Hindustan Zinc Q4 Profit Jumps 47% YoY

26 Apr 2025 , 11:18 PM

Hindustan Zinc Ltd., part of Vedanta Ltd., announced its financials for the March quarter (Q4 FY24) with a revenue of ₹9,087 crore. The revenue of the company grew 20% on a year-on-year basis.

Net profit has jumped 47% over the same quarter last year to ₹3,003 crore for the quarter. Quarterly Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was ₹4,820 crore, a year-on-year growth of 32%.

EBITDA margin was higher at 53% for the quarter from 48.3% for the same period last year, demonstrating a practically 500 basis point increase driven by increased operating efficiency and price realisation.

The board of the company cleared CEO Arun Misra’s tenure extension for one more year in favour of stability in leadership at the executive level. For the current financial year, Hindustan Zinc has provided a growth capex (capex) of between $225 million and $250 million to fund capacity growth and new project implementation.

In its post-earnings briefing, the management said that world zinc and lead prices will continue to be firm, although a supply surplus is expected. The company further emphasized an expected sustained worldwide deficiency in silver as a result of increasing industrial applications, particularly in renewable energy, automobile parts, electronics, and 5G technology.

Hindustan Zinc is India’s sole lead smelter and primary silver producer, giving it a market advantage as demand continues to rise. The 160 KTPA Roaster plant at Debari is scheduled to be commissioned during the first quarter of FY25, augmenting the company’s refining capacity.

Besides, the 510 KTPA fertilizer plant under Hindustan Zinc Fertilisers Private Limited (HZFPL) will be operational in the fourth quarter of FY25. The company reaffirmed its dividend payout policy, stating that at least 30% of its net profit for the year or 5% of its operating net worth, whichever is greater, shall be paid as dividends to the shareholders.