|
Net
sales (including other operating income) of Hindustan Zinc has increased 17.84%
to Rs 8614 crore driven by higher zinc and silver prices and strong dollar,
marginally offset by lower metal and silver volumes and lead prices. It is up
4% QoQ in line with increased zinc volume, zinc and silver prices and a
stronger dollar, partly offset by lower lead and silver volumes and lead
prices.
Sales
of Zinc, Lead and Silver segment has gone up 17.75% to Rs 8,297.00 crore
(accounting for 99.78% of total sales).
Sales of Wind Energy segment has gone down 14.29% to Rs 18.00 crore
(accounting for 0.22% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 36.03% to Rs
3,677.00 crore. PBIT of Zinc,Leadand
Silver segment rose 36.17% to Rs 3,678.00 crore (accounting for 100.03% of
total PBIT). PBIT of Wind Energy
reported loss of Rs 1.00 crore compared to profit of Rs 2.00 crore.
PBIT
margin of Zinc,Leadand Silver segment rose from 38.33% to 44.33%. PBIT margin of Wind Energy segment fell from
9.52% to 5.56%. Overall PBIT margin rose
from 38.25% to 44.22%.
Operating
profit margin has jumped from 48.17% to 52.23%, leading to 27.78% rise in
operating profit to Rs 4,499.00 crore.
Employee cost increased from 2.68% to 2.81%. Other expenses fell from 49.47% to
45.24%. Selling and administration
expenses fell from 12.15% to 11.97%.
Power and Oil fuel cost fell from 9.83% to 7.64%.
Other
income fell 26.35% to Rs 218 crore.
PBIDT rose 23.58% to Rs 4717 crore.
Provision for interest rose 17.28% to Rs 285 crore. PBDT rose 24.01% to Rs 4432 crore.
The
company reported EBITDA of Rs 4,539 crores, up 28% YoY driven by higher zinc
and silver prices, lower cost of production due to higher linkages and
renewable energy in FY25, higher acid realisation and stronger dollar. The
EBITDA was up 9% QoQ in line with increased zinc and silver prices, higher zinc
volume, lower cost of production and stronger dollar. The company recorded an
Industry leading EBITDA margin of around 53%.
Zinc
COP for the quarter stood at US$ 1,041 (Rs 87,960) per tonne, lower by 5%
(lower by 4% in Re terms) YoY on account of improved metal grades, better
domestic coal availability, further supported by increased renewable energy,
higher acid realisations, softened coal and input commodity prices and
operational efficiencies year on year. It was lower by 3% (lower by 2% in Re
terms) sequentially due to better acid realisations & higher metal grades.
Profit
before tax grew 32.15% to Rs 3,527.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 849
crore, compared to Rs 641 crore.
Effective tax rate was 24.07% compared to 24.02%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 32.05% to Rs
2,678.00 crore.
The
company delivered robust pre capex free cash flow from operations of Rs 2,628
crore for 3QFY25 (capex of Rs 1,024 Crores including growth capex of Rs 321
Crores) driven by higher EBITDA. As on December 31, 2024, the company had
healthy gross investments and cash, and cash equivalents of Rs 8,153 Crores
invested in high quality debt instruments. Total borrowings outstanding as on
December 31, 2024, was Rs 12,270 Crores. Net debt stood at Rs 4,117 Crores as
against Rs 5,721 Crores as on September 30, 2024
Promoters’
stake was 63.42% as of 31 December 2024 ,compared to 64.92% as of 31 December
2023 . Promoters pledged stake was
93.50% as of 31 December 2024 ,compared to 98.35% as of 31 December 2023.
Commenting on Hindustan
Zinc’s performance, Arun Misra, Chief Executive Officer, said: “Hindustan Zinc continues to execute
its strategic priorities effectively while driving operational excellence with
an emphasis on ESG and continuous improvement. As a result, we have achieved
our highest-ever production of mined and refined metals over the past nine
months. This demonstrates the underlying strength of our assets and consistent
performance, all further supported by positive market trends.
Strengthening
its position as a leader in the energy transition metals sector, I am proud to
share that Hindustan Zinc has been recognized as world’s most sustainable
metals and mining company for the second consecutive year by the S&P Global
Corporate Sustainability Assessment 2024. This achievement highlights a fourth
consecutive year of improvement in our overall score, underscoring our
dedication to sustainability, fostering positive social impact, and ensuring
governance excellence.”
Sandeep Modi, Chief
Financial Officer, said: “Our
commitment to operational excellence and cost management is yielding stronger
financial results. Hindustan Zinc achieved its highest-ever third-quarter
EBITDA and a 9-quarter best PAT. During this period, the company also recorded
its lowest cost of production in last 15 quarters at $1,041 per tonne,
positioning us well to reach a full-year cost of production at the lower end of
our guidance range.
