Vedanta-owned Hindustan Zinc reported a 12 per cent drop in consolidated net profit of ₹2,583 crore for the quarter ending March 31, 2023. Consolidated net profit in the same period last year was ₹2,928 crore.

Total income from operations (consolidated) stood at ₹8,281 crore — down 4 per cent YoY compared with ₹8,613 crore in the corresponding quarter last fiscal.

For the fiscal, total revenue from operations was at ₹33,272 crore, up 16 per cent YoY; while net profit was up 9 per cent to ₹10,511 crore. EBITDA for the quarter was ₹4,208 crore down 16 per cent YoY.

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The company, in a statement, said sequentially EBITDA improved (up 12 per cent) primarily due to better revenue and reduced costs. EBITDA for FY23 was ₹17,590 crore, up 8 per cent YoY, driven by improved metal and silver volumes, gains from strategic hedging and favourable exchange rates partly offset by higher costs and lower lead and silver prices.

Production and sales numbers

For the March quarter, zinc sales dropped 9 per cent to ₹5,861 crore, while sales of other key metals, that include lead, lost by 12 per cent to ₹1,050 crore and silver production increased 17 per cent to ₹1,217 crore.

Hindustan Zinc, in a statement, said the company has reported the best-ever production of mined metal at 301 kilo tonnes (kt) and refined metal at 269 kt, for the quarter under review.

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Integrated zinc production was at 215 kt, an increase of 2 per cent-odd YoY; while the integrated lead production was at 54 kt, an increase of 10 per cent YoY, on account of better plant availability. Annual refined metal production at 1,032 kt, a growth of 6.7 per cent YoY.

The company also saw best-ever full year integrated zinc production at 821 kt, a growth of 5.8 per cent YoY and integrated lead production at 211 kt, a growth of 10.2 per cent YoY.

Annual guidance

Both mined metal and refined metal production in FY24 is expected to be higher than last year.

As a part of its guidance for FY24, the company said, mined metal is expected to be between 1,075 kt and 1,100 kt and refined metal production in the range of 1,050 kt and 1,075 kt.

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The saleable silver production is projected to be at 725-750 tonnes.

The zinc cost of production in FY24 is expected to be in between $1,125 and $1,175 per tonne. Project capex for the year is expected to be in the range of $175-200 million.

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