 "Hindustan Zinc Q3FY25 results: Net profit rises 32%, revenue up 18%")
Zinc and silver producer Hindustan Zinc -- a part of Vedanta group -- on Tuesday reported a 32 per cent year-on-year (Y-o-Y) jump in its consolidated net profit for the third quarter of the financial year 2025 (Q3FY25) on the back of lower costs and higher metal prices.
Hindustan Zinc’s net profit came in at Rs 2678 crore Q3FY25, against Rs 2,028 crore reported in the same period last year. Its revenue from operations grew at 18 per cent to Rs 8315 crore from a year ago.
“While the volume remained flat or slightly higher, higher profit was due to both higher LME and lower cost,” said Arun Misra, chief executive officer & whole-time Director for Hindustan Zinc.
According to HZL’s presentation, total refined production for zinc and lead was flat at 259 KT (thousand tonnes) from a year ago. In the same period, Zinc LME prices (London Metal Exchange) were up 22 per cent from a year ago. The cost of production for zinc in dollar terms was down 5 per cent from a year ago.
The company expects to end FY25 with a capital expenditure spend of Rs 1500-1600 crore, said Sandeep Modi, Chief Financial Officer for the company, who added, by March, the company’s net debt would be Rs 2,300 crore, down from Rs 5700 crore as of September-2024.
Modi said capex for next financial year is yet to be finalised.
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In call with analysts post earnings, Modi said that board approval is needed to take the current capacity to two million tonnes. “If approved, it may take three to five years, and a capex of $2 billion to $2.5 billion,” he said.
On the proposed demerger of its business into different subsidiaries, where a government nod is awaited, Misra said, there is no timeline on the same, however, the company is focused on the critical minerals division in the meanwhile.
Of the Vedanta Group’s recently won critical mineral blocks, the one for tungsten in Tamil Nadu was scrapped due to local agitation.
On the performance, Misra said, “Overall, very strong fundamentals to get into the fourth quarter to produce fabulous results, not only for the fourth quarter but also for the entire financial year. It also sets us up for more than 1.2 million tonne production next year.”
The company looks to commission its roaster plant in the current quarter.