Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Q4 FY2025 Earnings Presentation
41 slides from Hindustan Zinc's earnings presentation, Apr 25, 2025
Slide 1: Stock exchange cover letter for investor presentation
HZL/2025-26/SECY/11 April 25, 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 At
Slide 2: Hindustan Zinc Limited Earnings Presentation 4Q FY25
Hindustan Zinc Limited The World’s Largest Integrated Zinc Producer EARNINGS PRESENTATION 4Q 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 Unique positioning in Metals & Mining and Energy Transition Space 04 Sustainability Update 08 Market Update and Operational Review 18 Financial Review 26 Appendix 33 3 HINDUSTAN ZINC LIMITED – 4Q FY25 INVESTOR PRESENTATION Sensitivity: Internal (C3)
Slide 5: Unique Positioning in Metals & Mining and Energy Transition Space Globally
Unique Positioning in Metals & Mining and Energy Transition Space Globally World’s largest Integrated Zinc producer Ranked 1st Hindustan Zinc in Metals & Mining sector in S&P Global Peer 2 CSA 2024 for the 2nd consecutive year Peer 3 Peer 4 Asia’s first low carbon ‘green’ Peer 5 zinc producer World’
Slide 6: 2nd Highest Zinc R&R Globally with 25+ Years of Mine Life
2nd Highest Zinc R&R Globally with 25+ Years of Mine Life Focused exploration to expand our reserves and resources base to support our future growth Continued efforts on addition of Targeted and disciplined Achieved more than 13 Mt of more R&R than depletion and exploration to maintain the mine meta
Slide 7: Our Unique Leadership Positioning In India
Our Unique Leadership Positioning In India Well Positioned to Capitalize on the Country’s Strong Growth Trajectory India’s only 77% domestic Consistently India’s only India’s only integrated primary zinc integrated primary Zinc rated AAA by market share with producer of Zinc Alloy and listed Silver
Slide 8: Our Notable Achievements
Our Notable Achievements FY2025 4Q FY2025 Record Production Strong Production Growth QoQ 01 MIC at 1,095 kt, up 1% 01 Record MIC up 17%, Refined metal up 4% and Refined Metal at 1,052 kt, up 2% Silver up 10% 2nd Best Financial Performance Solid Financial 4Q Performance* 02 Revenue up 18%, EBITDA up
Slide 9: Sustainability Update
- SUSTAINABILITY UPDATE
Slide 10: World Leader in Sustainability in Metals & Mining sector
World Leader in Sustainability in Metals & Mining sector Ranked 1st 4.4 30.7 A- S&P CSA 2024 FTSE4Good Sustainalytics CDP 2nd consecutive year Overall score up Score improved to 30.7 Recognized with from 4.0 in 2021 in 2024 vs 47.0 in 2021 Leadership Band Featured in Top 1% in S&P Scores of A- in Cl
Slide 11: Zero Harm: Safety Is Our Priority
Zero Harm: Safety Is Our Priority Target 2025 : Zero work-related fatalities and 50% reduction in TRIFR from the base year of 2020 01 Inframatrix TRIFR (Achieved 55% reduction vs target) Ensuring robust control over critical risk to prevent fatal incidents (TRI per million hours worked) 2.67 2.57 2.
Slide 12: On Path Of Decarbonization By 2050
On Path Of Decarbonization By 2050 Target 2025 : 0.5 mn tCO2e GHG emission savings from base year 2017 530 MW RE RTC PDA signed 1 EcoZen 168 MW solar power commissioned RE power usage increased to c.13% as of Mar’25 2 Asia’s First Low-Carbon ‘Green” Zinc 75% lower carbon footprint vs industry averag
Slide 13: Water Stewardship: Conserving Precious Water Resources
Water Stewardship: Conserving Precious Water Resources Target 2025 : 5x water positive company & achieve 25% reduction in freshwater from the base year of 2020 100% Zero Liquid Discharge facilities ▪ Certified water positive Water Withdrawal (Mn m3) 2.41 ▪ Rajpura Dariba received the Scope-1 7% redu
Slide 14: Circular Economy: Responsible business
Circular Economy: Responsible business Target 2025 : 3x increase in gainful utilization of smelting process waste from the base year of 2020 Waste to 01 02 03 04 Wealth India’s first Fumer Hot Acid Leaching Jarofix Yard Restoration MoU with VEXL Environ facility Technology Restored area of 6.25 Hect
Slide 15: Biodiversity Conservation: Sustainable Future
