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Hindustan Zinc Q4 And Annual Results

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Synopsis:

In FY24, Hindustan Zinc Limited achieved unprecedented production levels, setting new records in silver and metal outputs and showcasing remarkable resilience in cost efficiency amidst fluctuating zinc prices. The company reported a Profit After Tax (PAT) of INR 7,759 Crore. 

Annual Highlights:

  • Achieved record levels in both silver and metal production.
  • Demonstrated resilience in controlling costs despite lower zinc prices.
  • Reported a Profit After Tax (PAT) of INR 7,759 Crore.

Explore: Hindustan Zinc Share Price

Global Rankings and Production Growth:

  • Positioned as the 3rd largest global silver producer, with a 5% increase in annual production year-over-year (y-o-y).
  • Maintains the 2nd largest zinc reserves and resources worldwide.
  • Industry-leading growth in annual metal production, marking the highest ever.
  • Recorded the highest-ever quarterly refined metal production in Q4 FY24, a 6% sequential increase.

Additional Read: Quarterly Results

Cost Efficiency:

  • Ranked in the 1st decile of global zinc mines for cost efficiency.
  • Achieved the lowest annual Cost of Production (COP) in the past three years at US$ 1,117/MT.

Quarterly Financial Performance:

  • Quarterly revenue and EBITDA increased by 3% and 2% respectively.
  • Achieved top global ranking in the S&P Sustainability Assessment for the Metals and Mining sector.

Operational Performance:

  • Quarter mined metal production increased by 11% sequentially to 299 kt, with a slight year-over-year decrease.
  • Refined metal production reached a record high of 273 kt for the quarter, up 6% sequentially and 1% y-o-y.
  • Quarterly refined zinc and lead production saw variations, with zinc increasing and lead decreasing sequentially.

Silver Production:

  • Quarterly saleable silver production was 189 MT, reflecting a 4% decrease quarter-over-quarter but a 4% increase y-o-y.
  • Annual saleable silver production reached a record high of 746 MT, up 5% y-o-y.

Yearly Financials:

  • Annual revenue from operations was INR 28,932 Crore, a 15% decrease y-o-y mainly due to lower zinc prices and volumes.
  • EBITDA for the year was INR 13,677 Crore, down 22% y-o-y.
  • FY24 net profit was INR 7,759 Crore, a 26% decrease y-o-y, influenced by lower EBITDA but partly offset by reduced tax expenses.

Reserves and Resources:

  • Total reserves and resources as of March 31, 2024, were 456.3 million tonnes containing 30.8 million tonnes of metal, supporting more than 25 years of production.
  • Over the past 5 years, reserves and resources increased by 35%, despite the production of 65.1 million tonnes of ore.

Financial Performance and Production

Sales (INR Crore)

Particulars

Q4 2024

Q3 2024

Change

FY 2024

FY 2023

Zinc

4,858

4,502

+8%

18,062

24,180

Lead

961

1,038

-7%

4,076

3,913

Silver

1,360

1,413

-4%

5,368

4,388

Others

370

357

+4%

1,427

1,617

Total

7,549

7,310

+3%

28,932

34,098

EBITDA

3,641

3,560

+2%

13,681

17,596

Profit After Taxes

2,042

2,038

0%

7,787

10,520

Earnings per Share (INR)

4.83

4.82

0%

18.43

24.90

Mined Metal Production ('000 MT)

299

271

+11%

1,079

1,062

Sales (INR Crore)Refined Metal Production and Market Prices

Sales (INR Crore)

Particulars

Q4 2024

Q3 2024

Change

FY 2024

FY 2023

Zinc

220

203

+9%

817

821

Saleable Lead

53

56

-5%

216

211

Saleable Silver (MT)

189

197

-4%

746

714

Refined Metal Sales (kt)

     

Zinc (kt)

221

203

+9%

817

821

Lead (kt)

53

56

-5%

216

211

Silver (MT)

189

197

-4%

746

714

Zinc CoP without Royalty (INR/MT)

87,284

91,180

-4%

92,470

1,00,893

Zinc LME ($/MT)

2,450

2,498

-2%

2,475

3,319

Additional Read: Annual Results

About the Company 

Hindustan Zinc Limited, a subsidiary of Vedanta Resources, is a leading zinc-lead and silver producer based in India. Founded in 1966 and headquartered in Udaipur, Rajasthan, the company holds a significant position in the global metals market, being the world's second-largest zinc miner and the third-largest producer of silver. Hindustan Zinc operates with a focus on sustainable mining practices and is recognized for its substantial contributions to the metals industry through innovative and efficient operations. Its integrated mining and smelting operations ensure the production of high-quality zinc, lead, and silver, contributing significantly to the Indian and global markets. The company's commitment to environmental sustainability and community welfare is evident through various initiatives and compliance with international standards.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Source - https://www.hzlindia.com/wp-content/uploads/Earnings-Press-Release_Q4FY24-_-190424.pdf

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