In
line with the government’s initiative to empower the MSME sector, the company
prioritized payments to MSME vendors, achieving an average payment cycle of 18
days—60% faster than the statutory requirement. This demonstrates our
dedication to ESG principles and reinforces trust in our supply chain by
promoting greater social responsibility. With a robust balance sheet, we are
well-positioned to execute our growth strategy and create value for
shareholders through sustained operational excellence and cost-cutting
efforts.”
Operational Performance
Record
nine months Mined metal production at 784 kt, driven by improved mined metal
grades and mill recovery.
Highest
ever nine months Refined metal production at 783 kt, up 3% YoY with better
plant availability & operational parameters.
Mine
metal production in third quarter at 265 kt, up 3% QoQ driven by higher mined
metal grades and increase in production at Agucha and Zawar mines.
Refined
metal production in third quarter at 259 kt, flat YoY and down marginally QoQ
due to planned maintenance shutdown in 3Q.
For year-to-date (YTD)
results analysis
Net
sales (including other operating income) of Hindustan Zinc has increased 16.90%
to Rs 24996 crore on account of highest ever metal volume, zinc & silver
prices, and a stronger dollar, partly offset by lower silver volume and lead
prices.
Sales
of Zinc,Leadand Silver segment has gone down 4.88% to Rs 19,656.00 crore
(accounting for 81.57% of total sales).
Sales of Wind Energy segment has gone up 3,239.85% to Rs 4,442.00 crore
(accounting for 18.43% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 32.81% to Rs
10,151.00 crore. PBIT of Zinc,Leadand
Silver segment rose 33.40% to Rs 10,094.00 crore (accounting for 99.44% of
total PBIT). PBIT of Wind Energy segment
fell 25.00% to Rs 57.00 crore (accounting for 0.56% of total PBIT).
PBIT
margin of Zinc,Leadand Silver segment rose from 36.62% to 51.35%. PBIT margin of Wind Energy segment fell from
57.14% to 1.28%. Overall PBIT margin
rose from 36.75% to 42.12%.
Operating
profit margin has jumped from 46.80% to 50.28%, leading to 25.59% rise in
operating profit to Rs 12,568.00 crore.
Employee cost decreased from 2.82% to 2.66%. Other expenses fell from 50.27% to
46.67%. Selling and administration
expenses fell from 11.97% to 11.86%.
Power and Oil fuel cost fell from 10.14% to 8.18%.
Other
income fell 5.62% to Rs 756 crore. PBIDT
rose 23.28% to Rs 13324 crore. Provision
for interest rose 21.79% to Rs 844 crore.
PBDT
rose 23.38% to Rs 12480 crore. Provision
for depreciation rose 3.75% to Rs 2626 crore.
For
nine months, Ebitda stood at Rs 12,649 crore, up 26% YoY in line with record
metal volume, lower cost of production, higher zinc and silver prices and
stronger dollar. The company recorded a strong EBITDA margin of around 51%.
Zinc
COP for the nine months was US$ 1,073 (Rs 90,028) per tonne, lower by 6% (lower
by 5% in Re terms) YoY on account of record production volumes, better mined
metal grades, increased domestic coal and renewable energy usage and acid
realisations, further supported by softened coal and input commodity prices and
operational efficiencies year on year.
Profit
before tax grew 29.93% to Rs 9,854.00 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 2421
crore, compared to Rs 1863 crore.
Effective tax rate was 24.78% compared to 24.56%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 28.47% to Rs
7,350.00 crore.
For
the nine months, pre capex free cash flow from operations was Rs 9,664 Crores
(capex of Rs 3,029 crore including growth capex of Rs 929 crore, and renewable
energy investment of Rs 230 Crores) in line with higher EBITDA and efficient
working capital management
Promoters’
stake was 63.42% as of 31 December 2024 compared to 64.92% as of 31 December
2023. Promoters pledged stake was 93.50%
as of 31 December 2024 compared to 98.35% as of 31 December 2023 .
