 "Hindustan Zinc Q2FY25 results: Net profit up 34.6% at Rs 2,327 crore")
Hindustan Zinc (HZL) reported a 34.6 per cent rise in its net profit (attributable to the owners of the company) in the quarter ended September 2024 (Q2FY25) on the back of improved operational performance.
For the quarter under review, HZL reported a consolidated net profit of Rs 2,327 crore, up 34.6 per cent from a year ago. The company’s net sales for the same period rose 20.9 per cent to Rs 8,004 crore.
Sequentially, HZL’s net profit was flat, while net sales rose marginally by 1.4 per cent.
On HZL’s plans to demerge its businesses into separate entities, which requires central government approval, Arun Misra, chief executive officer of HZL, said the discussions are ongoing and the demerger remains under consideration. Misra, however, refused to offer a timeline or confirm if the demerger will be completed in the current financial year.
HZL met street expectations, as in a Bloomberg poll, four analysts estimated revenue of Rs 7,899 crore and net income adjusted to Rs 2,251 crore.
Ebitda margins, the company said, were over 50 per cent, its highest in the last eight quarters, and up 450 basis points from a year ago. Ebitda is earnings before interest, taxation, depreciation, and amortisation.
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Segment-wise, the company noted its domestic primary zinc market share jumped to 78 per cent from 71 per cent a year ago.
Sandeep Modi, chief financial officer of the company, said the performance was supported by favourable market conditions.
“Substantiating its drive towards continuing operational excellence and global cost leadership, HZL recorded a significant cost reduction of 7 per cent Y-o-Y in the first half of the financial year, clocking a cost of production of $1,071 per tonne for the quarter,” he said. Modi added that the latest execution of a third renewable power delivery agreement with Serentica, increasing renewable energy (RE) power consumption (round-the-clock) to 70 per cent from the earlier 50 per cent, will further support cost reduction and its predictability.
“Substantiating its drive towards continuing operational excellence and global cost leadership, HZL recorded a significant cost reduction of 7 per cent Y-o-Y in the first half of the financial year, clocking a cost of production of $1,071 per tonne for the quarter,” he said. Modi added that the latest execution of a third renewable power delivery agreement with Serentica, increasing renewable energy (RE) power consumption (round-the-clock) to 70 per cent from the earlier 50 per cent, will further support cost reduction and its predictability.