Hindustan Zinc shares rise after company reports record production figures

Shares of Hindustan Zinc rose over 3% during Wednesday’s trade after the company reported record production numbers for the fourth quarter as well as for the fiscal.

The Vedanta Group company recorded its highest-ever quarterly refined metal production at 273 kt, which rose 6% sequentially over better plant availability. Refined zinc production rose 9% sequentially to 220 kt.

Hindustan Zinc also posted its best-ever mined metal production at 1,079 kt, which rose 2% on a year-on-year basis, driven by improved mined metal grades. Refined metal also achieved its highest annual production, the company said.

Meanwhile, silver recorded the highest volume in FY24, in line with management’s operational & financial strategy. Refined lead production stood at 216 kt, up 3% year-over-year. Silver recorded the highest volume during the fiscal, in line with management’s operational & financial strategy, at 24.0 million ounces (Moz), up 5% year-over-year. Refined lead production stood at 216 kt, up 3% y-o-y.

For the fourth quarter, the company said that wind power generation stood at 61 MU, up 11% sequentially and down 14% year-over-year.

Hindustan Zinc reported a 17% sequential rise in its net profit for the third quarter at ₹2,028 Crore, led by higher earnings before interest, tax, depreciation and amortisation (EBITDA) partly offset by higher tax expense. However, the net profit was down 6% on a y-o-y basis.

EBITDA for the quarter stood at ₹3,559 Crore, up 14% q-o-q and down 4% y-o-y, in line with the revenue from operations and cost improvement. According to the company, operating income during the quarter stood at ₹7,310 crore, up 8% q-o-q because of better zinc and silver volumes, higher zinc prices, and favourable exchange rates partly offset by lower lead prices and volumes.

Hindustan Zinc pointed out that the revenue witnessed a decline of 7% y-o-y due to significantly lower zinc prices, lower zinc volumes and strategic hedging impact in the base period partly offset by increased silver and lead volumes and prices and favourable exchange rates.

Shares of the company have surged over 10% in the last five days. Shares of Hindustan Zinc are currently trading 3.7% higher at ₹327 apiece on the NSE.