Hindustan Zinc Q3 Results: PAT falls 20% to Rs 2,156 crore, interim dividend of Rs 13 approved

Vedanta group firm Hindustan Zinc has reported a net profit of Rs 2,156 crore, down 20% year-on-year for the December quarter. The company has also declared an interim dividend of Rs 13 per share for the financial year 2022-2023.

The dividend will amount to about Rs 5,493 crore. The company has fixed a record date of January 30 for the purpose of payment of a third interim dividend to eligible shareholders.

Sequentially, the profit was down 19.6%, mainly on account of lower EBITDA.

Revenue from operations during the quarter fell 2% to Rs 7,866 crore during the period under review. The decline in revenues was mainly due to lower LME coinciding with lower refined metal and silver volumes.

“Hindustan Zinc delivered best-ever 9 months refined metal on the back of the highest ever mined metal. In FY22, we reached the one million tonne mined metal landmark, and this year with the current run-rate, we are confident of achieving the one million tonne refined metal mark and are fully geared to deliver another stellar annual performance," said Arun Misra, CEO, Hindustan Zinc.

EBITDA (earnings before interest, taxes, depreciation and amortisation) for the quarter came in at Rs 3,717 crore, a decline of 15% year-on-year.

On Thursday, Hindustan Zinc stock closed 4.28% higher at Rs 376.80 on the NSE.

The company has informed the exchanges that Kiran Agarwal, Chairperson and director of the company, had stepped down from the board. Following this, the board had considered and approved the appointment of Priya Agarwal as additional director and chairperson of the company with immediate effect, subject to approval of the shareholders.

“With softening of coal cost and ongoing structured cost optimisation plan targeted with operational efficiencies, we are confident to deliver yet another stellar financial performance and continue to maintain our cost leadership in the global cost curve," said Sandeep Modi, Deputy & Interim CFO.

On the operational front, mined metal production for the quarter was at 254 kt (kilo tonne), marginally up from previous year period, driven by higher ore production. The company has clocked highest-ever nine months mined metal production at 761 kt, led by higher ore production, improved mined metal grades and operational efficiency.

Zinc production during the quarter was at 210 kt, down 1.7% year-on-year, while Lead production was at 46 kt, lower by 1.4% year-on-year.