Business Overview
HZL’s operations span mining, smelting, and refining, with a product portfolio including:
- Zinc: World’s second-largest integrated producer, with a domestic market share of ~75%.
- Lead: Significant output from integrated facilities.
- Silver: Third-largest producer globally, with an annual capacity of 800 metric tons (MT).
- Others: Sulphuric acid, alloys, and power generation (captive thermal, wind, and solar plants).
The company operates five zinc-lead mines (Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar, Kayad) and multiple smelting and refining facilities in Rajasthan, plus a silver refinery in Uttarakhand. Rampura Agucha is the world’s largest underground zinc mine. HZL’s total reserve and resource base is 456.3 million tonnes, with a mine life exceeding 25 years. It also has wind power plants across Rajasthan, Gujarat, Karnataka, Tamil Nadu, and Maharashtra, and solar plants in Rajasthan, supporting its energy needs and sustainability goals.
Recent Financial Performance (Q3 FY25)
HZL’s Q3 FY25 (October-December 2024) results, announced on January 28, 2025, reflect strong operational performance:
- Revenue: Rs 8,614 crore, up 20% YoY from Rs 7,180 crore in Q3 FY24, beating estimates of Rs 8,390 crore. Growth was driven by higher metal volumes and prices.
- Net Profit: Rs 2,678 crore, up 32% YoY from Rs 2,028 crore, surpassing forecasts of Rs 2,479 crore, fueled by cost reductions and a favorable product mix.
- EBITDA: Rs 4,499 crore, up 25% YoY, with a margin of 52.2%, reflecting operational efficiency despite rising input costs.
- Production: Mined metal output was 263,000 tonnes (up 3% YoY), refined metal hit 271,000 tonnes (up 11%), and saleable silver reached 6.1 million ounces (up 5%).
For FY25’s fourth quarter (January-March 2025), HZL reported mined metal production of 310,000 tonnes (up 4% YoY, 17% QoQ) and refined metal at 270,000 tonnes (down 1% YoY), per an April 2, 2025, update, achieving a record annual refined metal output of 1,052,000 tonnes.
Stock Performance and Market Position
As of April 5, 2025:
- Share Price: Around Rs 450-460, down from a 52-week high of Rs 807.70 (May 2024) but up from a low of Rs 284.60, reflecting volatility tied to commodity prices and U.S. tariff concerns (25% on foreign imports, March 2025). Posts on X noted a 10% circuit hit on April 2 at Rs 4,013, though this seems inconsistent with broader data, possibly a typo or speculative spike.
- Market Cap: Approximately Rs 1,83,000-1,90,000 crore ($22-23 billion USD).
- Returns: Up 36-48% over the past year (per BSE/NSE trends), though down 40% from its May 2024 peak.
Shareholding Pattern (as of December 31, 2024)
- Promoters: 63.42%, held by Vedanta Limited (down from 64.92% in March 2024), with 93.5% pledged.
- Government of India: 27.92%, the largest minority shareholder.
- FIIs: 1.38%, reduced amid global trade shifts.
- DIIs: ~5-6%, with mutual funds at 0.11%.
- Public: ~3-4%.
Strategic Developments
- Demerger Talks: HZL is pursuing a split into two units (zinc/lead and silver/recycling), despite government opposition, to unlock value. Discussions restarted in early 2025 after a March 2024 rejection.
- Expansion: Plans to invest $2 billion to double capacity to 2 million tonnes by FY27-28, targeting 1.2 MT in FY25 and 1.8 MT by FY27.
- Sustainability: Launched EcoZen (low-carbon zinc) in FY25 and aims for renewable energy to power operations within 5-7 years. It recycled 18 billion liters of water in FY24 and ranks as the world’s most sustainable metals and mining company (S&P Global, 2024-25).
- Critical Minerals: Plans to bid for copper, lithium, and gold blocks in India and Southeast Asia.
HZL faces challenges from U.S. tariffs (exports are 25% of turnover), commodity price fluctuations, and a high pledged promoter stake. However, its record production, cost leadership, and sustainability focus bolster its outlook. CEO Arun Misra projects strong Q4 FY25 and FY26 growth, with analysts estimating a share price range of Rs 500-585 by mid-2025, contingent on metal prices and demerger progress. Posts on X reflect positive sentiment around its operational highs, tempered by tariff-related caution.
Disclaimer: This article reflects data available as of April 6, 2025, updated through March 31, 2025, from stock exchange filings, company announcements, and verified sources. Financials and shareholding details may shift with new disclosures. This content is for informational purposes only and not investment advice; readers should consult official sources for decision-making.