Biodiversity Conservation: Sustainable Future Target 2025 : Protect and enhance Biodiversity throughout the life cycle Biodiversity Management Plan to achieve India’s 1st TNFD Report 01 No Net loss across sites prepared Identifying risks and opportunities pertaining to Biodiversity Plantation of 0.7
Slide 16: Empowering Communities, Changing Lives
Empowering Communities, Changing Lives Benefitting c.2.3 million lives across 2,362 villages through c.50 initiatives across 7 verticals in FY25 Education Health, Water Sustainable Sports & & Sanitation Livelihood Culture 7 Initiatives 14 Initiatives 3 Initiatives 11 Initiatives 3,80,000+ 4,60,000+
Slide 17: Metals of Future | Zinc Building a Greener Future
Metals of Future | Zinc Building a Greener Future Rising deployment of clean energy technologies is set to supercharge demand for critical minerals 1 2 Critical in enabling Green Creating value across sectors Technologies Zinc plays a critical role in solar and wind 3 Zinc’s inherent sustainability
Slide 18: Metals of Future | Silver the Green Metal
Metals of Future | Silver the Green Metal Silver enabling the Energy Transition Needs Silver plays a dual Silver’s unmatched Silver’s high It is used nearly in role as an industrial conductive and conductivity makes it every electronic metal and a financial reflective properties highly effective for
Slide 19: Market Update and Operational Review
MARKET UPDATE AND OPERATIONAL REVIEW Mr. Arun Misra CEO
Slide 20: Well-placed To Harness India's Growth Momentum
Well-placed To Harness India’s Growth Momentum Growing with the Steel Industry Expanding Indian Economy Strengthening domestic zinc demand on back of India’s economic outlook remains strong, with the consistently growing domestic steel production, which will manufacturing PMI consistently reflecting
Slide 21: Global Market Update - Base Metal | Zinc & Lead
Global Market Update - Base Metal | Zinc & Lead Strong Zinc market with prices surging over 16% over Zinc & Lead prices are forecasted to stay resilient last year despite some expected surplus Zinc and Lead Prices Zinc Price Outlook FY24 avg price Zinc $ 2,475/t FY25 avg price Zinc $ 2,875/t 3,484 2
Slide 22: Global Market Update - Precious Metal | Silver
Global Market Update - Precious Metal | Silver Sustained deficit in near future from growing industrial Increased industrial demand and deficit in the market use, supported by renewable energy & other emerging uses supported the silver price movement, up by 29% YoY in automotive, electronics & 5G ap
Slide 23: Record Annual Production | Continues to be the Lowest Cost Producer Globally
Record Annual Production | Continues to be the Lowest Cost Producer Globally Record Mined Metal Record Refined Metal Zinc COP ($/t)* Production (kt) Production (kt) Lowest in last 4 years 1,079 1,095 1,033 1,052 Up 17% 1,117 Up 4% 1,051 1,041 1,052 299 265 310 994 273 259 270 Q4FY24 Q3FY25 Q4FY25 FY
Slide 24: India's Only Primary Silver Producer Contributing Significantly to Profitability
India’s Only Primary Silver Producer Contributing Significantly to Profitability Robust portfolio of Precious metal HZL is India’s only Primary Silver producer Precious metal contribution in EBIT Silver Production (MT) Grew over 20 times in last 2 decades 687 Precious Metal 38% Base Metal 207 62% 35
Slide 25: Progress We Made in Growth Projects
Progress We Made in Growth Projects 510 Ktpa Fertilizer Plant 1 160 Ktpa Roaster at Debari 2 under HZFPL ▪ Essential part of the process of producing ▪ Fertilizer Plant at Chanderiya aims to support saleable zinc in hydrometallurgical smelters farmers’ needs through production and sale of DAP fertil
Slide 26: Investing in Strategic Priorities for maximizing value creation
Investing in Strategic Priorities for maximizing value creation Expansion of Maintaining a Strengthen Cost Building Progressing Capacities Portfolio of Mines Leadership Diversified towards with Long Life Product Portfolio Sustainable Future India’s steel production Increased exploration to Drive pro
Slide 27: Financial Review
FINANCIAL REVIEW Mr. Sandeep Modi = CFO ‘i
Slide 28: 4QFY25 Financial Highlights
