Hindustan Zinc Ltd (HZL) reported its financial results for the quarter ended December 2023, revealing insights into its performance and strategic initiatives. Let’s delve into the details.

Net Profit Decline

HZL witnessed a 6% decline in consolidated net profit to Rs 2,028 crore during the quarter, compared to Rs 2,156 crore in the corresponding period of the previous fiscal year. However, on a quarter-on-quarter basis, the company’s profit grew by a notable 17%.

Revenue and Expenses

The total income of HZL decreased to Rs 7,606 crore from Rs 8,214 crore in the same quarter last year. Similarly, its expenses declined to Rs 4,937 crore compared to Rs 5,028 crore in the year-ago period.

Carbon Emissions Reduction Initiatives

Arun Misra, Chief Executive Officer of HZL, highlighted the company’s efforts to reduce carbon emissions by deploying electric and LNG vehicles for inter-unit movements and transportation of finished goods.

Cost Optimization and Operational Efficiencies

Sandeep Modi, CFO of HZL, emphasized the company’s consistent cost improvement, marking the lowest cost in the last 10 quarters. HZL remains focused on cost optimization, operational efficiencies, working capital management, digital improvements, and shareholder value maximization.

Production Growth

HZL’s production of mined metal in the quarter rose by 8% sequentially and 7% year-on-year, driven by higher ore production at Rampura Agucha and Sindesar Khurd mines. Refined metal production also witnessed growth, increasing by 7% sequentially and 1% year-on-year.

Project Updates and Financial Highlights

The company provided updates on its ongoing projects, including the operation of fumer and alloy plants, and the progress of a new roaster and Hindustan Zinc Fertilisers Private Ltd (HZFPL). HZL generated a cash flow of Rs 2,097 crore during the quarter, with total outstanding borrowings of Rs 10,111 crore as of December 2023. Additionally, HZL paid a dividend of Rs 2,535 crore during the quarter.

Market Position

Hindustan Zinc is recognized as the world’s second-largest integrated zinc producer and the fifth-largest silver producer. The Udaipur-based company holds a significant share of approximately 80% in the growing zinc market in India.

In summary, Hindustan Zinc’s Q3 performance reflects its commitment to operational excellence, sustainability initiatives, and strategic investments for future growth in the metals and mining sector.