Hindustan Zinc Q4FY25 results: Net profit rises 47.4% to ₹3,003 crore

Hindustan Zinc, a part of the Vedanta group, reported a rise in its consolidated net profit by 47.4 per cent to ₹3,003 crore in the fourth quarter of the financial year 2024–2025 (Q4FY25) compared with the same quarter last year, driven by an increase in total revenue and a lower cost of production.

 

The zinc and silver producer’s total revenue from operations jumped by 20.4 per cent to ₹9,087 crore in the January–March quarter on a year-on-year (Y-o-Y) basis.

 

Arun Misra, chief executive officer, Hindustan Zinc, said in the earnings call that the rise in revenue from operations was driven by higher net volume and increased zinc and silver prices, further supported by a strong dollar, partly offset by lower zinc and silver volume. The company also reported its highest-ever domestic zinc sales of 603 thousand tonnes (KT) with a market share of 77 per cent in FY25.

 

 

“As the world’s largest integrated zinc producer, we aim to meet rising domestic demand while maintaining our position as one of the lowest-cost producers globally and most resilient producers in the industry,” Misra said in a statement.

 

The cost of production (COP) — zinc cost of production excluding royalty — was down by 5 per cent on a Y-o-Y basis at $994 per tonne in the January–March quarter. This was led by improved metal grades and better by-product sales, further supported by increased renewable energy and softened input commodity prices, the company stated in its investor presentation. Sandeep Modi, chief financial officer, Hindustan Zinc, said in the earnings call that zinc’s COP is expected to stay around $1,025 to $1,050 per tonne this year.

 

Misra further added in the company’s earnings call that recent developments, including the retaliatory duties imposed by the United States administration, have impacted trade dynamics and introduced short-term volatility. 

 

“However, despite these headwinds, we believe India is uniquely positioned to benefit from the current environment. The government’s sustained focus on infrastructure development, ranging from smart cities to railways and highways, is driving robust steel demand, which is expected to reach 300 million tonnes (MT) by 2030, which in turn will catalyse increased zinc consumption for corrosion protection,” Misra noted.

 

The company’s profit before interest, depreciation, and tax (PBIDT) rose by 28.7 per cent to ₹5,047 crore for the quarter ended March 31 compared with the same quarter last year.

 

“With a strong balance sheet, structurally leaner cost base, and clear strategic direction, Hindustan Zinc is well-positioned to navigate external headwinds and continue delivering consistent, industry-leading returns,” Misra said.

 

The company also reported its highest-ever mined and refined metal production in FY25.

 

“Further, we are also implementing an innovative technology to recover lead and silver from the smelter waste as an alternative to fuming technology. This technology will recover an additional 27 tonnes per annum of silver and 6,000 tonnes per annum of lead and is scheduled for commissioning in Q4 of the next financial year,” Misra added.

 

The company is in the process of global tendering and engaging global exploration agencies to help increase its resource base and double the resources that Hindustan Zinc currently holds.