Hindustan Zinc Q3FY24 results: Net profit down 6% at Rs 2,028 crore

Zinc and silver producer Hindustan Zinc (HZL) reported a 6 per cent dip on a year-on-year (Y-o-Y) basis in its consolidated net profit for the December 2023-ended quarter (Q3FY24), primarily impacted by lower London Metal Exchange (LME) prices.

For Q3FY24, Hindustan Zinc reported a consolidated net profit of Rs 2,028 crore, down 6 per cent from a year ago. Revenue for the company also declined 7 per cent Y-o-Y to Rs 7,067 crore for the quarter under review.

“The revenue witnessed a decline on account of significantly lower zinc prices, lower zinc volumes and strategic hedging impact in the base period partly offset by increased silver & lead volumes and prices, and favourable exchange rates,” the company said in its statement.

Sequentially, HZL’s net profit was up 17 per cent, while revenue rose 7 per cent in the same period.

In September, the company announced a comprehensive review of its corporate structure for unlocking potential value and intention to create separate legal entities for undertaking the Zinc & Lead, Silver, and Recycling businesses. On the proposed demerger, Arun Misra, Chief Executive Officer for the company said the board is awaiting a decision from its government nominee members. Misra is hopeful of a final decision to be taken by the next board meeting, which is expected post the March 2024-ended quarter.

Overall Earnings Before Interest, Taxation, Depreciation and Amortisation (Ebitda) for the quarter under review, the company said, was at Rs 3,559 crore, down 4 per cent Y-o-Y. Segment-wise, the company’s silver business reported a profit of Rs 1,243 crore, up almost 50 per cent from a year ago.