increase due to higher metal and silver volumes, stronger zinc and silver prices, and a favorable dollar, though partially offset by lower lead prices. Quarter-on-quarter (q-o-q), revenue rose by 2%, driven by improved lead and silver volumes, despite lower zinc volumes and metal prices. For the first half of FY25, total revenue stood at INR 16,382 crore, up 16% y-o-y, primarily due to increased metal volumes and higher zinc and silver prices, supported by a strong dollar but somewhat offset by lower silver volumes and lead prices.
The cost of zinc production (excluding royalty) for the quarter was US$ 1,071 (INR 89,686) per MT, a 6% decrease y-o-y (5% in INR terms) due to higher production volumes, improved coal linkage availability, lower coal and input commodity prices, and operational efficiencies. It also declined 3% sequentially, reflecting similar factors. For H1 FY25, the zinc cost of production was US$ 1,089 (INR 91,034) per MT, a 7% y-o-y reduction (5% in INR terms), again driven by higher volumes, better grades, improved coal linkage, and operational efficiencies.
EBITDA for the quarter reached INR 4,164 crore, up 33% y-o-y and 6% q-o-q, while for H1 FY25, it was INR 8,109 crore, a 25% y-o-y increase in line with revenue and cost efficiency. Net profit before exceptional items for the quarter stood at INR 2,389 crore, a 38% y-o-y and 2% q-o-q increase, matching the EBITDA performance.
For H1 FY25, net profit before exceptional items was INR 4,734 crore, up 28% y-o-y. The company also holds a strategic hedging position of 99 kt of zinc and 83 MT of silver for expected production in the second half of FY25.
In a meeting held on Friday, the board approved an investment of ₹327 crore for a minimum 26% equity stake in Serentica Renewable India Private Ltd (SRIPL) or its affiliates. SRIPL was formed to implement renewable energy power projects to meet HZL’s long-term power needs under a power delivery agreement. SRIPL or its affiliates will establish captive power projects across the country to provide renewable energy to HZL.
Hindustan Zinc, a subsidiary of Vedanta Limited, is one of the world’s largest integrated producers of zinc, lead, and silver. With its headquarters in Udaipur, Rajasthan, the company is a key player in India’s mining industry and a global leader in sustainable mining practices.
Hindustan Zinc operates fully integrated mining and smelting operations, producing refined metals that are critical for industries such as infrastructure, automotive, and renewable energy. The company is committed to environmental stewardship, focusing on water conservation, energy efficiency, and reducing its carbon footprint, while also investing in community welfare and employee safety initiatives.
