Hindustan Zinc (500188) Q2 24/25 earnings summary

Executive summary

• Achieved record second quarter and half-year mine and refined metal production, with strong operational and financial performance driven by higher volumes, cost reductions, and favorable market conditions.

• Advanced sustainability initiatives, including a major renewable energy agreement, progress in zinc-based battery technology collaborations, and a board-approved minimum 26% equity investment in Serentica Renewables.

• Recognized for CSR and employee initiatives, including awards for social impact, sports, and workplace practices.

• Addressed a fatal incident at Sindesar Khurd mine, with commitment to enhanced safety measures.

• Unaudited consolidated and standalone financial results for Q2 and H1 FY2024-25 were approved.

Financial highlights

• Q2 FY25 revenue rose 22% year-over-year to INR 8,252 crore (₹8,004 crore consolidated), with H1 revenue up 16% to INR 16,382 crore (₹15,897 crore consolidated).

• Q2 EBITDA reached INR 4,164 crore, up 33% year-over-year, with margin over 50%, highest in eight quarters.

• Net profit before exceptional items for Q2 was INR 2,389 crore, up 38% year-over-year; after exceptional items, INR 2,327 crore, up 35% year-over-year.

• H1 net profit before exceptional items was INR 4,734 crore, up 28% year-over-year.

• Free cash flow from operations was INR 3,605 crore in Q2 and INR 7,037 crore in H1.

Outlook and guidance

• Maintained guidance for refined metal production and cost, expecting to achieve the lower end of the cost band ($1,050–1,100/ton) as renewable energy share increases.

• FY25 production guidance: mined metal 1,100–1,125 kt, refined metal 1,075–1,100 kt, silver 750–775 MT.

• Over 70% of power requirement to be met from renewable sources by June 2025, targeting a 69% carbon emission reduction.

• Fertilizer plant commissioning targeted for Q2 FY26, with expected additional EBITDA of INR 450–500 crore annually.