Hindustan Zinc shines with 32% YoY PAT growth in Q3 FY25! Strong operational performance and sustainability leadership pave the way for future success.

Hindustan Zinc Q3 FY25: Delivering Strong Growth and Sustainability Leadership

Hindustan Zinc’s Q3 FY25 results underscore its consistent performance as a leader in the metals and mining sector. The company has reported robust financials, operational efficiency, and progress toward sustainability, positioning it as a standout player in the industry. Here’s an overview of the highlights:

Financial Performance: Robust Growth Across Metrics

Hindustan Zinc demonstrated significant growth in Q3 FY25:

• Revenue: ₹8,614 crore, up 18% YoY and 4% QoQ.
• Profit After Tax (PAT): ₹2,678 crore, an impressive 32% YoY increase and 15% QoQ growth.
• EBITDA: ₹4,539 crore, marking a 28% YoY rise with a healthy margin of approximately 53%.
• Free Cash Flow (Pre-Capex): ₹2,628 crore, reflecting the company’s ability to generate strong cash flows.
• Earnings Per Share (EPS): Improved to ₹6.34, a 32% YoY growth.

For the first nine months of FY25, Hindustan Zinc’s revenue reached ₹24,996 crore, with PAT at ₹7,350 crore and EBITDA at ₹12,649 crore, showcasing sustained growth.

Operational Excellence and Cost Efficiency

The company’s record mined and refined metal production during 9M FY25 reflects its operational capabilities. Additionally, a 5% YoY reduction in Zinc Cost of Production (COP) to $1,041/t highlights effective cost management driven by:

• Improved mined metal grades.
• Increased domestic coal utilization.
• Renewable energy adoption.

Sustainability Leadership

Hindustan Zinc continues to set benchmarks in sustainability:

• Achieved first rank in the S&P Global Corporate Sustainability Assessment for the second consecutive year.
• Significant progress on renewable energy initiatives, circular economy practices, and biodiversity conservation.
• Reduction in greenhouse gas intensity and increased water recycling further underline the company’s commitment to environmental stewardship.

Shareholder Value Creation

Hindustan Zinc has prioritized shareholder returns through:

• A dividend payout of ₹12,000 crore.
• Strong capital appreciation, with total returns outperforming major indices.

Strategic Outlook

To capitalize on growth opportunities, the company is focused on:

1. Expanding mining and smelting capacities.
2. Driving production efficiency through innovation and sustainability.
3. Leveraging demand for zinc and silver in renewable energy, automotive, and electronics sectors.

Key Risks to Monitor

• Dependency on commodity price fluctuations.
• Regulatory challenges in mining and environmental compliance.
• Operational hurdles in scaling up capacities.

Conclusion

Hindustan Zinc’s Q3 FY25 results reinforce its reputation as a market leader. With its focus on sustainability, cost efficiency, and strategic expansion, the company is well-poised for continued success. Investors and stakeholders can look forward to Hindustan Zinc’s sustained value creation and contributions to a greener future.