Hindustan Zinc Q4 net profit declines by 21% to ₹2,038 crore, shares slide 1.5% post results

Hindustan Zinc—the country's only integrated producer of zinc, lead and silver—reported a weak set of numbers in Q4FY24 as well as for the full year FY24

Q4FY24 performance

The company’s net profit for the quarter fell by 21% YoY to ₹2,038 crore. The decline in profit was due to a fall in zinc prices globally as demand is growing at a slower pace than supply.

Meanwhile, the company’s revenue declined by 11.7% year-on-year (YoY) to ₹7,822 crore in Q4FY24. The drop in revenue was largely led by weak realisations in the zinc, lead and silver mining business, which declined by 16% YoY.

On the operational front, the company reported a 14% YoY drop in EBITDA for the quarter at ₹3,922 crore. The margins for the quarter also contracted to 50% vs 52% in Q4FY23.

FY24 performance

The company’s revenue for FY24 declined by 15% YoY to₹28,098 crore. The EBITDA for the year also declined by 6.4% YoY to ₹13,658 crore. While the margins for the year saw a major contraction of 400 bps at 47.2% vs 51.3% in FY23. Lastly, the net profit for the company declined by 26.1% YoY to ₹7,759 crore.

Hindustan Zinc shares closed 1.54% lower at ₹398.70 on April 19, after Q4 results were declared.

Hindustan Zinc is a subsidiary of Vedanta Ltd, which owns 64.9% stake in the company, and 29.5% stake is owned by the Government of India. The remaining 5.6% stake is owned by institutional investors and the individual investors, among others.

The company was ranked as the top metals and mining company in the Asia Pacific region by the Dow Jones Sustainability Index 2019.