Hindustan Zinc Q3 Results: Net Profit Surges 32% to Rs 2,678 Crore
Hindustan Zinc has announced robust financial results for the third quarter of the fiscal year 2025 (Q3 FY25), with a significant 32% year-on-year increase in consolidated net profit. The company's strong performance is attributed to higher zinc and silver prices, a favorable dollar exchange rate, and record production levels.
Financial Performance Highlights
Hindustan Zinc reported a consolidated net profit of Rs 2,678 crore for Q3 FY25, a substantial rise from the same period last year. Revenue from operations also witnessed a healthy increase of 18% year-on-year, reaching Rs 8,315 crore. On a sequential basis, net profit grew by 15% from Rs 2,327 crore in the preceding quarter (Q2 FY25), while revenue increased by 4%.
EBITDA and Margin Expansion
The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for Q3 FY25 improved by 27% year-on-year, reaching Rs 4,460 crore. This resulted in an improved EBITDA margin of 54%, up from 49.8% in the same quarter of the previous fiscal year.
Segment-Wise Revenue Performance
Revenues from zinc, lead, and other metals surged by 21% year-on-year to Rs 6,832 crore, driven by increased zinc prices and a strong dollar. Silver revenues also saw a marginal increase, rising to Rs 1,465 crore from Rs 1,413 crore in the corresponding quarter of the previous year. However, the overall revenue growth was partially offset by lower metal and silver volumes and decreased lead prices.
Operational Performance and Production
Hindustan Zinc achieved record nine-month mined metal production of 784 kt, driven by improved mined metal grades and mill recovery. The company also reported its highest-ever nine-month refined metal production at 783 kt, a 3% year-on-year increase, attributed to better plant availability and operational parameters.
Mined metal production for Q3 FY25 stood at 265 kt, a 3% quarter-on-quarter increase, driven by higher grades and increased production at specific mines. Refined metal production for the same period was 259 kt, remaining flat year-on-year and marginally lower quarter-on-quarter due to a planned maintenance shutdown.
Cash Flow and Investments
The company delivered a strong pre-capex free cash flow from operations of Rs 2,628 crore for Q3 FY25, primarily driven by higher EBITDA. As of December 2024, Hindustan Zinc had healthy gross investments and cash and cash equivalents totaling Rs 8,153 crore.
Management Commentary
"We have achieved our highest-ever production of mined and refined metals over the past nine months. This demonstrates the underlying strength of our assets and consistent performance, further supported by positive market trends," said Arun Misra, CEO of Hindustan Zinc.
Hindustan Zinc's strong Q3 results highlight the company's operational efficiency, robust production levels, and ability to capitalize on favorable market conditions. The company remains well-positioned for continued growth and profitability.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment