Hindustan Zinc Q1 results: Net profit falls 36% to ₹1,964 crore on lower metal prices; revenue drops 22% YoY

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₹1,964 crore from ₹3,092 crore in the corresponding quarter of last year, impacted due to lower metal prices.  The company’s revenue in Q1FY24 declined 22.4% to ₹7,282 crore from ₹9,387 crore, on an year-on-year (YoY) basis. Topline fell on account of lower zinc and lead LME, lower lead volumes and differential strategic hedging impact.

Operational performance of Hindustan Zinc also deteriorated during the quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) in April-June 2023 quarter decreased 34.8% to ₹3,347 crore from ₹5,137 crore, while EBITDA margin weakened by 870 basis points (bps) to 46% from 54.7%.

Also Read: UltraTech Cement Q1 Results: Net profit rises 6.6% on year to ₹1,688.45 crore “Amidst the macro-economic headwinds moderating the base metal prices, Hindustan Zinc had a positive start of the year with a strong operational performance, attributable to consistent cost optimisation efforts and operational efficiencies, thereby protecting margins," said Sandeep Modi, CFO, Hindustan Zinc. The company reported highest-ever first quarter mined metal production at 257 kt, an increase of 2.1% YoY on account of higher ore production largely at Rampura Agucha & Kayad mines supported by improved mined metal grades and better mill recovery.  Also Read: JSW Steel Q1 Results: Net profit soars 179% on year to ₹2,338 crore, stock hits 52-week high Refined metal production was 260 kt for the quarter, flat YoY and down 4% sequentially in line with plant availability.

Integrated zinc production was 209 kt, up 1.4% YoY and down 2.9% sequentially.  Integrated lead production for the quarter was down 5.7% YoY and 6.3% sequentially at 51 kt, in line with plant availability. Saleable silver production for