Hindustan Zinc Q1 results: Net profit jumps 56% to Rs 3,092 cr; revenue up 45%

Hindustan Zinc Limited (HZL) on Thursday reported consolidated net profit at Rs 3,092 crore, a jump of 55.9 per cent year-on-year, for the quarter ended 30 June, 2022. The mining and resources producer of zinc, lead, silver and cadmium had reported a net profit of Rs 1,983 crore in the year-ago period.

The company's revenue from operations rose 45 per cent to Rs 9,236 crore in the quarter under review from Rs 6,378 crore in the same quarter last fiscal, led by higher zinc volumes and zinc LME prices as well as favourable exchange rates while partly offset by lower silver prices, it said in a regulatory filing. Zinc LME prices and zinc metal sales increased 34.2 per cent and 10.2 per cent, respectively as compared to Q1FY22.

Sequentially revenue increased 6.7 per cent, primarily due to higher zinc LME, gain from strategic hedging and higher lead & silver volumes which was partially offset by lower zinc volumes and lower lead & silver prices, HZL added.

Furthermore, HZL's EBITDA, or earnings before interest, taxes, depreciation, and amortization for the quarter was Rs 5,278 crore, up 48.3 per cent y-o-y. Sequentially, EBITDA was up 5.4 per cent, it added.

Commenting on the performance, Arun Misra, CEO, said: “Hindustan Zinc delivered best first-quarter production for mined metal, refined metal & silver. With the exit run-rate for both mined & refined metal crossing over one million tonnes, we are fully geared to deliver another stellar performance this year. Board approval received for setting-up of the Fertilizer plant & an additional Roaster is also a welcome move. With such synergetic growth projects along the value chain, we are confident to deliver long-lasting sustainable value for all stakeholders.”

Sandeep Modi, Deputy & Interim CFO, said: “Hindustan Zinc touched a new milestone with highest ever quarterly Revenue, EBITDA and Net Profit. Our proactive approach to cash in the opportunity from higher LME through strategic hedging helped us to protect overall margin in an input commodity inflationary environment. As a management team, we continue to monitor the coal cost situation closely & all efforts are in place to ensure security over the short term and reduce dependence on Thermal in the medium to long term through right investments in renewable projects.”

Shares of HZL on Thursday traded 1,72 per cent higher at Rs 283.80 apiece on BSE during late trading hours.