Hindustan Zinc Ltd, a key player in the Vedanta Group, reported impressive financial results for its fiscal fourth quarter, with profits soaring to ₹3,003 crore—a remarkable 47.35% increase from the ₹2,038 crore recorded during the same quarter last year. This surpasses analysts’ expectations, positioning the company favorably in the competitive metals market. Revenue from operations also showed significant growth, reaching ₹9,087 crore, marking a 20.37% rise compared to ₹7,549 crore in the previous fiscal year’s fourth quarter.
Strong Performance Driven by Market Dynamics
The surge in revenue is attributed to several key factors:
- Increased lead volumes
- Rising prices of zinc and silver
- A stronger U.S. dollar
Additionally, Hindustan Zinc achieved an impressive EBITDA of ₹4,816 crore, reflecting a 32% year-over-year increase. Notably, the company reported its lowest zinc production cost in 16 quarters, at $994 per metric ton, which is 5% lower than the previous year’s costs.
Q4 Earnings vs. Market Expectations
A recent poll by CNBC TV18 had predicted a profit of ₹2,615 crore for Hindustan Zinc in Q4, with revenue expectations set at ₹8,835 crore. The actual results exceeded these estimates, showcasing the company’s resilience and operational efficiency.
Fiscal Year 2025 Highlights
In terms of annual performance, Hindustan Zinc achieved its second-highest revenue ever, totaling ₹34,083 crore, with an 18% increase year-over-year. The profit for FY25 reached ₹10,353 crore, up 33% from the previous year. The company also reported a robust free cash flow of ₹13,784 crore. Remarkably, Hindustan Zinc recorded historic production levels, mining 1,095 kilotons of metal and refining 1,052 kilotons.
Leadership Insights
Arun Misra, the Chief Executive Officer, emphasized the company’s operational milestones: “This year, Hindustan Zinc achieved its highest-ever production levels in both mined and refined metals. Our success stems from enhanced operational efficiencies, the integration of AI, and a commitment to digitalization and automation, which have contributed to sustainable cost reductions and industry-leading profit margins.”
Sandeep Modi, the Chief Financial Officer, shared reassuring insights regarding the company’s stability amid global uncertainties: “Despite challenges such as market volatility from ongoing trade tensions, our fundamentals remain strong. With a robust balance sheet, a leaner cost structure, and a clear strategic vision, Hindustan Zinc is well-equipped to manage external challenges and maintain consistent, industry-leading returns.”
Healthy Liquidity Position
As of March 31, 2025, Hindustan Zinc maintained a solid liquidity status, with gross investments and cash equivalents totaling ₹9,482 crore in high-quality debt instruments. The company’s total borrowings stood at ₹10,651 crore, with net debt significantly reduced to ₹1,169 crore, down from ₹4,117 crore as of December 31, 2024.
Future Outlook
In its post-earnings briefing, Hindustan Zinc projected resilience in zinc and lead prices, even amid anticipated market surpluses. The management also highlighted potential sustained deficits in silver supply due to its increasing industrial applications, particularly in renewable energy, automotive, electronics, and the burgeoning 5G sector.
In summary, Hindustan Zinc’s recent financial performance not only reflects its operational excellence but also sets a solid foundation for future growth, positioning it as a leader in the metals industry.
