Hindustan Zinc Reports Strong Production Growth in Q2 FY 2025
On October 2, the Vedanta Group’s subsidiary, Hindustan Zinc, announced a remarkable surge in production for the second quarter of the current financial year. The company reported a 2% year-on-year increase in ‘mind metal’ production, bringing the total to 256,000 tonnes compared to 252,000 tonnes in the corresponding period last year.
Production Highlights
In its regulatory filing, Hindustan Zinc highlighted several key performance metrics:
- Refined Metal Production: Increased to 262,000 tonnes, up from 241,000 tonnes year-on-year.
- Refined Zinc Production: Rose by 7% to 198,000 tonnes compared to the previous fiscal year.
- Refined Lead Production: Experienced a significant 12% increase, totaling 63,000 tonnes.
- Marketable Silver Production: Grew by 2% year-on-year, reaching 5.9 million ounces.
Renewable Energy Performance
Despite overall production gains, Hindustan Zinc faced challenges in its wind power generation, which fell by 18% year-on-year to just 129 Million Units (MU). This decline emphasizes the ongoing struggles within the renewable energy sector, even as the company shines in its core mining operations.
Dividend and Government Revenue
Hindustan Zinc’s board has been generous to its shareholders, declaring a second interim dividend of Rs 19 per share on August 20. This followed an earlier declaration of a first interim dividend of Rs 10 per share. The government, which holds a 29.5% stake in the company, benefited significantly from this dividend, receiving approximately Rs 2,400 crore, which accounts for 30% of the special dividend issued as non-tax revenue.
Conclusion
As the second largest zinc producer globally and the third largest silver producer, Hindustan Zinc continues to solidify its foothold in the metals market. The production increments across various segments signal strong operational performance, and the commitment to shareholder returns reflects the company’s robust financial health. Going forward, investors and stakeholders will be keen to see how Hindustan Zinc navigates the complexities of both market demands and energy production challenges.
