Hindustan Zinc Reports Stellar Q4 Results: Profit Soars 68% YoY to ₹5,033 Crore with ₹11 Dividend Announced
In a remarkable financial performance, Hindustan Zinc, a subsidiary of Vedanta, has reported a 68% year-on-year increase in consolidated profit for Q4, reaching ₹5,033 crore. The company also announced a substantial interim dividend of ₹11 per share, reflecting its strong financial health and commitment to shareholder returns.
Hindustan Zinc Q4 Results: A Record-Breaking Performance
Hindustan Zinc, the largest integrated zinc producer globally and a key player in the Vedanta Group, has unveiled its impressive financial results for the fourth quarter of FY27. The company reported a staggering 68% year-on-year (YoY) increase in consolidated profit, amounting to ₹5,033 crore, compared to ₹3,003 crore in the same quarter last year.
Revenue Growth
The company’s revenue surged to ₹13,544 crore, marking a 49% increase from ₹9,087 crore in the corresponding quarter of the previous financial year. This remarkable growth is attributed to robust operational performance and strategic initiatives that have enhanced production capabilities.
Dividend Announcement
In a move to reward its shareholders, Hindustan Zinc declared its first interim dividend of ₹11 per equity share for FY27, with a total payout of ₹4,648 crore. The record date for this dividend has been set for April 30, providing a timely boost to investor confidence.
Stock Market Reaction
Following the announcement of its Q4 earnings, Hindustan Zinc’s shares showed resilience, recovering from an intraday low of ₹572.80 to trade at ₹584.65 on the NSE, although still down 1.26% from the previous close.
Operational Highlights
The company achieved a remarkable 61% YoY growth in its earnings before interest, taxes, depreciation, and amortization (EBITDA), totaling ₹7,747 crore. This performance was driven by record production levels, with 315 kilotonnes (kt) of mined metal and 282 kt of refined metal produced during the quarter.
Hindustan Zinc also reported its lowest-ever cost of production at $903 per tonne, reflecting a 9% YoY improvement. Additionally, the company produced 176 tonnes of silver, achieving an 11% quarter-on-quarter growth.
Management Insights
Sandeep Modi, Chief Financial Officer of Hindustan Zinc, expressed pride in the company’s record quarter and full-year performance. "We have marked a historic full-year net profit of ₹13,832 crore, up 34% YoY, driven by disciplined capital allocation and strong free cash flow. This reinforces our balance sheet strength as we enter the next phase of growth, HZL 2.0. With continued strength in cost leadership and industry-leading margins, we are well-positioned to translate growth opportunities into sustained value creation," Modi stated.
Conclusion
Hindustan Zinc’s impressive Q4 results not only highlight its operational excellence but also its commitment to delivering value to shareholders. As the company gears up for future growth, investors and market analysts will be keenly watching its strategic initiatives and performance in the upcoming quarters.