Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Q3 FY25 Earnings Presentation
30 slides from Hindustan Zinc's earnings presentation, Jan 28, 2025
Slide 1: Regulation 30 cover letter to stock exchanges
HZL/2024-25/SECY/172 January 28, 2025 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Plot No., C/l, G Block Dalal Street, Fort Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Kind Attn: General Manager – Department Kind
Slide 2: Hindustan Zinc Limited Earnings Presentation 3Q FY25
Hindustan Zinc Limited EARNINGS PRESENTATION 3Q FY25
Slide 3: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness, or reliability of this information. Any forw
Slide 4: Index of Contents
Index of Contents Section Page Unique positioning in in Metals & Mining and Energy Transition Space 4 Sustainability Update 6 Market Update and Operational Review 11 Financial Review 17 Appendix 22 3 HINDUSTAN ZINC LIMITED - Q3 FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 5: Unique Positioning in Metals & Mining and Energy Transition Space
Unique Positioning in Metals & Mining and Energy Transition Space India’s largest & only 3rd largest integrated producer of silver producer globally and India’s only zinc, lead and silver listed integrated precious metal company World’s 2nd largest integrated zinc World’s largest UG zinc mining prod
Slide 6: Global Leadership Positions
Global Leadership Positions World’s largest UG zinc mining operations World’s 2nd largest silver production at at Rampura Agucha Sindesar Khurd Rampura Agucha Mine 1 UG Mine 1 Sindesar Khurd UG Mine 2 Mine 2 UG Mine 3 Mine 3 UG Mine 4 Mine 4 World’s 2nd largest integrated zinc Among lowest cost zinc
Slide 7: Sustainability Update
- SUSTAINABILITY UPDATE
Slide 8: World Leader in Sustainability in Metals & Mining sector
World Leader in Sustainability in Metals & Mining sector Ranked 1st in 86 88 84 S&P Global CSA 2024 for 2nd consecutive year Environment Social Governance Achieved 100 Achieved 100 Achieved 100 Percentile: Percentile: Percentile: Ranked 1st • Environmental • Transparency & • Human Rights, Ranked 1st
Slide 9: Sustainability Goals 2025
Sustainability Goals 2025 Climate Change Water Stewardship Circular Economy Biodiversity Conservation 0.5 MtCO2e GHG Become 5x water positive 3x increase in gainful Protect and enhance emission savings in company and achieve utilization of smelting biodiversity throughout operations from 2017 25% re
Slide 10: Empowering Communities, Changing Lives
Empowering Communities, Changing Lives Benefitting over 1.95 million lives across 3,685 villages through 40+ initiatives across 7 verticals in FY25 Impact Across Verticals - Q3 Highlights c.₹ 38 lakhs & c.₹ 32 lakhs turnover recorded by the dairy microenterprise & mineral mixture unit, respectively
Slide 11: Metals of Future | Enabling the Energy Transition Needs
Metals of Future | Enabling the Energy Transition Needs Rising deployment of clean energy technologies is set to supercharge demand for critical minerals Zinc building a greener future Silver’s crucial role in achieving the net zero world Zinc plays a critical role in enabling green technologies suc
Slide 12: Market Update and Operational Review
MARKET UPDATE AND OPERATIONAL REVIEW Mr. Arun Misra CEO
Slide 13: Market Update - Base Metal | Zinc & Lead
Market Update - Base Metal | Zinc & Lead The Year Till Date Short-term Outlook Strong zinc market with prices surging over 16% over last year Global refined zinc market balance to remain in deficit in CY 2025, especially contributed by significant demand in India offset by 3,050 increased production
Slide 14: Market Update - Precious Metal | Silver
Market Update - Precious Metal | Silver The Year Till Date Short-term Outlook Silver prices ($/toz) Silver Demand Trend (Moz) 31.4 0 29.4 12 3 0 28.8 203 202 220 243 1,052 24.1 23.6 1,009 1,026 1,065 263 22.5 23.2 23.3 270 252 258 26 25 25 27 655 702 726 743 2023 2024 2025 2026 Industrial Photograph
Slide 15: Operational Review - Base Metal | Zinc & Lead
Operational Review - Base Metal | Zinc & Lead Record Mined Metal Record Refined Metal Zinc COP ($/t)* Production (kt) Production (kt) 780 784 760 783 1,142 1,095 1,071 1,073 1,041 271 256 265 259 262 259 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 Q3 FY24 Q2 FY25 Q3 FY25 9M FY24 9M FY25 Q3 FY24 Q2 FY25 Q3 FY
Slide 16: Operational Review - Precious Metal | Silver
