Lower zinc prices caused Hindustan Zinc’s Q4 net profit to drop 21%; see all the additional information here
Hindustan Zinc, a company in the Vedanta group, recorded a Q4 net profit of Rs 2,040, which is 21% less than the Q4 FY23 profit of Rs 2583 crore. Net profit increased sequentially from Rs 2,028 crore in Q3 to Rs 2,038 crore in Q4. This is a 0.5% increase.
Compared to Rs 8,281 crore in the same quarter last year, the company’s operating revenue decreased 12% year over year to Rs 7,285 crore. Hindustan Zinc’s revenue in the third quarter rose by 3% compared to the Rs 7,067 crore it recorded in the previous quarter.
The company’s EBITDA increased by 2% on a sequential basis to Rs 3,641 crore. It was Rs 4,208 crore at this time last year, a 14% decrease from the previous year.
According to the business, lower zinc prices and volumes, as well as the effect of strategic hedging in the base period, were somewhat offset by higher volumes and prices of silver and lead and by favorable exchange rates, which also contributed to a decline in operating revenue for the whole year.
Hindustan Zinc’s forecast for FY25
With the ramp-up of all significant projects that were commissioned in the previous year and improved capacity utilization, it is anticipated that both mined metal and refined metal output in FY25 would surpass that of the previous year. It is anticipated that 1,100–1,125 kt of mined metal and 1,075–1,100 kt of refined metal would be produced.
The estimated amount of saleable silver produced in FY25 is 750–775 MT.
Production costs for zinc are anticipated to range from US$ 1,050 to US$ 1,100 per MT in FY25. The estimated project capital expenditure for the year is between US$ 270 and US$ 325 million.
