Hindustan Zinc Q3 Results: Net profit rises 32% YoY to ₹2,678 crore, total income up 16%

PSU firm Hindustan Zinc announced its December quarter (Q3FY25) results on Tuesday, January 28. The company posted a net profit of ₹2,678 crore, up 32 percent as against ₹2,028 crore in the same period last year. Sequentially, its profit rose 15 percent from ₹2,327 crore in the September quarter. The profit growth was driven by metal volume, cost reduction and market tailwinds, it said.

Meanwhile, its total income also jumped over 16 percent to ₹8,832 crore from ₹7,606 crore in the year-ago period. On a QoQ basis, it increased 3.6 percent from ₹8,522 crore in Q2FY25.

EBITDA for the third quarter improved 27 percent YoY to ₹4,460 crore. Margins during the same period improved to 54 percent against 49.8 percent in the year-ago period.

The company’s mined metal production for Q3 stood at 265 kt, up 3 percent sequentially, primarily attributed to improved metal grades and increased output at the Agucha and Zawar mines. Refined metal production during the quarter was recorded at 259 kt, flat on a year-on-year basis and marginally lower quarter-on-quarter due to a planned maintenance shutdown.

On a nine-month basis, Hindustan Zinc achieved mined metal production of 784 kt and refined metal production of 783 kt, supported by enhanced metal grades and better mill recovery rates.

Hindustan Zinc generated a pre-capex operating cash flow of ₹2,628 crore in Q3, achieving the lowest cost of production in the last 15 quarters at $1,041 per tonne. For the nine months ended December 2024, the company posted revenues of ₹24,212 crore and a profit of ₹7,350 crore, alongside a robust pre-capex free cash flow of ₹9,664 crore.

Management Commentary

Arun Misra, CEO, remarked, “Hindustan Zinc continues to effectively execute its strategic priorities while driving operational excellence, emphasizing ESG and continuous improvement. We have achieved record-high mined and refined metal production over the past nine months, showcasing the strength of our assets and consistent performance, further supported by favorable market conditions.”

CFO Sandeep Modi added, “Our focus on operational efficiency and cost management has translated into stronger financial outcomes. The company achieved its highest-ever third-quarter EBITDA and a nine-quarter best PAT. Additionally, the cost of production at $1,041 per tonne in Q3 is the lowest in 15 quarters, positioning us to meet the lower end of our full-year cost guidance.”

Post the earnings announcement, the PSU stock rose over 2 percent to its day’s high of ₹461.00.

Hindustan Zinc Ltd, a Vedanta Group company, is the world’s second-largest integrated zinc producer and the third-largest silver producer.