Metal producer Hindustan Zinc Ltd reported a strong third quarter performance, with a profit after taxes (PAT) of Rs 2,028 Crores, up 17% quarter-over-quarter. The company's revenue, EBITDA, and PAT all showed sequential increases of 8%, 14%, and 17%, respectively.
Profit was down on a year on year basis because of lower metal prices this year.
Revenue from operations during the quarter was Rs 7,310 Crore, up 8% q-o-q on account of better zinc & silver volumes, higher zinc prices and favourable exchange rates, partly offset by lower lead prices and volumes.
The revenue witnessed a decline of 7% y-o-y on account of significantly lower zinc prices, lower zinc volumes and strategic hedging impact in base period partly offset by increased silver & lead volumes and prices and favourable exchange rates.
Zinc cost of production before royalty (COP) for the quarter stood at US$ 1,095 (Rs 91,180) per MT, lower by 4% q-o-q (3% lower in Rs terms) and 15% y-o-y (14% lower in Rs terms).
EBITDA for the quarter was Rs 3,559 Crore, up 14% q-o-q and down 4% y-o-y in line with the revenue from operations and cost improvement, and for 9M FY24 EBITDA was Rs 10,040 Crore, down 25% y-o-y, mainly on account of lower revenue being partially offset by cost improvement.
Net profit for the quarter stood at Rs 2,028 Crore, up 17% sequentially on account of higher EBITDA partly offset by higher tax expense, and down 6% y-o-y. 9M FY24 net profit was at Rs 5,721 Crore, down by 28% y-o-y, primarily on account of lower EBITDA partly offset by lower tax expense.
Production
The company's mined metal production for the quarter was 271 kt, up 8% sequentially and 7% y-o-y, driven by higher ore production at Rampura Agucha and Sindesar Khurd mines, further supplemented by improved mined metal grades year on year. 9M FY24 mined metal production stood at 780 kt, up 2% y-o-y on account of improved mined metal grades.
Refined metal production for the quarter was 259 kt, up 7% sequentially and 1% y-o-y in line with the plant availability. Refined metal production for 9M FY24 stood at 760 kt, flat y-o-y.
Integrated zinc production for the quarter was 203 kt, up 10% sequentially and down 4% y-o-y. Refined lead production for the quarter was 56 kt, down 1% sequentially and up 21% y-o-y on account of pyro operations being operated on lead mode for longer duration as compared to base period to maximize silver production. For the first nine months of the year, integrated zinc production stood at 597 kt, marginally down y-o-y, and refined lead production was at 163 kt, up 4% y-o-y.
Saleable silver production for the quarter was 197 MT, up 9% q-o-q and 22% y-o-y in line with the lead metal production and higher accumulation of WIP in Q2 FY24. 9M FY24 saleable silver production stood at 556 MT, up 5% y-o-y in line with lead metal production.