Any current/future new fundraising through debt or equity?

Currently, Hindustan Zinc expects to generate free cash flow during the year and aims to be net cash on a steady basis. For the 2 million ton expansion project, the company may consider some debt-equity financing depending on the project's Internal Rate of Return (IRR). No immediate concerns or plans for fundraising at this point in the steady phase. The current net debt of approximately INR 6,000 crores is primarily a timing mismatch due to recent dividend payments, with expectations to reduce this to around INR 2,000 crores by year-end. No dividend discussions or notifications have taken pla

Any current/future capex/capital investment/strategic investment?

Ongoing capex includes a new 160,000 tons per annum roaster plant at Debari, targeted for final commissioning by Q4 of FY'25. Hindustan Zinc Fertilizer Private Limited project, a 510,000 tons capacity plant, is on track with commissioning expected by Q2 of FY'26. Future expansion plans aim for 2 million tons production capacity, involving mining contractor appointment and concentrator expansion. Exploration to convert 18+ million tons of metal in ore resources to reserves, targeting mine reserve expansion beyond 20 million tons. No current plans for zinc smelter setup in Gujarat. Capital struc

Future growth expectations in sales/revenue/volumes?

Hindustan Zinc aims to achieve a refined metal production of at least 1.2 million tons in the next financial year, reaching close to rated capacity. The company targets a long-term expansion to a 2 million ton mine run-rate, planned through development of mines including Zawar and RD, with an emphasis on maintaining high ore grades. Year-on-year growth in volume is supported by record second quarter and half-year mined and refined metal production, with a 5% compounded annual growth rate in metals and silver. Domestic zinc demand is growing, positioning India as the third largest zinc co

Future growth expectations in earnings/operating earnings/profits/EPS?

Hindustan Zinc aims to reach a steady-state production capacity of 1.2 million tons next financial year, supporting revenue growth. The company targets a long-term expansion to 2 million tons, contingent on project IRRs and capital allocation strategies. Free cash flow generation is expected to increase, with net debt anticipated to reduce to around INR 2,000 crores by year-end and a steady net cash position thereafter. Fertilizer projects (DAP/NPK) are progressing on schedule, with commissioning targeted by Q2 FY26, expected to add significant EBITDA (~INR450-500 crores at full capacity). Cos

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Hindustan Zinc LtdQ3 FY24Non - Ferrous Metals

Hindustan Zinc Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹518P/E: 19.7Market Cap: ₹2.7L CrSector: Non - Ferrous Metals

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Hindustan Zinc aims to achieve a refined metal production of at least 1.2 million tons in the next financial year, reaching close to rated capacity.
→The company targets a long-term expansion to a 2 million ton mine run-rate, planned through development of mines including Zawar and RD, with an emphasis on maintaining high ore grades.
→Year-on-year growth in volume is supported by record second quarter and half-year mined and refined metal production, with a 5% compounded annual growth rate in metals and silver.
→Domestic zinc demand is growing, positioning India as the third largest zinc consumer by 2026, which supports revenue growth.
→Planned expansions include a 160,000 tpa roaster and a 510,000 tons Hindustan Zinc Fertilizer project, enhancing product mix and revenue streams.
→Market conditions like steady zinc prices (~$3,000/ton), strong dollar, and improving customer demand provide a favorable environment for growth.

Margin guidance

Category 3

→Hindustan Zinc aims to reach a steady-state production capacity of 1.2 million tons next financial year, supporting revenue growth.
→The company targets a long-term expansion to 2 million tons, contingent on project IRRs and capital allocation strategies.
→Free cash flow generation is expected to increase, with net debt anticipated to reduce to around INR 2,000 crores by year-end and a steady net cash position thereafter.
→Fertilizer projects (DAP/NPK) are progressing on schedule, with commissioning targeted by Q2 FY26, expected to add significant EBITDA (~INR450-500 crores at full capacity).
→Cost reduction efforts, including increased renewable energy usage, are expected to keep costs at the lower end of guidance ($1,050-$1,100 per ton).
→EBITDA margins are strong (>50%), supported by favorable metal prices and operational efficiency.
→Production growth, cost control, and strategic expansions underlie optimistic profit and EPS growth prospects.

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Fundraise plans

→Currently, Hindustan Zinc expects to generate free cash flow during the year and aims to be net cash on a steady basis.
→For the 2 million ton expansion project, the company may consider some debt-equity financing depending on the project's Internal Rate of Return (IRR).
→No immediate concerns or plans for fundraising at this point in the steady phase.
→The current net debt of approximately INR 6,000 crores is primarily a timing mismatch due to recent dividend payments, with expectations to reduce this to around INR 2,000 crores by year-end.
→No dividend discussions or notifications have taken place recently.
→No plans for equity fundraising or corporate bifurcation currently; government disinvestment efforts are ongoing in parallel.
→No hedges or fundraising plans for the next fiscal year have been indicated as of now.

Order book

The transcript does not explicitly mention any details regarding current or expected orderbook or pending orders for Hindustan Zinc Limited. The discussion focuses primarily on production volumes, expansion plans, financial performance, cost guidance, capital structure, hedging positions, and project updates such as mine developments and fertilizer plants. No specific information on orderbook or pending orders was provided in the provided pages of the transcript.

Capex plans

Yes

→Ongoing capex includes a new 160,000 tons per annum roaster plant at Debari, targeted for final commissioning by Q4 of FY'25.
→Hindustan Zinc Fertilizer Private Limited project, a 510,000 tons capacity plant, is on track with commissioning expected by Q2 of FY'26.
→Future expansion plans aim for 2 million tons production capacity, involving mining contractor appointment and concentrator expansion.
→Exploration to convert 18+ million tons of metal in ore resources to reserves, targeting mine reserve expansion beyond 20 million tons.
→No current plans for zinc smelter setup in Gujarat.
→Capital structure to remain mostly net cash in steady state; some debt equity may be considered depending on project IRRs during 2 million ton expansion.
→Emphasis on project feasibility, longer-term policy factors beyond 2030 uncertain for mine retention.

How does Hindustan Zinc Ltd rank vs peers in Non - Ferrous Metals?

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