Hindustan Zinc Net Profit Drops 11.8% In Q4, EBITDA Down 16%

Hindustan Zinc Limited on Friday reported its results for the fourth quarter and full year ended March 31, 2023. During Q4 FY23, its revenue from operations during the quarter was Rs 8,509 crore, down 3.3 per cent year-on-year (YoY) on account of lower zinc, lead and silver prices partly offset by higher metal and silver volumes and favourable exchange rates.

EBITDA for the quarter was Rs 4,208 crore, down 16.0 per cent YoY and up 13.2 per cent sequentially. Sequential EBITDA improved primarily due to better revenue and reduced costs. EBITDA for the full year was INR 17,590 Crore, up 8.0 per cent YoY, driven by improved metal and silver volumes, higher zinc LME, gains from strategic hedging and favourable exchange rates partly offset by higher costs and lower lead & silver prices.

Net profit for the quarter was at Rs 2,583 Crore, down 11.8 per cent YoY and up 19.8 per cent sequentially. Increase was primarily on account of improved EBITDA and lower tax expense. For the full year, net profit was at Rs 10,511 Crore, up 9.2 per cent YoY, led by higher EBITDA partly offset by increase in tax.

These were the numbers from the Vedanta subsidiary despite recording highest ever quarterly mined metal production since UG transition at 301 kt, an increase of 2.0 per cent YoY and 18.6 per cent sequentially owing to higher ore production and improved mined metal grades.

For the full year, revenue from operations stood at Rs 34,098 crore, witnessing an increase of 15.8 per cent YoY, led by improved zinc LME, metal & silver volumes, gains from strategic hedging and favourable exchange rates while being partially offset by lower lead and silver prices.

During the year, the Company contributed Rs 24,949 Crore (73 per cent of total operating revenue) to the Government treasury.

As the markets closed on Friday, Hindustan Zinc’s shares were down 1.42 per cent (Rs 322.90).