4QFY25 Financial Highlights Revenue EBITDA EBITDA Margin ₹ 9,087 crore ₹ 4,816 crore c.53% Up 20% YoY Up 32% YoY Up c.500 bps YoY Up 5% QoQ Up 6% QoQ Profit after Tax FCF pre capex^ Earning per share ₹ 3,003 crore ₹ 4,123 crore ₹ 7.1 Up 47% YoY Healthy cash flows Up 47% YoY Up 12% QoQ Up 12% QoQ ^ F
Slide 29: 2nd Highest Full Year Financial Performance
2nd Highest Full Year Financial Performance Revenue EBITDA EBITDA Margin Profit after Tax ₹ 34,083 crore ₹ 17,465 crore c.51% ₹ 10,353 crore Up 18% YoY Up 28% YoY Up c.400 bps YoY Up 33% YoY FCF pre capex^ Return on Capital Return on Equity Earning per share Employed ₹ 13,784 crore c. 58% c. 73% ₹ 2
Slide 30: Focused Approach To Capital Allocation
Focused Approach To Capital Allocation, Driving Disciplined Growth And High Returns Through The Cycle Clear Dividend Policy Maintaining Industry Investment in Growth Leading Balance sheet Projects with >18% IRR ▪ Minimum 30% of the profit after ▪ Capital expenditure to sustain ▪ Investing in capacit
Slide 31: Superior Return to Shareholders in FY25
World’s Largest Integrated Zinc Producer and Market Cap Company Delivered Superior Return to Shareholders in FY25 Ranked 3rd c.68% under Nifty Metal Index based on Delivered Total Shareholder Market Cap of ₹ 195k crores Returns* of ₹198.60 per share c.5.6% Included in F&O Among highest dividend yiel
Slide 32: Creating Value For All Their Stakeholders
Creating Value For All Their Stakeholders Invested in High quality & World’s largest Metals of Life. low-cost asset integrated Zinc Will be in high base with strong producer demand for the Irreplaceable margins, energy transition delivering robust Precious metal is Around 77% of Robust balance asset
Slide 33: Driving Sustainable Growth For The Future: FY26 Guidance
Driving Sustainable Growth For The Future Production Mined metal: 1,125 (±10) Ktpa Refined metal: 1,100 (±10) Ktpa Silver: 700 - 710 metric tonnes FY26 Zinc Cost of Production* Guidance $ 1,025 - $ 1,050 per tonnes Growth capex $ 225 - 250 million 32 HINDUSTAN ZINC LIMITED – 4Q FY25 INVESTOR PRESENT
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Slide 35: EBITDA Bridge QoQ (4Q FY25 vs 3Q FY25)
EBITDA Bridge QoQ (4Q FY25 vs 3Q FY25) (All figures in ₹ Cr unless stated otherwise) 143 86 275 4,816 4,539 180 4,463 (151) (256) Market & regulatory 3Q FY25 Prices Fx Adj. EBITDA Volume Volume Cost Marketing 4Q FY25 (Metal) (Silver) & others Note: All figures are at consolidated level 34 HINDUSTAN
Slide 36: Commodity, Currency and COP Sensitivities
Commodity, Currency and COP Sensitivities Impact of 10% increase in Commodity Prices on annual EBITDA Commodity FY25 Average Impact on EBITDA (₹ Cr) Zinc ($/MT) 2,875 1,900-2,000 Lead ($/MT) 2,046 275-300 Silver ($/toz) 30 550-575 Impact of ₹1 depreciation on annual EBITDA Currency FY25 Average Impa
Slide 37: Sustainability Goals 2025 and actual achievements
Sustainability Goals 2025 and actual achievements Progress Major Actions Climate GHG intensity (Scope 1 + 2)/MT • 530 MW Renewable Energy: Phase-wise consumption started (307 MU consumed) • 100% RE power consumption at Pantnagar Metal Plant Change 5.44 5.15 4.97 4.66 4.63 • Use of biomass in power p
Slide 38: Sustainability Goals 2025 and actual achievements
Sustainability Goals 2025 and actual achievements Progress Major Actions TRIFR Zero Harm • Critical Risk Management (CRM) implementation for 14 high risks 2.67 2.57 • SURAKSHA KAVACH Implementation - Phase 1 Mining & Smelting 2.22 1.93 1.84 • Business Partner centric HZL Safety Review and CSC Meet 1
Slide 39: Awards and Recognition - 4Q FY25
Awards and Recognition - 4Q FY25 Won 2nd position in water stewardship and Won Platinum in LACP Vision awards for sustainable performance at 15th CG&S Vision Integrated Annual Report 2023-24, which is Summit hosted by Indian Chamber of Commerce also recognized as the Most Creative Report (ICC) World
Slide 40: Group Structure of Hindustan Zinc Limited
Group Structure of Hindustan Zinc Limited Vedanta Limited Government of India Public 63.42% 27.92% 8.66% Hindustan Zinc Limited Wholly owned Subsidiaries Vedanta Zinc Hindmetal Hindustan Zinc Hindustan Zinc Football and Zinc India Exploration Alloys Private Fertilizers Sports Foundation Services Lim
Slide 41: 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