Hindustan Zinc reported a 19.4% increase in net profit for the April-June quarter, totaling 23.45 billion rupees ($280.1 million). This marks the company’s first profit rise after six consecutive quarters of decline, attributed to higher zinc prices and increased demand. Analysts had anticipated a profit of 22.83 billion rupees.
The prices of zinc, lead, and silver have shown significant growth during the quarter, with yearly increases ranging from 5% to 19%, driven by supply shortages and rising demand. Hindustan Zinc holds approximately 75% of the domestic market share in the sector and recorded a 14% rise in zinc sales.
Overall revenue rose by 11% to 78.93 billion rupees, supported by an 11.4% increase in revenue from the zinc and lead business. The company, which is the world’s third-largest silver producer, also reported a 10% growth in silver sales.
Analysts suggest that the ongoing transition to renewable energy is likely to boost demand for base metals like zinc, potentially leading to further price increases in FY25. Additionally, Vedanta, Hindustan Zinc’s parent company, recently received approval from its secured creditors for the demerger of the company into six independent entities.