Vedanta Group company Hindustan Zinc Ltd on Friday released its fiscal fourth quarter earnings report with profit at Rs 3,003 crore, surpassing estimates. This was 47.35 per cent higher in comparison to Rs 2,038 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 9,087 crore, up 20.37 per cent as against Rs 7,549 crore recorded during the fourth quarter of previous financial year. Revenue growth during the quarter was driven by higher lead volume, zinc and silver prices and stronger dollar. The company EBITDA stood at Rs 4,816 crore, up 32 per cent YoY. Hindustan Zinc delivered 16-quarter lowest zinc cost of production of $994/MT, better 5 per cent YoY.
According to a CNBC TV18 poll, Hindustan Zinc was expected to post Q4 profit at Rs 2,615 crore and revenue for the quarter was estimated at Rs 8,835 crore.
Hindustan Zinc’s performance for FY25
For the full financial year, Hindustan Zinc posted its second highest ever revenue at Rs 34,083 crore, reporting a growth of 18 per cent YoY. Profit for the period came in at Rs 10,353 crore, up 33 per cent YoY. The company generated free cash flow from operations of Rs 13,784 crore. The Vedanta Group company recorded a historic high production of mined metal of 1,095 kt and refined metal of 1,052 kt. During FY25, the company surpassed 13.1 Mt metal reserves (net of 1.2 Mt production) for the first time.
Arun Misra, Chief Executive Officer, said: “Hindustan Zinc achieved its highest-ever mined and refined metal production this year. This milestone was driven by improved operational efficiencies, AI integration, and a strong focus on digitalization and automation, resulting in sustainable cost reductions and industry-leading margins.”
Sandeep Modi, Chief Financial Officer, said, “Despite the global uncertainties, including recent market volatility from the ongoing trade war, our fundamentals remain robust. With a strong balance sheet, structurally leaner cost base and clear strategic direction, Hindustan Zinc is well-positioned to navigate external headwinds and continue delivering consistent, industry-leading returns.”
Hindustan Zinc’s liquidity status
As on March 31, 2025, the company had healthy gross investments and cash & cash equivalents of Rs 9,482 crore invested in high quality debt instruments. Total borrowings outstanding as on March 31, 2025, was Rs 10,651 crore. Net debt reduced to Rs 1,169 crore as against Rs 4,117 crore as on December 31, 2024.
In its post-earnings press conference, Hindustan Zinc said that the zinc and lead prices are forecast to stay resilient despite some expected surplus. The management also maintained that silver may see sustained deficit in the near-future due to growing industrial use. This would be supported by renewable energy and other emerging uses in automotive, electronics, and 5G applications.