Hindustan Zinc Q3 Result: PAT Dips 6% YoY, But Mined Metal Production Grows By 8%

In the third quarter of the fiscal year, Hindustan Zinc, a Vedanta group firm, reported a net profit of Rs 2,028 crore, reflecting a 5.9% decrease compared to the same period last year. Despite the dip in profit, the company witnessed a 17% sequential increase in net profit, reaching Rs 1,729 crore.

The revenue from operations for the quarter ended December 2023 was Rs 7,067 crore, marking a 7.4% YoY decline from Rs 7,628 crore. However, on a quarter-on-quarter basis, the revenue saw an 8% rise. The company attributed this increase to higher zinc and silver volumes, elevated zinc prices, and favourable exchange rates. These factors were somewhat offset by lower lead prices and volumes.

Hindustan Zinc shared that the Earnings Before Tax, Depreciation, and Amortization (EBITDA) for the quarter under review stood at Rs 3,560 crore, a 14% fall YoY from Rs 3,717 crore.

Mined metal production for the quarter showed positive growth, reaching 271 kt, up 8% sequentially and 7% YoY. This increase was attributed to higher ore production and improved mined metal grades year on year.

For the nine months ending December 2023, the company reported a revenue from operations of Rs 21,383 crore, marking a 16% YoY decline. The profit for this period was Rs 5,721 crore, down 28% compared to the same period last year.

CEO Arun Misra commented on the earnings, stating, "With our consistent focus on operational excellence, Hindustan Zinc delivered record nine-months mined metal and silver production to leverage the elevated silver price opportunities." He emphasized the company's commitment to sustainability, revealing that Hindustan Zinc achieved the highest ranking in the S&P Global Corporate Sustainability Assessment (CSA) 2023 among 238 companies in the metals and mining sector, with a score of 85 out of 100.

Despite the company's strong operational performance, Hindustan Zinc's shares have faced challenges in the market. Over the past year, the stock has witnessed a 16% decline, in contrast to the Nifty, which provided investors with returns of approximately 19.5% during the same period.

Hindustan Zinc remains focused on operational efficiency and sustainability, aiming to navigate market fluctuations and capitalize on emerging opportunities.