Hindustan Zinc Limited (HZL), a Vedanta group company and the sole integrated producer of zinc-lead and silver in India, maintains an optimistic outlook for the upcoming quarter despite increasing discussions about the potential for major global economies to slip into a recession. CEO Arun Misra expressed this sentiment on Saturday.
Misra conveyed his hopefulness, stating, “I am very optimistic that the US economy will significantly drive demand, even though Europe may experience some sluggishness.” He emphasized that the US government’s substantial investment in infrastructure would serve as a major catalyst for global demand. Additionally, he noted that emerging economies’ continued capital expenditure would contribute to sustained demand.
Regarding performance, Misra stated, “With a consistent run-rate of over one million tonnes for both mined and refined metals in the past 12 months, we are well-prepared to deliver another outstanding performance this year.” He reaffirmed the company’s guidance on volume and capital expenditure for FY23.
The CEO disclosed that the company has devised a capital expenditure plan of Rs 2,500 crore over the next 18 months. He mentioned, “We intend to allocate this amount towards establishing a fertilizer plant and a separate roaster at one of our smelting units.” The fertilizer plant is likely to be situated in Chanderia, Rajasthan.
Expanding on the company’s commitment to achieving net-zero emissions by 2050, Misra revealed that the company has entered into a power delivery agreement to source up to 200 MW of renewable energy, a move expected to prevent 1.2 million metric tons of carbon emissions.
In another initiative aimed at reducing carbon emissions, Misra outlined the company’s plan to replace all 900 diesel-powered vehicles used in its eight mines spread across five districts in Rajasthan with battery-operated vehicles. This endeavor is estimated to cost $1 billion over the next five years, with an initial introduction of four battery vans.
For H1FY23, the company reported a nearly 44% increase in consolidated net profit, reaching Rs 5,722 crore, primarily attributed to higher zinc volumes. In the corresponding period of the previous year, the company had posted a consolidated net profit of Rs 4,000 crore. Furthermore, H1FY23 consolidated revenue from operations rose to Rs 17,723 crore, up from Rs 12,653 crore in the year-ago period.
Overall, the company’s H1FY23 mined metal production increased by 8% year-on-year, driven by improved smelter performance, enhanced mined metal extraction from mines, and better plant availability. These factors partly offset the impact of an acid storage tank breakdown at the Chanderia plant in Q2 FY23.