Operational Review - Precious Metal | Silver Robust portfolio of Precious metal contributing HZL is India’s only Primary Silver producer significantly to profitability Silver Production (MT) Grew over 20 times in last 2 decades Saleable Silver Production (MT) 746 714 706 679 647 610 558 556 453 425
Slide 17: Strategic Priorities
Strategic Priorities MAXIMISING SHAREHOLDERS VALUE Expansion of Maintaining a Strengthen Cost Expansion of Progressing Capacities Portfolio of Mines Leadership Product Portfolio towards with Long Life through Customer Sustainable Future Centricity Expand mined metal Increased exploration to Drive pr
Slide 18: Financial Review
FINANCIAL REVIEW Mr. Sandeep Modi = CFO ‘i
Slide 19: 3Q FY25 Financial Highlights
3Q FY25 Financial Highlights Revenue EBITDA EBITDA Margin ₹ 8,614 crore ₹ 4,539 crore c.53% Up 18% YoY Up 28% YoY Up c.400 bps YoY Up 4% QoQ Up 9% QoQ Up c.220 bps QoQ Profit after Tax FCF pre capex^ EPS ₹ 2,678 crore ₹ 2,628 crore ₹ 6.34 Up 32% YoY Healthy cash flows Up 32% YoY Up 15% QoQ Up 15% Qo
Slide 20: 9M FY25 Financial Highlights
9M FY25 Financial Highlights Revenue EBITDA EBITDA Margin ₹ 24,996 crore ₹ 12,649 crore c.51% Up 17% YoY Up 26% YoY Up c.360 bps YoY Profit after Tax FCF pre capex^ EPS ₹ 7,350 crore ₹ 9,664 crore ₹ 17.40 / share Up 28% YoY Strong cash flows Up 28% YoY ^ Free cash flow (FCF) pre capex of INR 3,029 C
Slide 21: Shareholder's Value Creation | 9M FY25
Shareholder’s Value Creation | 9M FY25 Hindustan Zinc is among the top Indian Metal companies with superior total shareholder returns ▪ HZL’s market cap surged over 50% by adding ₹64k Cr HZL vs Index Returns ▪ Dividend Payout of ₹12k Cr (1450% of face value) 200% 150% ▪ Total shareholder returns per
Slide 22: Key takeaways from 3Q FY25
Key takeaways from 3Q FY25 ▪ Invested in Metals of Life. Will be in high demand for the energy transition ▪ Irreplaceable assets base with mine life of 25+ years How HZL is ▪ Market leader in India’s primary zinc with more than 75% creating value share for all their ▪ Large scale & low-cost operatio
Slide 23: Appendix
APPENDIX
Slide 24: EBITDA Bridge YoY (Q3 FY25 vs Q3 FY24)
EBITDA Bridge YoY (Q3 FY25 vs Q3 FY24) (All figures in ₹ Cr unless stated otherwise) 1,128 104 4,791 74 4,539 (316) (10) 3,559 Q3 FY24 Prices Fx Adj. EBITDA Volume Cost Marketing & others Q3 FY25 Note: All financials are at consolidated level 23 HINDUSTAN ZINC LIMITED - Q3 FY25 INVESTOR PRESENTATION
Slide 25: EBITDA Bridge QoQ (Q3 FY25 vs Q2 FY25)
EBITDA Bridge QoQ (Q3 FY25 vs Q2 FY25) (All figures in ₹ Cr unless stated otherwise) 462 59 4,685 46 34 4,539 4,164 (226) Q2 FY25 Prices Fx Adj. EBITDA Volume Cost Marketing & others Q3 FY25 Note: All financials are at consolidated level 24 HINDUSTAN ZINC LIMITED - Q3 FY25 INVESTOR PRESENTATION Sens
Slide 26: Commodity, Currency and COP Sensitivities
Commodity, Currency and COP Sensitivities Impact of 10% increase in Commodity Prices on annual EBITDA Commodity 9M FY25 Average Impact on EBITDA (₹ Cr) Zinc ($/MT) 2,887 1,800-2,000 Lead ($/MT) 2,071 325-350 Silver ($/toz) 30 525-550 Impact of ₹1 depreciation on annual EBITDA Currency 9M FY25 Averag
Slide 27: Sustainability Goals 2025
Sustainability Goals 2025 Progress Major Actions Climate GHG intensity (Scope 1 + 2)/MT • 530 MW Renewable Energy: Phase-wise consumption started (223 MU consumed) • 100% RE power consumption at Pantnagar Metal Plant Change 5.44 5.15 4.97 4.66 • Use of biomass in power plant 4.44 4.38 • Energy effic
Slide 28: Sustainability Goals 2025
Sustainability Goals 2025 Progress Major Actions • Critical Risk Management (CRM) implementation for 13 high risks Zero Harm TRIFR • SURAKSHA KAVACH Implementation - Phase 1 Mining & Smelting 2.67 2.57 2.22 1.93 1.84 • Safety Pause - Right to Refuse Unsafe Work 1.24 • Deployment of M/s Chola at CLZS
Slide 29: Awards and Recognition - Q3 FY25
Awards and Recognition - Q3 FY25 ❖ Hindustan Zinc has been ranked 1st in the Metals & Mining sector for the 2nd consecutive year in the S&P Global CSA 2024 ❖ HZL won the Sustainability Excellence Award in Manufacturing sector at the 2nd Annual Sustainability Symposium hosted by Indian Chamber of Com
Slide 30: Thank You
THANKYOU i HINDUSTAN ZINC HINDUSTAN ZINC LIMITED Yashad Bhawan, Udaipur-313 004, Rajasthan T: +91 294 6604000-02 www.hzlindia.com RS vedanta ransformin: g for good Email: hzl.ir@vedanta.co.in