Vedanta Group firm Hindustan Zinc on Friday, October 20, reported a 35% year-on-year (YoY) decline in consolidated net profit at Rs 1,729 crore for the September quarter of the current financial year (Q2FY24), primarily on account of lower EBITDA partly offset by lower tax expense. The company had posted a net profit of Rs 2,680 crore for the year-ago period, Hindustan Zinc said in a filing to the BSE.
Revenue from operations in July-September period decreased to Rs 6,619 crore, down 18.5% YoY from Rs 8,127 crore in the year-ago quarter, the filing said. The revenue was hit on account of significantly lower zinc prices, lower zinc and silver volumes and differential strategic hedging impact partly offset by higher lead and silver prices and favourable exchange rates.
Sequentially revenue witnessed a decline of 6.7%, primarily due to lower zinc prices and volume and lower silver prices while being offset by favourable exchange rate, higher lead prices and improved lead & silver volumes.
The Ebitda (earnings before interest, taxes, depreciation, and amortization) slipped 29% y-o-y to Rs 3,139 crore mainly on account of lower revenue being partially offset by cost improvement, while the operating margin fell 670 basis points at 46.2%.
The Vedanta subsidiary has also approved pledging of 26% stake in Serentica Renewables India unit at a value of Rs 350 crore.
"We have successfully achieved third consecutive quarter of sustained cost improvement and the lowest cost in the last six quarters. We are well positioned to execute our strategic priorities in FY24 revolving around cost optimisation, digital advancement enhancing our competitive edge, healthy cash flows and robust balance sheet thereby generating long-term sustainable value for shareholders,” said CFO Sandeep Modi.
"Hindustan Zinc witnessed significant milestone achievements in its expansion efforts during the quarter. I am pleased to share the commissioning of our Fumer plant, Rajpura Dariba concentrator and Zinc Alloy facility ensuring a more sustainable, circular and efficient operations," said CEO Arun Misra.
"Catalysing growth, our plants and assets are also geared up to maximise performance. With delivery of steady operational performance in first half of the year and ramped up facilities, we are confident of delivering a standout financial year," Misra said.
Shares of Hindustan Zinc dipped nearly 4% on the NSE post the announcement of the Q2 results.
The company is the country's only integrated producer of zinc, lead and silver. It has its headquarters in Udaipur, Rajasthan where it has its zinc, lead mines and smelting complexes.
First Published: Oct 20, 2023 2:36 PM IST
