Vedanta group firm Hindustan Zinc Ltd (HZL) on Friday reported a 6% year-on-year decline in its consolidated net profit at ₹2,028 crore for the quarter ended December. The same stood at ₹2,156 crore in the last-year period.
However, on a sequential basis, the net profit rose 17% from ₹1,729 crore in the September quarter on account of higher EBITDA partly offset by higher tax expense.
Revenue from operations during the reporting quarter declined 7% on-year to ₹7,067 crore on account of significantly lower zinc prices, lower zinc volumes and strategic hedging impact in base period partly offset by increased silver and lead volumes and prices and favourable exchange rates. It was ₹7,628 crore in the same quarter of the previous year.
The profit figure was higher than CNB-TV18's poll of ₹1,895 crore but revenue declined nearly 5% as against an estimated ₹7,495 crore.
The company has reported an EBITDA (earnings before interest, tax, depreciation and amortisation) of ₹3,521 crore, up from ₹3,139 crore quarter-on-quarter. Margins too expanded to 48.2% QoQ.
Liquidity and investment
The company generated cash flow of ₹2,097 crore during the quarter. As on December 31, 2023, the company's gross investments and cash and cash equivalents were ₹9,743 crore, compared to ₹11,393 crore at the end of September'23, which was invested in high quality debt instruments.
Total borrowings outstanding as on Dec'23 was ₹10,111 crore. During the quarter, the company paid dividend of ₹2,535 crore.
Hindustan Zinc achieved its highest-ever nine months' mined metal and silver production, driving the attainment of industry leading CAGR and advancing towards achieving annual guidance, it said in a filing.
"With our consistent focus on operational excellence, Hindustan Zinc delivered record nine-months mined metal and silver production to leverage the elevated silver price opportunities. The company's sustainable operational progress is reflected in its industry leading compounded annual production growth rate supplemented by safe practices," said CEO Arun Misra.
"On sustainability front, advancing towards our decarbonisation mission, Hindustan Zinc has initiated the deployment of electric and LNG vehicles in its operations for inter-unit movements and finished goods transportation, thereby reducing the Scope 3 emissions," Misra added.
The stock of the Vedanta-owned company was trading 1.6% higher during today's afternoon deals. Hindustan Zinc shares have fallen 16% in the last one year.
First Published: Jan 19, 2024 1:58 PM IST
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