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Hindustan Zinc Q4 results: Vedanta-promoted company's profit plunges 21% to ₹2,038 cr
Hindustan Zinc revealed that there was a 21 per cent year-on-year (YoY) drop in consolidated net profit at ₹2,038 crore in Q4. It
Hindustan Zinc Q4 results were announced today and the big revelation was that its operations revenue dropped 12.02 per cent YoY to ₹7,285 crore. Last year, same quarter, Hindustan Zinc logged ₹8,281 crore in revenue. The company is promoted by Anil Agarwal-led Vedanta. Hindustan Zinc revealed that there was a 21 per cent year-on-year (YoY) drop in consolidated net profit at ₹2,038 crore in Q4. It was ₹2,583 crore last year for the same quarter. Not just that, even other income dropped from ₹354 crore in Q4 last year to ₹273 crore.
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This is the sixth consecutive quarter of declining profit reported by Hindustan Zinc and is beng blamed mostly on zinc prices tumbling over inadequate demand especially from its biggest consumer - China.
Hindustan Zinc share price dropped 2.7% even though it was marginally up before the announcement.
And even though Hindustan Zinc reported a 2% increase in zinc production in Q4, its sales fell 17%. and revenue from its bigegst segment, which is zinc mining, fell 16%, and led to a 12% drop in overall revenue.
The company revealed that both mined metal and refined metal production in fiscal year 2025 is expected to be higher than last year.
In his reaction, Arun Misra, CEO, said: “FY 2023-24 has been a year of solid growth for HZL, with mined metal, refined metal, and silver recording its highest historic production levels, supported by a backdrop of fatality-free operations."
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Sandeep Modi, CFO, added, “Despite the plunging metal prices, HZL has consistently sustained its margin at a steady 47% by recording its fifth consecutive quarter of sustained cost reduction, clocking the lowest cost in last 3 years."
Hindustan Zinc Outlook
The company said it expects both mined metal and refined metal production in FY25 to be higher than last year with the former likely to be between 1,100-1,125 kt and the latter in the range of 1,075-1,100 kt.
Saleable silver production is projected to be between 750-775 MT in FY2025.
After Hindustan Zinc, Vedanta, Hindalco and Tata Steel will also announce their Q4 results.
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The quarter in brief
* The company is now the 3rd largest silver producer globally, with highest silver annual production, up 5% y-o-y
* Holds 2nd largest zinc reserves and resources globally
* Industry leading production growth rate with best-ever annual metal production
* Highest-ever quarterly refined metal production for Q4 FY24, up 6% sequentially
* Quarterly Revenue up by 3% and EBITDA up by 2%