The
scrip is currently trading at Rs 433
|
Hindustan Zinc : Consolidated
Results
|
|
Particulars
|
2412 (03)
|
2312 (03)
|
Var.(%)
|
2412 (09)
|
2312 (09)
|
Var.(%)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
|
Net Sales (including other operating income)
|
8,614
|
7,310
|
18
|
24,996
|
21,383
|
17
|
28,932
|
34,098
|
-15
|
|
OPM (%)
|
52.2
|
48.2
|
|
50.3
|
46.8
|
|
47.2
|
51.3
|
|
|
OP
|
4,499
|
3,521
|
28
|
12,568
|
10,007
|
26
|
13,656
|
17,506
|
-22
|
|
Other Inc.
|
218
|
296
|
-26
|
756
|
801
|
-6
|
1,074
|
1,379
|
-22
|
|
PBIDT
|
4,717
|
3,817
|
24
|
13,324
|
10,808
|
23
|
14,730
|
18,885
|
-22
|
|
Interest
|
285
|
243
|
17
|
844
|
693
|
22
|
955
|
333
|
187
|
|
PBDT
|
4,432
|
3,574
|
24
|
12,480
|
10,115
|
23
|
13,775
|
18,552
|
-26
|
|
Depreciation
|
905
|
905
|
0
|
2,626
|
2,531
|
4
|
3,468
|
3,264
|
6
|
|
PBT
|
3,527
|
2,669
|
32
|
9,854
|
7,584
|
30
|
10,307
|
15,288
|
-33
|
|
Share of Profit/(Loss) from Associates
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT before EO
|
3,527
|
2,669
|
32
|
9,854
|
7,584
|
30
|
10,307
|
15,288
|
-33
|
|
EO Income
|
0
|
0
|
-
|
-83
|
0
|
-
|
0
|
0
|
-
|
|
PBT after EO
|
3,527
|
2,669
|
32
|
9,771
|
7,584
|
29
|
10,307
|
15,288
|
-33
|
|
Taxation
|
849
|
641
|
32
|
2,421
|
1,863
|
30
|
2,548
|
4,777
|
-47
|
|
PAT
|
2,678
|
2,028
|
32
|
7,350
|
5,721
|
28
|
7,759
|
10,511
|
-26
|
|
Minority Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit
|
2,678
|
2,028
|
32
|
7,350
|
5,721
|
28
|
7,759
|
10,511
|
-26
|
|
P/(L) from discontinued operations net of tax
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net profit after discontinued operations
|
2,678
|
2,028
|
32
|
7,350
|
5,721
|
28
|
7,759
|
10,511
|
-26
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
18.4
|
24.9
|
|
|
Notes
|
|
* EPS is on current equity of Rs 845.06 crore, Face value of Rs
2, Excluding extraordinary items.
|
|
# EPS is not annualised
|
|
bps : Basis points
|
|
EO : Extraordinary items
|
|
Figures in Rs crore
|
|
Source: Capitaline Corporate Database
|
|
Hindustan Zinc : Consolidated
Segment Results
|
|
|
% of (Total)
|
2412 (03)
|
2312 (03)
|
Var.(%)
|
% of (Total)
|
2412 (09)
|
2312 (09)
|
Var.(%)
|
% of (Total)
|
2403 (12)
|
2303 (12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Zinc,Leadand Silver
|
100
|
8297
|
7046
|
18
|
82
|
19656
|
20664
|
-5
|
99
|
27926
|
33120
|
-16
|
|
Wind Energy
|
0
|
18
|
21
|
-14
|
18
|
4442
|
133
|
3240
|
1
|
156
|
152
|
3
|
|
Total Reported Sales
|
100
|
8315
|
7067
|
18
|
100
|
24098
|
20797
|
16
|
100
|
28082
|
33272
|
-16
|
|
Less: Inter segment revenues
|
|
0
|
0
|
-
|
|
0
|
0
|
|
0
|
0
|
-
|
|
|
Net Sales
|
100
|
8315
|
7067
|
18
|
100
|
24098
|
20797
|
16
|
100
|
28082
|
33272
|
-16
|
|
PBIT
|
|
|
|
|
|
Zinc,Leadand Silver
|
100
|
3678
|
2701
|
36
|
99
|
10094
|
7567
|
33
|
99
|
10307
|
14388
|
-28
|
|
Wind Energy
|
0
|
-1
|
2
|
PL
|
1
|
57
|
76
|
-25
|
1
|
82
|
95
|
-14
|
|
Total PBIT
|
100
|
3677
|
2703
|
36
|
100
|
10151
|
7643
|
33
|
100
|
10389
|
14483
|
-28
|
|
Less : Interest
|
|
285
|
243
|
17
|
|
844
|
693
|
22
|
|
955
|
333
|
187
|
|
Add: Other un-allcoable
|
|
135
|
209
|
-35
|
|
464
|
634
|
-27
|
|
873
|
1138
|
-23
|
|
PBT
|
100
|
3527
|
2669
|
32
|
100
|
9771
|
7584
|
29
|
100
|
10307
|
15288
|
-33
|
|