Hindustan Zinc (500188) Q1 24/25 earnings summary

Executive summary

• Achieved highest-ever Q1 mined and refined metal production at 263,000 tons and 262,000 tons, respectively, with significant cost improvements, 19% YOY net profit growth, and expanded zinc market share.

• Advanced sustainability initiatives, including the launch of Asia's first low-carbon green zinc, EcoZen, and increased renewable energy use to 8.5% of total power.

• Delivered industry-leading shareholder returns, with market capitalization more than doubling and a record dividend payout.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved, showing strong operational and financial performance year-over-year.

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

Financial highlights

• Q1 revenue: INR 8,130 crore, up 12% YOY and 8% sequentially, with EBITDA at INR 3,946 crore (up 17% YOY), PAT at INR 2,345 crore (up 19% YOY), and effective tax rate at 25%.

• Dividend payout of INR 4,225 crore during the quarter, representing 500% of face value.

• Free cash flow from operations was INR 3,432 crore for the quarter.

• Basic and diluted EPS for the quarter were INR 5.58 (standalone) and INR 5.55 (consolidated), up from previous year.

• Cash balance: INR 10,885 crore; debt: INR 11,200 crore as of Q1 end.

Outlook and guidance

• Maintained volume guidance for FY25, targeting 5%-7% growth in metal and 3%-5% in silver production over last year.

• On track for four-year lowest cost with an entry cost of production (COP) of $1,107/t in Q1 FY25, a 7% YOY improvement.

• Phased completion of renewable energy projects targeted by June 2025.

• Fertilizer plant commissioning targeted by Q4 FY25; new roaster at Debari to be completed by Q2 FY26.

• Board declared an interim dividend of ₹10 per share, totaling ₹4,225 crore for FY25.