In Q3, Hindustan Zinc’s earnings from its operations were Rs 7,067 crore, showing a 7.4% decrease compared to the same period last year.
In the same quarter last year, Hindustan Zinc had reported a net profit of Rs 2,156 crore. However, in the most recent quarter, the net profit showed a positive sequential trend, increasing by 17% from Rs 1,729 crore. On the revenue front, the company posted Rs 7,067 crore for the quarter ending December 2023, reflecting a 7.4% decline from Rs 7,628 crore compared to the same period last year. Nevertheless, on a quarter-on-quarter basis, there was an 8% increase in revenue.
The boost in sequential revenue was attributed to factors such as increased volumes in zinc and silver, higher zinc prices, and favorable exchange rates. These positive elements were somewhat offset by lower lead prices and volumes, as detailed in the company’s filing with the bourses.
Examining the Earnings Before Tax, Depreciation, and Amortization (EBITDA), the figure stood at Rs 3,560 crore for the reviewed quarter. This represents a 14% decrease from Rs 3,717 crore recorded in the same quarter the previous year.
For the cumulative nine months ending December 2023 in the current financial year, the revenue from operations amounted to Rs 21,383 crore, marking a 16% decrease compared to the same period last year. During this nine-month period, the profit was Rs 5,721 crore, down by 28% from the previous year.
Arun Misra, the CEO, discussed the company’s performance, highlighting their focus on operational excellence. He noted that Hindustan Zinc achieved record nine-months mined metal and silver production, taking advantage of favorable opportunities in the elevated silver price environment.
Misra also pointed out a significant achievement for the company, stating that it has been ranked the highest in the S&P Global Corporate Sustainability Assessment (CSA) 2023. Among 238 companies in the metals and mining sector, Hindustan Zinc secured a score of 85 out of 100 in the assessment.
In summary, while facing some challenges reflected in the yearly decline in revenue and profit, Hindustan Zinc demonstrated resilience and adaptability. The sequential increase in net profit, coupled with operational achievements and sustainability recognition, showcases the company’s commitment to navigating the complexities of the market and contributing positively to the industry.