One of the top mining firms in India, Hindustan Zinc Ltd., released its Hindustan Zinc Q2 Results 2024, showcasing outstanding financial performance for the second quarter of the fiscal year 2024–2025. When compared to the same quarter last year, the company’s consolidated net profit increased by 34.6% to ₹2,327 crore. This remarkable accomplishment demonstrates Hindustan Zinc’s capacity to manage market obstacles while maximising operational effectiveness.
Hindustan Zinc’s net profit was ₹1,729 crore in the same quarter of the prior fiscal year, which is a notable improvement from the previous year. In addition, the operations revenue climbed 20.9%** to ₹8,004 crore from ₹6,619 crore during the same period last year. These impressive financial outcomes highlight Hindustan Zinc’s ongoing supremacy in the mining industry in India.
EBITDA Growth and Margins
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for Hindustan Zinc increased 31% to ₹4,123 crore in Q2 FY25 from ₹3,139 crore in the same quarter of the prior fiscal year. The company’s growing operational efficiency, cost control, and capacity to take advantage of advantageous market conditions are all reflected in this strong EBITDA increase.
In Q2 of FY25, the EBITDA margin increased to 50% from 46.2% in the same time the previous year. This indicates a notable increase in the company’s profitability by demonstrating its capacity to control operating costs while increasing sales. Hindustan Zinc Q2 Results 2024.
Mined Metal Production and Operational Highlights
With a 2% year-over-year (YoY) rise, Hindustan Zinc posted its highest-ever second-quarter mined metal production of 256 kilo tonnes (KT). Higher ore output at the Zawar Mine is responsible for this growth, even if the production decreased 2% on a quarter-over-quarter (QoQ) basis as a result of lower overall mined metal grades. Hindustan Zinc Q2 Results 2024.
These excellent operational outcomes have been largely fuelled by the company’s effective mining operations and calculated investments in increasing production capacity. The Zawar Mine of Hindustan Zinc is still a vital component of its production capacity and played a major role in the company’s Q2 FY25 success. Hindustan Zinc Q2 Results 2024.
Free Cash Flow and Investments
In Q2 FY25, Hindustan Zinc had a robust free cash flow from operations, with ₹3,605 crore (pre-capex of ₹1,004 crore). This is a reflection of the company’s strong operational success and outstanding cash generation ability. With an amazing ₹7,948 crore in cash and cash equivalents and gross investments as of September 30, 2024, Hindustan Zinc has a solid liquidity position for future expansion and capital expenditures. Hindustan Zinc Q2 Results 2024.
Stock Performance: Shares Rise After Results
Hindustan Zinc’s stock price saw a positive increase after the Q2 results were announced. The company’s shares increased 0.8% to ₹512.55 on the National Stock Exchange (NSE) and 1% to ₹513.25, respectively, on the Bombay Stock Exchange (BSE).
With a 60.6% year-to-date (YTD) gain and a 3.2% increase in the last month, Hindustan Zinc has produced impressive returns for its investors over the last 12 months. Investor trust in the company’s potential for long-term growth and value delivery is reflected in this stock performance. Hindustan Zinc Q2 Results 2024.
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Key Financial Metrics at a Glance
- Net Profit: ₹2,327 crore, up 34.6% YoY
- Revenue from Operations: ₹8,004 crore, up 20.9% YoY
- EBITDA: ₹4,123 crore, up 31% YoY
- EBITDA Margin: 50%, improved from 46.2% in Q2 FY24
- Free Cash Flow from Operations: ₹3,605 crore (pre-capex ₹1,004 crore)
- Gross Investments and Cash Equivalents: ₹7,948 crore as of September 30, 2024
Conclusion
Hindustan Zinc’s performance in Q2 FY25 has been nothing short of exceptional, with strong growth across all key financial metrics. The company has not only achieved its highest-ever second-quarter mined metal production but has also significantly improved its profitability through enhanced operational efficiency. With a solid free cash flow position and growing investor confidence, Hindustan Zinc is well-positioned for continued success in the future.
The stock’s rise following the earnings announcement is a testament to the market’s positive sentiment toward the company. As Hindustan Zinc continues to deliver solid results, it remains a key player in the Indian mining sector, driving shareholder value and sustainable growth. Hindustan Zinc Q2 Results 2024.
Frequently Asked Questions
1. What was Hindustan Zinc’s net profit for Q2 FY25?
Hindustan Zinc posted a net profit of ₹2,327 crore in Q2 FY25, representing a 34.6% increase compared to ₹1,729 crore in the same quarter of the previous fiscal year. Hindustan Zinc Q2 Results 2024.
2. How much revenue did Hindustan Zinc generate in Q2 FY25?
The company’s EBITDA for Q2 FY25 stood at ₹4,123 crore, a 31% increase from ₹3,139 crore in the previous fiscal year. Hindustan Zinc Q2 Results 2024.
3. How much free cash flow did Hindustan Zinc report for Q2 FY25?
Hindustan Zinc reported a robust free cash flow from operations of ₹3,605 crore for Q2 FY25, before capital expenditures (capex) of ₹1,004 crore. Hindustan Zinc Q2 Results 2024.
4. What was Hindustan Zinc’s stock performance following the Q2 results?
Following the announcement of Q2 FY25 results, Hindustan Zinc’s stock rose by 0.8% to ₹512.55 on the NSE and gained 1% to ₹513.25 on the BSE. The stock has gained 60.6% year-to-date. Hindustan Zinc Q2 Results 2024.
