Conference Call with Hindustan Zinc Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
Hindustan Zinc announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Revenue from operations during the quarter was Rs 7,549 crore, up 3% QoQ on account of better zinc volumes, partly offset by lower lead & silver volumes and lower metal prices. Zinc cost of production before royalty (COP) for the quarter stood at USD 1,051 (Rs 87,284) per MT, lower by 4% QoQ and 13% YoY in both US$ and Rs terms. EBITDA for the quarter was Rs 3,637 crore, up 2% QoQ and down 14% YoY in line with the revenue from operations and cost. Net profit for the quarter stood at Rs 2,038 crore, marginally up sequentially and down 21% YoY. FY24 Financial Highlights: Revenue from operations for the full year stood at Rs 28,932 crore, down 15% YoY on account of lower zinc prices and volumes, and strategic hedging impact in base period partly offset by better silver & lead volumes and prices, and favourable exchange rates. Zinc COP for the full year was USD 1,117 (INR 92,470) per MT, down by 11% YoY (8% lower in Rs terms). For FY24, EBITDA was Rs 13,677 crore, down 22% YoY, mainly on account of lower revenue partly offset by cost improvement. FY24 net profit was at Rs 7,759 crore, down 26% YoY, primarily on account of lower EBITDA partly offset by lower tax expense. Total Reserves & Resources (R&R;) as on March 31, 2024 stood at 456.3 million tonnes containing metal of 30.8 million tonnes (net of production of 1.1 million tonnes in FY24). Total ore reserves stand at 175.1 million tonnes (net of production of 16.5 million tonnes in FY24) at the end of FY24 (173.5 million tonnes at the end of FY23) led by continued focus on resource to reserve conversion during the year. Commenting on the results, Arun Misra, CEO said, "FY 2023-24 has been a year of solid growth for HZL, with mined metal, refined metal, and silver recording its highest historic production levels, supported by a backdrop of fatality-free operations. As part of our strategy, it was driven by our increased focus on silver & metal production and cost optimisation. The company withstood the market headwinds during the year, ensuring the preservation of margins and shareholder value. Fueled by our robust silver maximisation strategy, I am thrilled to announce that HZL has now become the 3rd largest silver producer globally. Additionally, during the quarter, HZL also incorporated ‘Hindmetal Exploration Services Private Limited’, as a wholly owned subsidiary, with an objective to explore, discover, develop and tap mineral resources aligning with the national focus and vision. Our commitment on the sustainability efforts remains robust. I am happy to share that our renewable energy (RE) power delivery agreement of 450 MW is advancing well and the first flow of RE power is now preponed and expected to begin in April’24, contributing to our journey towards achieving net zero targets. Our company has been awarded the CII National HR Excellence Award underscoring our exemplary people practices. With the full implementation of commissioned projects, HZL is poised for another exceptional year ahead.” Commenting on the results, Mr. Sandeep Modi, CFO, said, “Despite the plunging metal prices, HZL has consistently sustained its margin at a steady 47% by recording its fifth consecutive quarter of sustained cost reduction, clocking the lowest cost in last 3 years. This demonstrates the effectiveness of our agile decision-making strategy, with instances such as maximization of silver production leveraging the soaring silver prices, power plant modifications ensuring better linkage coal consumption thereby lowering the power costs along with operational & commercial efficiencies. I firmly believe that the challenges encountered throughout the year have strengthened our resilience and fortitude, propelling us to strive for even greater performance in the upcoming year towards our aspired annual targets and strong balance sheet.” Result PDF