Hindustan Zinc Ltd Share Price – NSE  /  BSE

Non Ferrous Metals, Mid Cap

Hindustan Zinc has appointed Pallavi Joshi Bakhru (DIN: 01526618) as Additional Non-Executive Woman Independent Director on the Board of the Company for a period of 2 years effective 10 August 2023.

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Hindustan Zinc announced the cessation of Anjani Agrawal as Independent Director on the Board of the Company with effect from 31 July 2023.

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Hindustan Zinc announced that the 57th Annual General Meeting (AGM) of the company will be held on 24 August 2023.

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On quarter on quarter (QoQ) basis, the firm's net profit fell 24% in Q1 FY24 from Rs 2,583 reported in Q4 FY23. The decline in the net profit was primarily driven by lower EBITDA partly offset by lower tax expense.

Revenue from operations during the quarter was Rs 7,282 crore, down 22.4% year on year (YoY) on account of lower zinc & lead LME, lower lead volumes and differential strategic hedging impact partly offset by higher zinc and silver volumes, improved silver prices and favourable exchange rates.

Sequentially, revenue was down by 14.4% on account of lower zinc LME, lower metal & silver volumes partly offset by improved silver prices.

Zinc cost of production before royalty (COP) for the quarter was $1,194 (Rs 98,103) per million tonnes (MT), lower by 5.6% (0.7% higher in Rs terms) YoY and lower by 1.7% (1.7% lower in Rs terms) sequentially. Cost improvement is majorly on account of softened coal and input commodity prices, better domestic coal (linkage) availability, further supported by better grades and operational efficiencies year on year.

EBITDA for the quarter was at Rs 3,359 crore, registering a decline of 36.4% YoY and 20.2% QoQ, mainly on account of lower zinc & lead LME partly offset by lower costs and better silver prices.

On the operational front, the company highest-ever first quarter mined metal production at 257 kt, an increase of 2.1% YoY on account of higher ore production largely at Rampura Agucha & Kayad mines supported by improved mined metal grades and better mill recovery. In line with mine preparation activities being carried out every year in first quarter, MIC production was 14.6% lower sequentially.

Refined metal production stood at 260 kt for the quarter, was flat on YoY basis and down 4% sequentially in line with plant availability.

Integrated zinc production was 209 kt, up 1.4% YoY and down 2.9% sequentially. Integrated lead production for the quarter was down 5.7% YoY and 6.3% sequentially at 51 kt, in line with plant availability.

Saleable silver production was 179 MT in Q1 FY24, up 1.2% YoY and down 1.6% QoQ in line with lead metal production and higher WIP depletion.

As on 30 June 2023, the company's consolidated gross investments and cash & cash equivalents were Rs 9,709 crore as compared to Rs 10,061 crore at the end of March 2023 which was invested in high quality debt instruments. Total borrowings outstanding as on June 2023 was Rs 9,330 crore.

With respect to outlook for FY24, Hindustan Zinc said that both mined metal and refined metal production in FY24 is expected to be higher than last year. Mined metal is expected to be between 1,075-1,100 kt & refined metal production in the range of 1,050-1,075 kt. FY24 saleable silver production is projected to be between 725-750 MT.

Zinc cost of production in FY24 is expected to be in between $1,125-1,175 per MT. Project capex for the year is expected to be in the range of $175-200 million, it added.

Arun Misra, CEO, said, “We strongly believe that in a cyclical commodity business, protecting margins is fundamental, hence our strong focus lies on optimising cost and enhancing volumes. Our strategic development projects are also progressing well and now on track, while we continue to progress on our sustainability journey towards net-zero by 2050.”

Sandeep Modi, CFO, said, “Amidst the macro-economic headwinds moderating the base metal prices, Hindustan Zinc had a positive start of the year with a strong operational performance, attributable to consistent cost optimisation efforts and operational efficiencies, thereby protecting margins.

With a first-time sequential drop in first quarter cost of production in the recent past, we continue to maintain our cost leadership in the global zinc cost curve. As we advance forward in this transformational year, we continue to focus on our ongoing development projects, automation & digitalisation investments and sustainable operations.”

Hindustan Zinc, a Vedanta Group company, is an integrated producer of zinc, lead and silver. As of June 2023, Vedanta held 64.92% stake in the company.

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