Limited near-term upside in Hindustan Zinc stock; firm aiming for expansion

The improvement was due to higher metal grades and better domestic coal availability, supported by increased renewable energy

Hindustan Zinc’s (HZL)’s revenue for the October-December quarter (Q3) of 2024-25 (FY25) was Rs 8,650 crore, up 18 per cent year-on-year (Y-o-Y) and 4 per cent quarter-on-quarter (Q-o-Q), on account of higher zinc and silver prices and a strong dollar. The Ebitda stood at Rs 4,500 crore, up 28 per cent Y-o-Y (up 9 per cent Q-o-Q) with lower-than-expected cost of production. The Ebitda margin was 52.2 per cent, up 250 bps Q-o-Q. The zinc Cost of Production (CoP) per tonne for Q3 of FY25 stood at $1,041 (Rs 87,960), down 5 per cent Y-o-Y (down 3 per cent Q-o-Q