Shares of Hindustan Zinc Ltd climbed 2.52% to ₹539.90 on the NSE in early trading today after the company outlined plans to reduce its debt by a third by the end of this financial year. Bolstered by strong cash flows and expected solid performance in the October-March period, the company aims to lower its debt to approximately ₹2,000 crore from ₹6,000 crore at the close of Q2 FY25.
Key Financial Highlights:
- Debt Reduction Target: Expected to reduce debt to ₹2,000 crore by March 2025.
- H1 Cash Flow: Generated free cash flow of ₹7,000 crore in the first half of FY25.
- Dividend: Paid ₹10 per share in May and ₹19 per share in August, totaling ₹35 per share this fiscal year.
- Capital Expenditure: Maintained guidance for $270-$325 million in capex for capacity expansion in FY25.
Hindustan Zinc, a subsidiary of Vedanta, is a key cash generator for its parent company, with Vedanta Resources using dividend payouts to help manage its debt obligations. Despite high dividend payouts, Hindustan Zinc remains financially stable, aiming to sustain net cash status.
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Hindustan Zinc