Sales at Hindustan Zinc fell by 22% year over year in the first quarter, while the company's net profit fell by 36% to 1,964 crore.

Hindustan Zinc's net profit during the first quarter of FY24 fell by 36.5% to 1,964 crore from 3,092 crore in the corresponding period of the previous year as a result of dropping metal prices, a loss that was attributed to the industry's general downturn.

Sales for the firm fell 22.4% year over year (YoY) in the first quarter of FY24, from $9,387 to $7,282 crore. A decline in top line was brought on by lower zinc and lead LME, reduced lead volumes, and a clear effect from strategic hedging.
Throughout the quarter, Hindustan Zinc's operational performance deteriorated as well. In the quarter ending in April and June 2023, EBITDA (earnings before interest, taxes, depreciation, and amortization) decreased by 34.8% to $3,347 billion from $5,137 billion, while the EBITDA margin decreased by 870 basis points (bps) to 46% from 54.7%.
Sandeep Modi, the CFO of Hindustan Zinc, stated that "despite macroeconomic headwinds moderating base metal prices, Hindustan Zinc had a positive start to the year with a strong operational performance, attributable to consistent cost optimisation efforts and operational efficiencies, thereby protecting margins."
The business produced the most mined metal ever in the first quarter at 257 kt, a 2.1% YoY increase, because to increased ore production, particularly at the Rampura Agucha & Kayad mines, supported by better mined metal grades and enhanced mill recovery.
Production of refined metals for the quarter was 260 kt, unchanged year over year and down 4% sequentially in accordance with plant availability. Production of integrated zinc totaled 209 kt, up 1.4% year over year but down 2.9% sequentially.
In accordance with plant availability, integrated lead output for the quarter decreased by 5.7% YoY and 6.3% sequentially to 51 kt.
According to a press statement from the business, saleable silver output for the quarter was 179 MT, up 1.2% YoY but down 1.6% sequentially due to lead metal production and greater WIP depletion.
We continue to retain our cost leadership in the worldwide zinc cost curve, Modi said, noting that the first quarter's cost of production has just decreased sequentially for the first time.
Hindi language:
पहली तिमाही में हिंदुस्तान जिंक की बिक्री में साल दर साल 22% की गिरावट आई, जबकि कंपनी का शुद्ध लाभ 36% गिरकर 1,964 करोड़ हो गया।
