Hindustan Zinc (500188) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1 mined and refined metal production, with 263,000 tons mined and 262,000 tons refined, and 19% YOY net profit growth driven by strong prices and operational efficiencies.

• Launched Asia's first low-carbon green zinc, EcoZen, and commenced renewable power supply, with 8.5% of power from renewables.

• Announced plans to create separate verticals for recycling and silver businesses, and established partnerships for waste valorization and battery innovation.

• Board approved a new Government Nominee Director and revised Insider Trading Prohibition Code effective August 2, 2024.

• NCLT approved a Scheme of Arrangement to transfer ₹10,383 crore from General Reserves to Retained Earnings, effective July 22, 2024.

Financial highlights

• Q1 FY25 consolidated revenue was INR 8,130 crore, up 12% YOY, with EBITDA at INR 3,946 crore (up 17% YOY) and PAT at INR 2,345 crore (up 19% YOY); EPS at INR 5.55.

• Standalone revenue from operations was ₹7,893 crore, with standalone net profit at ₹2,358 crore.

• Margins expanded to 49% EBITDA and 29% net profit; cost of production at $1,107/ton, down 7% YOY.

• Dividend payout of INR 4,225 crore declared for the quarter.

• Free cash flow from operations was INR 3,432 crore, pre-capex and RE power investment.

Outlook and guidance

• Maintained FY25 volume guidance: 5%-7% growth in metal and 3%-5% in silver production; cost guidance at $1,050–$1,100/ton.

• Progressing on 160 ktpa Debari Roaster and 510 ktpa fertilizer plant, with commissioning targeted by Q4 FY25 and Q2 FY26.

• Strategic hedging in place with 90,000 tons of zinc sold forward for FY25.

• Continued investments in renewable energy, including Serentica Renewables for 450 MW contracted capacity.