Hindustan Zinc Q1 results: Net profit falls 36% to ₹1,964 crore on lower metal prices; revenue drops 22% YoY
1 min read 21 Jul 2023, 02:23 PM ISTHindustan Zinc's revenue in Q1FY24 declined 22.4% to ₹7,282 crore from ₹9,387 crore, on an year-on-year (YoY) basis. Topline fell on account of lower zinc and lead LME, lower lead volumes and differential strategic hedging impact.
PremiumHindustan Zinc reported a fall of 36.5% in its net profit for the first quarter of FY24 at ₹1,964 crore from ₹3,092 crore in the corresponding quarter of last year, impacted due to lower metal prices.
The company’s revenue in Q1FY24 declined 22.4% to ₹7,282 crore from ₹9,387 crore, on an year-on-year (YoY) basis. Topline fell on account of lower zinc and lead LME, lower lead volumes and differential strategic hedging impact.
Operational performance of Hindustan Zinc also deteriorated during the quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) in April-June 2023 quarter decreased 34.8% to ₹3,347 crore from ₹5,137 crore, while EBITDA margin weakened by 870 basis points (bps) to 46% from 54.7%.
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“Amidst the macro-economic headwinds moderating the base metal prices, Hindustan Zinc had a positive start of the year with a strong operational performance, attributable to consistent cost optimisation efforts and operational efficiencies, thereby protecting margins," said Sandeep Modi, CFO, Hindustan Zinc.
The company reported highest-ever first quarter mined metal production at 257 kt, an increase of 2.1% YoY on account of higher ore production largely at Rampura Agucha & Kayad mines supported by improved mined metal grades and better mill recovery.
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Refined metal production was 260 kt for the quarter, flat YoY and down 4% sequentially in line with plant availability. Integrated zinc production was 209 kt, up 1.4% YoY and down 2.9% sequentially.
Integrated lead production for the quarter was down 5.7% YoY and 6.3% sequentially at 51 kt, in line with plant availability.
Saleable silver production for the quarter was 179 MT, up 1.2% YoY and down 1.6% sequentially in line with lead metal production and higher WIP depletion, the company said in a release.
“With a first-time sequential drop in first quarter cost of production in the recent past, we continue to maintain our cost leadership in the global zinc cost curve," Modi added.
At 2:20 pm, the shares of Hindustan Zinc were trading 1.69% lower at ₹317.50 apiece on the BSE.
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