Sequentially, the net profit declined 19.6% on account of lower EBITDA partly offset by lower tax expense.

Revenue from operations during the quarter was Rs 7,866 crore, down 1.6% year on year (YoY), on account of lower LME coinciding with lower refined metal and silver volumes partially offset by favourable exchange rates and gains from strategic hedging.

Sequentially revenue witnessed a decline of 5.6%, owing to lower zinc LME, lower lead & silver volumes and lower gains from strategic hedging partly offset by favourable exchange rates, improved zinc volumes and improved lead and silver prices.

Zinc cost of production before royalty (COP) for the quarter was $1,293 (Rs 1,06,203) per million tonnes (MT), up 12.7% (23.5% higher in Rs terms) YoY and 2.7% (5.9% higher in Rs terms) sequentially. The COP was affected largely on account of elevated coal prices, input commodity inflation and lower domestic coal (linkage) availability partially offset by higher volumes & improved operational efficiencies.

EBITDA for the quarter was at Rs 3,717 crore, down 15.4% YoY and 15.3% sequentially, primarily due to lower revenues and increased costs on account of the prevailing input commodity inflationary environment.

On the operational front, mined metal production for the quarter was at 254 kt, marginally up from Q3 FY22 driven by higher ore production and marginally down compared to last quarter due to overall mined metal grades.

Integrated metal production for the quarter was at 257 kt, lower by 1.7% YoY as per mined metal availability. Sequentially, up by 4.5% with better plant and mined metal availability.

Zinc production during the quarter was at 210 kt, down 1.7% YoY and up 11.3% sequentially. Lead production for the quarter was at 46 kt, lower by 1.4% y-o-y and 18.1% sequentially due to planned shutdown at Dariba Lead plant in Q3 FY23.

Silver production for the quarter was at 161 MT, down 6.9% YoY owing to lower feed grade at SK Mine in line with mine plan for the quarter. It was down 17.1% sequentially in line with lead metal production.

As on 31 December 2022, the company's consolidated gross investments and cash & cash equivalents were Rs 16,482 crore as compared to INR 17,807 crore at the end of September 2022.

The firm's consolidated net investments as at end of 31 December 2022, were Rs 11,378 crore as compared to Rs 15,696 crore at end of September 2022.

The company's board has approved third interim dividend of Rs 13 per equity sharee for the Financial Year 2022-23. The record date for the same is fixed on Monday, 30 January 2023. The dividend will be paid within stipulated timelines as prescribed under law.

Arun Misra, CEO, said, “Hindustan Zinc delivered best-ever 9 months refined metal on the back of highest ever mined metal. In FY22, we reached the one million tonne mined metal landmark, and this year with the current run-rate, we are confident of achieving the one million tonne refined metal mark and are fully geared to deliver another stellar annual performance. Reaching this milestone in FY23 along with a resilient pipeline of projects will bring us closer to our vision of 1.2 million tonne mined metal in coming years.”

“On the sustainability front, I am pleased to share that Hindustan Zinc is now in the top 3 sustainable companies in metal & mining sector as rated in S&P Global Corporate Sustainability Assessment which is a testimony to our efforts and to the multiple initiatives that we are pursuing to achieve net zero by 2050. In this journey, our focus is to reduce dependance on thermal coal in near term through right investments in renewable projects,” he added.

Sandeep Modi, deputy & interim CFO, said, “We delivered a strong operational & financial performance with yet another landmark of record 9 months Revenue, EBITDA and PAT, delivering a robust EBITDA margin of 52% despite heightened volatility in commodity prices on account of global macroeconomic environment.”

Further, Modi added, “The consolidated quarterly performance was a blend of operational efficiencies impacted by input commodity inflation. With softening of coal cost and ongoing structured cost optimization plan targeted with operational efficiencies, we are confident to deliver yet another stellar financial performance and continue to maintain our cost leadership in global cost curve. With our continuing efforts to expand our Renewable Power investments and with current tie ups of up to 450 MW, we foresee a better cost predictability and improved cost structure.”

Meanwhile, the company's board has also approved to purchase the equity shares of THL Zinc, Mauritius which comprises shares held in Black Mountain Mining Pty, South Africa (69.6%) and THL Zinc Namibia Holdings (100 %), Namibia (Zinc Assets) by Hindustan Zinc (HZL) through its wholly owned subsidiary (HZL WOS), for a cash consideration not exceeding $2,981 million in a phased manner. THL Zinc will become a wholly-owned subsidiary of the company.

This investment is an attractive opportunity for Hindustan Zinc to grow and increase its foothold overseas and take its brand globally. Hindustan Zinc will have the combined Reserves and Resources of 1000+ million tonnes of ore & 65+ million metric tonnes of metal across India and Africa.

Further, the mining company said that Kiran Agarwal, chairperson and director of the company had stepped down from the board effective from 18 January 2023 to pursue Vedanta Group chairman's vision to give back 75% of his wealth to the society through his personal foundation.

The board of directors based on the recommendation of Nomination and Remuneration Committee, had approved the appointment of Priya Agarwal as additional director and chairperson of the company with immediate effect, subject to approval of the shareholders.

Hindustan Zinc, a Vedanta Group company, is an integrated producer of zinc, lead and silver. As of 30 September 2022, Vedanta holds 64.92% stake in the company.