Hindustan Zinc Ltd (HZL), a Vedanta group company, reported a 21 per cent decline in its consolidated net profit for the quarter ended March 31, 2024, primarily due to lower zinc prices. The company’s net profit stood at Rs 2,038 crore, down from Rs 2,583 crore in the same quarter of the previous fiscal year.
Despite the drop in net profit, HZL highlighted a 11 per cent cost improvement and a 5 per cent increase in silver volume as positive aspects of its performance during the quarter. The company’s consolidated income also decreased to Rs 7,822 crore from Rs 8,863 crore in the year-ago period.
Reflecting on the fiscal year 2023-24, HZL’s Chief Executive Officer Arun Misra mentioned that it was a year of solid growth for the company, with record production levels in mined metal, refined metal, and silver. The company emphasized its focus on silver and metal production, as well as cost optimization to navigate market challenges and preserve margins.
In the last financial year, HZL contributed Rs 13,197 crore to the government treasury and generated a cash flow of Rs 2,099 crore in the fourth quarter of FY24. The company’s robust free cash flow from operations post capex of Rs 9,004 crore for the fiscal year demonstrates its financial stability.
As a leader in the zinc, lead, and silver businesses, Hindustan Zinc holds a significant market share in India and is the world’s third-largest silver producer. With its headquarters in Udaipur and mining operations spread across Rajasthan, the company continues to focus on growth and profitability amidst market fluctuations.
