Hindustan Zinc Lowers Full-Year Cost Guidance After Record September Quarter Profits
Hindustan Zinc Limited (NSE:HINDZINC) reported record financial results for the September quarter and lowered its full-year zinc production cost forecast. Consolidated revenue rose 77% year-on-year to 15,093 crore, while net profit jumped 142% to 6,412 crore. Earnings before interest, tax, depreciation, and amortization more than doubled to 9,285 crore, propelled by strong operational performance and higher metal realizations.
The company now expects its full-year cost of zinc production to fall to $825-$850 per tonne, down significantly from its previous forecast of $975-$1,000 per tonne set in April. Cost savings were primarily driven by elevated by-product earnings stemming from global supply disruptions. Additionally, the silver business delivered strong growth, generating 45% of total profitability as segment sales surged 141% year-on-year alongside a 59% rise in average silver prices.
Management warned that second-half costs could rise from September quarter levels of $703 per tonne due to input price inflation, potential drops in sulphuric acid prices, and high energy costs, which added roughly $50 per tonne to expense levels. Investors will also monitor how the miner utilizes its remaining 120 tonnes of annual silver production capacity above its 680-tonne annual target.
Key points
- Hindustan Zinc's September quarter net profit surged 142% year-on-year to 6,412 crore on record revenue of 15,093 crore.
- Full-year zinc production cost guidance was lowered to $825-$850 per tonne from an earlier range of $975-$1,000 per tonne.
- High by-product realisations fueled cost reductions, while elevated energy costs added roughly $50 per tonne in expenses.
- Silver operations contributed 45% of total company profit as silver segment sales increased 141% year-on-year.
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What were Hindustan Zinc's financial results for the September quarter?
Hindustan Zinc reported record consolidated revenue of 15,093 crore, up 77% year-on-year, and net profit of 6,412 crore, up 142% year-on-year for the September quarter.
What is Hindustan Zinc's revised zinc production cost guidance?
The company expects full-year zinc production costs to range between $825 and $850 per tonne, down from its earlier forecast of $975 to $1,000 per tonne.
How did the silver segment impact Hindustan Zinc's profitability?
The silver business generated 45% of total company profitability during the September quarter, supported by a 141% surge in segment sales and a 59% rise in average silver prices.