Hindustan Zinc, one of India’s leading producers of zinc, lead, and silver, has recently announced its fourth-quarter results for the financial year 2022. The company reported a decline in net profit by 12% to Rs 2,583 crore, as compared to the same period in the previous year.
The company’s revenue for Q4 2022 stood at Rs 7,142 crore, a marginal increase of 1% from Rs 7,070 crore in Q4 2021. Hindustan Zinc’s earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter were Rs 3,445 crore, down by 9% from Rs 3,776 crore in Q4 2021.
The decline in the company’s net profit can be attributed to the decrease in the zinc prices globally. The average zinc price on the London Metal Exchange (LME) for the quarter was $2,726 per tonne, a decline of 6% from the same period in the previous year. Zinc prices have been impacted by factors such as the COVID-19 pandemic, trade tensions, and global economic uncertainty.
However, Hindustan Zinc’s production of mined metal in Q4 2022 increased by 6% to 244,000 tonnes, as compared to 231,000 tonnes in Q4 2021. The increase in production was due to higher ore production and improved operational efficiencies. The company’s mined metal production for the full financial year 2022 was 918,000 tonnes, a decrease of 4% from 954,000 tonnes in the previous year.
Hindustan Zinc’s refined zinc production for Q4 2022 was 201,000 tonnes, up by 3% from 195,000 tonnes in Q4 2021. The increase in production was due to the higher availability of mined metal and improved operational efficiencies. The company’s refined zinc production for the full financial year 2022 was 759,000 tonnes, a decrease of 2% from 775,000 tonnes in the previous year.
The company’s silver production for Q4 2022 was 178 tonnes, down by 1% from 180 tonnes in Q4 2021. The company’s silver production for the full financial year 2022 was 647 tonnes, a decrease of 7% from 696 tonnes in the previous year. The decrease in silver production is due to lower ore grades and higher costs associated with extraction. Going forward, the company expects silver production to gradually increase as it re-aligns its operations to improve efficiency and cost savings. The company is committed to providing sustainable and environment-friendly solutions while maximizing operational profitability.
Hindustan Zinc’s CEO, Arun Misra, stated, “Our strong operational performance in the quarter and the year helped us deliver a resilient financial performance. We continue to prioritize the safety and health of our workforce while maintaining our focus on operational efficiencies and cost optimization. Our growth projects are progressing well, and we remain confident in the long-term demand for zinc and silver.”
The company’s Board of Directors has recommended a final dividend of Rs 21.30 per equity share for the financial year 2022. The total dividend for the financial year 2022 stands at Rs 38.10 per equity share, including the interim dividend of Rs 16.80 per equity share paid in February 2022.
Hindustan Zinc is a subsidiary of Vedanta Limited and operates one of the world’s largest zinc mines at Rampura Agucha in Rajasthan. The company’s other operations include the Sindesar Khurd and Rajpura Dariba mines, as well as a zinc-lead smelter at Chanderiya in Rajasthan.
In conclusion, Hindustan Zinc’s Q4 results indicate a decline in net profit due to the decrease in global zinc prices. However, the company’s production of mined metal and refined zinc increased, demonstrating the company’s operational efficiencies. Moreover, Hindustan Zinc’s cost reduction measures coupled with its strong product portfolio enabled the company to maintain a steady margin despite the decline in prices. Going forward, the company is set to benefit from India’s growing economy and global zinc market improvements.
