Hindustan Zinc reports decent production in Q2

The zinc miner said its mined metal production rose 3% to 255,000 tonnes in Q2 FY23 as against 248,000 tonnes in Q2 FY22.

The miner reported highest-ever second quarter mined metal production driven by better grades and improved mill recoveries. Sequential growth of 1% was largely on account of better grades.

The company reported refined metal production in second quarter at 246,000 tonnes, up 18% YoY with improved smelter performance, better mined metal availability and base impact due to extended maintenance shutdown in the same period last year. However, refined metal was lower by 6% QoQ because of lower roaster availability due to breakdown of an acid storage tank at Chanderiya plant in Q2 FY23 and time taken in ramp up of production post maintenance.

Integrated zinc production was 189,000 tonnes, up 16% as compared to Q1 FY22 and down 8% compared to Q1 FY23. Refined lead production was 57,000 tonnes for Q2 FY23, up 21% as compared to Q2 FY22 and up 5% sequentially. Saleable silver production was 6.2 million ounces (moz), up 28% as compared to Q2 FY22 and up 10% sequentially in line with lead metal production and WIP liquidation.

Wind power generation for Q2 FY23 was 124 million units, down by 20% as compared to Q2 FY22 and decline of 17% as compared to Q1 FY23. The decline was mainly due to lower wind velocity & seasonality impact.

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

The mining company's consolidated net profit soared 55.93% to Rs 3,092 crore on 44% increase in revenue from operations to Rs 9,387 crore in Q1 FY23 over Q1 FY22.

Shares of Hindustan Zinc rose 0.94% to Rs 268.05 on the BSE.

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