Hindustan Zinc net doubles to ₹5,469 cr on better realisation, lower cost

Hindustan Zinc has reported that its net profit more than doubled in the June quarter to ₹5,469 crore from ₹2,234 crore logged in the same period last year on better realisation and lower cost even as the production was almost flat.

Revenue increased 72 per cent to ₹13,033 crore (₹7,591 crore). Zinc sales revenue was up 48 per cent at ₹7,304 crore, while that of lead and silver jumped 25 per cent and 169 per cent to ₹1,086 crore and ₹3,839 crore.

EBITDA more than doubled to ₹8,074 crore (₹3,860 crore). Mined metal production was was flat at 2.68 lakh tonnes (2.65 lt), while refined zinc output was up 6 per cent at 2.13 lt (2.02 lt) and lead output was down 2 per cent at 47,000 tonnes.

Silver production was flat at 1.49 lt y-on-y. Zinc sales were up 5 per cent at 2.11 lt, while for lead it was down 2 per cent at 47,000 tonnes and silver sales increased marginally 2 per cent to 1.49 lt. Cost of production was down 16 per cent at $851 ($1,010) a tonne.

Zinc and silver prices on the LME zoomed 31 per cent and 117 per cent to $3,466 ($2,641) a tonne and $73.2 ($33.7) an ounce.

Lead prices were flat at $1,954 ($1,947) a tonne. The  board has approved the appointment of Amarendu Prakash as the Chief Executive Officer and Whole-time Director, effective August 1, replacing Arun Misra. Prakash previously served as the Chairman and Managing Director of Steel Authority of India between 2023 and 2026.

The company has also appointed Amit Gupta as the Chief Financial Officer with effect from June 1. A qualified Chartered Accountant with over two decades of experience, he brings deep expertise in strategic finance, capital allocation, business transformation, cost optimisation and corporate governance across Vedanta Group companies.

Arun Misra, Chief Executive Officer, Hindustan Zinc, said the debottlenecking initiatives continue to enhance refined metal production and reinforce the company’s position as one of the world’s lowest-cost zinc producers.

As demand for zinc continues to be driven by infrastructure and the energy transition, the company remains committed to deliver responsible growth and long-term value for our stakeholders, he added. Amit Gupta, Chief Financial Officer, said the performance reflects the company’s focus on operational excellence, cost competitiveness and disciplined financial management.

Backed by a strong balance sheet and prudent capital allocation, the company remains well positioned to deliver consistent growth, while continuing to generate sustainable long-term value for stakeholders, he added.

As on June 30, the company has gross investments and cash of ₹12,892 crore. The borrowing outstanding was at ₹7,320 crore.