Lower production cost likely to support Hindustan Zinc's margins

The volume of mined metal for Q2FY25 stood at 256 kilo tonnes or kt (up 2 per cent Y-o-Y, down 2 per cent Q-o-Q), due to higher ore production at Zawar mine offset by lower volume at SK Mine

During the September quarter (Q2FY25), Hindustan Zinc’s (HZL’s) revenue was reported at Rs 8,300 crore (up 22 per cent year-on-year or Y-o-Y, and 2 per cent quarter-on-quarter or Q-o-Q), marginally above consensus.

Operating profit stood at Rs 4,100 crore (up 31 per cent Y-o-Y and 5 per cent Q-o-Q), also a small beat. The operating profit margin was 50 per cent, up from 48.5 per cent in Q1FY25.

Zinc cost of production (CoP) for Q2FY25 stood at $1,071 (Rs 89,686) per metric tonne (MT) (down 5 per cent Y-o-Y and 3 per cent Q-o-Q).

Higher volume, better