Sequentially revenue witnessed a decline of 6.7%, primarily due to lower zinc prices & volume and lower silver prices while being offset by favourable exchange rate, higher lead prices and improved lead & silver volumes.

Zinc cost of production before royalty (COP) for the quarter was $ 1,137 (Rs 93,981) per MT, lower by 9.7% (6.3% lower in Rs terms) y-o-y and lower by 4.8% (4.2% lower in Rs terms) sequentially. Zinc COP for H1 FY24 was $ 1,167 (Rs 96,144) per MT, lower by 7.4% (2.6% lower in Rs terms) y-o-y. Cost improvement is majorly on account of softened coal and input commodity prices, better domestic coal (linkage) availability, further supported by better grades sequentially.

EBITDA for the quarter was Rs 3,122 crore, down 28.8% year on year. EBITDA margin stood at 46% in Q2 FY24.

Mined metal production for the quarter was 252 kt, down 1.4% y-o-y and 2.0% sequentially mainly due to lower ore production at Rampura Agucha and Kayad mine partly offset by better overall metal grades.

Refined metal production for the quarter was 241 kt, down 1.8% y-o-y and 7.1% sequentially on account of scheduled maintenance activity.

Integrated zinc production for the quarter was 185 kt, down 2.3% y-o-y and 11.7% sequentially. Refined lead production for the quarter was 57 kt, flat as compared to Q2 FY23 and up 11.7% sequentially on account of pyro plant operations on lead mode during the quarter

Saleable silver production for the quarter was 181 MT, marginally up sequentially and down 6.8% y-o-y due to accumulation of WIP in Q2 FY24.

As on September 30, 2023, the company's gross investments and cash & cash equivalents were Rs 11,393 crore as compared to Rs 9,709 crore at the end of June'23 which was invested in high quality debt instruments. Company generated cash flow of Rs 2,648 crore during the quarter.

With respect to outlook for FY24, Hindustan Zinc said that mined metal is expected to be between 1,075-1,100 kt and refined metal production in the range of 1,050-1,075 kt. 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.

Arun Misra, CEO, said, “Hindustan Zinc witnessed significant milestone achievements in its expansion efforts during the quarter. I am pleased to share the commissioning of our Fumer plant, Rajpura Dariba concentrator and Zinc Alloy facility ensuring a more sustainable, circular and efficient operations. Catalysing growth, our plants and assets are also geared up to maximise performance. With delivery of steady operational performance in first half of the year and ramped up facilities, we are confident of delivering a standout financial year.

This quarter we commissioned another 4,000 KLD zero liquid discharge plant at Zawar mines and entered in an agreement for 180 LNG vehicles for green transportation. I am happy to share that our ambitious net zero targets are now approved by SBTi making Hindustan Zinc the only Indian company in mining sector with validated targets.”

Meanwhile, the company's board has approved the creation of pledge for minimum 26% equity shares held by HZL in SRIPL 4 in favour of the lenders of SRIPL 4.

As a part of achieving goal of 50% Green House Gases (GHG) emission reduction by 2030, HZL had already entered into Power Delivery Agreement (PDA) with Serentica Renewables India 4 Private Limited (SRIPL 4).

For financial closure of the Project, pledge of 100% equity shares of the SRIPL 4 (HZL having minimum 26% of equity shares valuing upto Rs 350 crore in SRIPL 4 and SRIPL holds the remaining 74% of the equity shares) has to be provided as security to the External Commercial Borrowing (ECB) lenders of SRIPL 4.

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