CRISIL said that the ratings continue to reflect the company's dominant position in the domestic zinc market, efficient and integrated operations, and strong financial risk profile. These strengths are partially offset by susceptibility to cyclicality in the galvanised steel sector and geographical and product concentration in revenue.

Commodity prices have moderated since fiscal 2023 amid global macro headwinds and fear of lower-than-expected Chinese demand growth but continues to remain robust. This, coupled with efficient cost of production along with expected easing of energy prices due to reduction in domestic power cost post monsoon, should support the company in witnessing healthy operating accrual going ahead, and the same will remain key monitorable.

Sustenance of the balance-sheet strength with continued net cash position and increase in net-worth by retention of operating earnings, supporting reduction in gearing from current levels, will remain key rating sensitivity factors.

Based in Udaipur, Rajasthan, Hindustan Zinc has zinc and lead mines in Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar, Kawad and Bamnia Kalan mines; primary smelter operations in Chanderiya, Dariba and Debari (all in Rajasthan); and finished product facilities in Uttarakhand. The company is a 64.9% subsidiary of Vedanta Ltd.

The company's consolidated net profit slipped 11.8% to Rs 2,583 crore in Q4 FY23 from Rs 2,928 crore recorded in Q4 FY22.Revenue from operations during the quarter was Rs 8,509 crore, down 3.3% year on year (YoY).

The scrip shed 0.71% to currently trade at Rs 302 on the BSE.