Hindustan Zinc Limited — Investor Meet, 28-04-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance**: Hindustan Zinc Limited reported a record-breaking performance for FY '25, achieving the highest-ever production of mined and refined metal. The company posted a profit after tax of INR 10,353 crores, a 33% increase year-over-year, with an EBITDA of INR 17,465 crores (up 28%). Revenue from operations rose 18% to INR 34,083 crores, driven by higher lead volume and increased zinc and silver prices. The EBITDA margin improved significantly, reaching 51%, a gain of 400 bps YoY. The cost of production was reported at $1,052 per ton for the year.

2. **Future Outlook and Growth Drivers**: Management highlighted continued demand dynamics in the zinc and silver markets, fueled by India’s significant infrastructure projects and anticipated GDP growth of 6.5%. The company's ambitious targets for sustainability and continued innovation, like launching low-carbon EcoZen zinc, signal strong future growth potential.

3. **Order Book and Operational Updates**: The company increased domestic zinc sales, capturing 77% of the market. They also noted ongoing operational improvements, including a $994 per ton production cost, supported by efficiency measures and increased renewable energy usage.

4. **Analyst Q&A Insights (Detailed)**:

- **Revenue and Profitability**: Analysts queried the guidance on production costs and silver output. Management explained that cost predictions take into account future renewable energy usage, while silver production is expected to focus more on zinc.

- **Market Position and Competitive Landscape**: Questions focused on the global commodity landscape. Management remained optimistic about India's strong demand for zinc driven by infrastructure growth.

- **Operational Challenges or Risks**: Supply chain and cost pressures were discussed, with confidence in managing these risks through strategic planning.

- **Capex and Capital Allocation**: Concerns over capital allocation strategies were addressed, emphasizing continued shareholder value alongside sustainable growth.

- **Strategic Priorities and Long-Term Vision**: Ongoing efforts to enhance operational capacity were underscored, with anticipated expansions being rolled out in phases.

5. **Market or Regulatory Updates**: Management indicated continued strong pricing in zinc and silver markets, amid geopolitical shifts influencing supply chains and trade dynamics.

6. **Strategic Focus Areas**: Key themes included innovation in production, sustainability initiatives, and agility in capital allocation to maintain industry leadership while navigating macroeconomic uncertainties.

7. **Investor Insight**: The company's robust financial performance, coupled with strong growth strategies in a favorable market, supports a positive outlook for investors, indicating a favorable position for potential capital appreciation.