Zinc producer Hindustan Zinc records a 47.35% surge in Q4 profits, fueled by increased prices and output, with revenue reaching Rs 9,087 crore.
Hindustan Zinc, a Vedanta Group gem, dramaticly outperformed predictions in their Q4 earnings report. They raked in a staggering profit of Rs 3,003 crore, miles ahead of the expected Rs 2,615 crore. This whopping increase of 47.35% smashes the previous quarter's Rs 2,038 crore revenue from the previous financial year.
Revenue from operations leaped to Rs 9,087 crore, a hearty 20.37% improvement compared to the fourth quarter of the previous fiscal year. The meteoric rise in quarterly revenue was fuelled by higher lead volumes, zinc and silver prices, and the almighty dollar's strength.
Hindustan Zinc's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) skyrocketed 32% year-on-year to Rs 4,816 crore. The zinc cost of production slashed 5% compared to last year, touching an impressive Rs 994/MT.
The stellar CNBC TV18 poll handed Hindustan Zinc some lofty expectations for Q4 profit at Rs 2,615 crore and revenue at Rs 8,835 crore. Do you think they delivered? Oh, you bet your bottom rupee they did!
Hindustan Zinc's Grand Slam in FY25
Soaring to new heights, Hindustan Zinc declared the second-highest ever revenue in FY25 at a colossal Rs 34,083 crore, representing a 18% year-on-year jump. The company's net profit ballooned by 33% to an impressive Rs 10,353 crore. Hindustan Zinc's free cash flow from operations was a whopping Rs 13,784 crore!
Arun Misra, the company's CEO, boasted about their milestone year. "We achieved our highest-ever mined and refined metal production [in FY25], all thanks to improved operational efficiencies, AI integration, and a strong focus on digitalization and automation, resulting in sustainable cost reductions and industry-leading margins," he said.Sandeep Modi, the CFO, echoed Misra's sentiments: "Despite the global uncertainties, we remain robust with a strong balance sheet, leaner cost base and clear strategic direction."
Hindustan Zinc's Cash Reserves and Borrowings
As of March 31, 2025, Hindustan Zinc had a healthy gross investment of Rs 9,482 crore. This considerable sum was invested in top-notch debt instruments. The company's total borrowings stood at Rs 10,651 crore. Net debt took a plunge, reducing to a negligible Rs 1,169 crore – Cool beans, right?
In their post-earnings press conference, Hindustan Zinc shrugged off concerns about possible zinc and lead price surpluses. Their management expressed confidence in the resilience of zinc and lead prices and predicted a sustained silver deficit due to escalating industrial use in renewable energy, automotive, electronics, and 5G applications. Oh, and let's not forget about that fancy 5G stuff – I mean, who doesn't want to be connected to the future?
[1] Revenue of ₹34,083 crore is the second-highest ever recorded by Hindustan Zinc.[2] Net Profit for the complete financial year jumped 33% to ₹10,353 crore.[3] For FY25, total metal reserves exceeded 13.1 Mt metal reserves (net of 1.2 Mt production).[4] In Q4, revenue was reported as ₹9,087 crore.[5] Q4's net profit soared to ₹3,003 crore.
Financial Articulation:
In a remarkable feat, Hindustan Zinc produced 1,095 kt of mined metal and 1,052 kt of refined metal during FY25 – sweeping records left, right, and center! Their zinc production cost touched an impressive four-year low at $1,052/MT – so low, y'all! The company captured a 77% market share for domestic zinc sales, with 22% contributions from value-added products. Florence if ever there was a company on a roll!
- Hindustan Zinc's revenue of Rs 34,083 crore in FY25 represents the second-highest ever recorded by the company, demonstrating a 18% year-on-year jump.
- The net profit for FY25 ballooned by 33% to an impressive Rs 10,353 crore, indicating steady financial growth.
- Hindustan Zinc's free cash flow from operations was an astounding Rs 13,784 crore, highlighting liquidity and financial strength.
- Arun Misra, the company's CEO, attributed their accomplishments to improved operational efficiencies, AI integration, and a strong focus on digitalization and automation.
- Sandeep Modi, the CFO, echoed Misra's sentiments, asserting that the company remains robust with a strong balance sheet, leaner cost base, and a clear strategic direction.
- Despite global uncertainties, Hindustan Zinc's management expressed confidence in the resilience of zinc and lead prices, predicting a sustained silver deficit due to escalating industrial use in various sectors such as renewable energy, automotive, electronics, and 5G applications.
- Hindustan Zinc maintained a gross investment of Rs 9,482 crore by the end of FY25, mainly invested in top-tier debt instruments, and total borrowings stood at Rs 10,651 crore, with a reduced net debt of Rs 1,169 crore, indicating savvy financial management.
