Hindustan Zinc, the world’s second largest integrated zinc producer and world’s third largest silver producer, reported its results for the third quarter and nine months ended December 31, 2024. The company recorded its highest-ever nine months mined and refined metal production at 784 kt and 783 kt respectively. The company clocked best-ever third quarter revenue of Rs 86 billion, up 18 per cent year-on-year. Hindustan Zinc also registered historic best third quarter EBITDA of Rs 45.39 billion, up 28 per cent with an industry leading EBITDA margin of c. 53 per cent, up c. 400 bps year-on-year. During the quarter in question, the company also recorded its highest profit after tax (PAT) in the past nine quarters of INR 2,678 crores, up 32 per cent year on year. Hindustan Zinc generated strong Free Cash Flow from operations (pre-capex) of Rs 26.28 billion during the quarter along with the lowest cost of production (COP) in the last 15 quarters at $1,041/MT in Q3. Currently, Hindustan Zinc is one of the largest metal companies in India with market capitalization of Rs 1880 billion and total shareholder returns of c.INR 181/share (c.62%).

Commenting on Hindustan Zinc’s performance, Arun Misra, Chief Executive Officer, said: “Hindustan Zinc continues to execute its strategic priorities effectively while driving operational excellence with an emphasis on ESG and continuous improvement. As a result, we have achieved our highest-ever production of mined and refined metals over the past nine months. This demonstrates the underlying strength of our assets and consistent performance, all further supported by positive market trends.

Strengthening its position as a leader in the energy transition metals sector, I am proud to share that Hindustan Zinc has been recognized as world’s most sustainable metals and mining company for the second consecutive year by the S&P Global Corporate Sustainability Assessment 2024. This achievement highlights a fourth consecutive year of improvement in our overall score, underscoring our dedication to sustainability, fostering positive social impact, and ensuring governance excellence.”

Sandeep Modi, Chief Financial Officer, said: “Our commitment to operational excellence and cost management is yielding stronger financial results. Hindustan Zinc achieved its highest-ever third-quarter EBITDA and a 9-quarter best PAT. During this period, the company also recorded its lowest cost of production in last 15 quarters at $1,041 per tonne, positioning us well to reach a full-year cost of production at the lower end of our guidance range.

In line with the government’s initiative to empower the MSME sector, the company prioritized payments to MSME vendors, achieving an average payment cycle of 18 days—60% faster than the statutory requirement. This demonstrates our dedication to ESG principles and reinforces trust in our supply chain by promoting greater social responsibility. With a robust balance sheet, we are well-positioned to execute our growth strategy and create value for shareholders through sustained operational excellence and cost-cutting efforts.”