Hind Zinc Q4 PAT jumps 18% YoY to Rs 2928 cr

Hindustan Zinc reported an 18% increase in consolidated net profit to Rs 2,928 crore in Q4 FY22 from Rs 2,481 crore posted in Q4 FY21.

Hindustan Zinc said increase in net profit was mainly driven by higher volumes and higher metal prices. Revenue from operations during Q4 FY22 came at Rs 8,797 crore, rising 26.6% year on year, led by higher zinc volumes & zinc LME prices as well as favourable exchange rates while partly offset by lower lead & silver volumes.

Profit before tax jumped 30.3% to Rs 4,357 crore in Q4 FY22 over Q4 FY21. EBITDA for the quarter was Rs 5,007 crore, registering an increase of 29.2% year on year.

On the operational front, mined metal production for the quarter was at 295 kt, increasing 2.6% year on year on account of higher ore production at Rajpura Dariba, Sindesar Khurd & Rampura Agucha mines.

Zinc production rose 8.1% year on year to 211 kt in Q4 March 2022 over Q4 March 2021. During the quarter, the company said it sold zinc forward equivalent to approximate 15% of FY23 projected zinc production volumes. Meanwhile, lead production for the quarter under review stood rose 19% year on year to 49kt.

Commenting on the performance, Arun Misra, CEO said, Hindustan Zinc delivered bestever annual mined metal production & touched the record one million tonne mark this year. Our production of refined metal was also highest ever. With the exit run-rate for refined metal at 1.2mtpa, we are fully geared for another stellar performance this year. Our focus is to produce more and more of world-class value-added zinc alloy products with the use of latest technology & equipment. Hindustan Zinc is committed to decarbonize its mining operations and deliver on its ESG road map to achieve net zero by 2050.

The Vedanta Group company reported a 20.6% increase in consolidated net profit to Rs 9,629 crore on a 30.4% rise in revenue from operations to Rs 28,790 crore in financial year ended 2022 over financial year ended 2021.

Sandeep Modi, interim CFO said, Hindustan Zinc delivered record breaking performance with highest-ever annual Revenue, EBITDA & PAT. With stringent cost & cash conversion discipline, we continue to deliver industry leading returns, while investing towards a sustainable business. With ongoing asset optimization & integration initiatives as well as proactive measures towards combating input commodity inflation, we will continue to produce essential resources for the world & thereby create long lasting value for all stakeholders.

As of 31 March 2022, the company's gross investments and cash & cash equivalents stood at Rs 20,789 crore as compared to Rs 17,040 crore as at 31 December 2021 and Rs 22,308 crore as of 31 March 2021.

Commenting on the future outlook, Hindustan Zinc said, Both mined metal and refined metal production in FY23 is expected to be higher than last year. Mined metal is expected to be between 1,050-1,075 kt & refined metal production in the range of 1,000-1,025 kt. FY23 saleable silver production is projected to be between 700-725 MT. Zinc cost of production in FY23 is expected to be in between US$ 1,125-1,175 per MT. The project capex for the year is expected to be in the range of $125-150 million.

Hindustan Zinc is an integrated producer of zinc, lead and silver.

Shares of Hindustan Zinc ended 1.37% lower at Rs 344.90 on Friday.

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