Hindustan Zinc Ltd Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Amit Dixit - ICICI Securities Limited - Analyst : Congratulations for a good set of numbers this quarter. I have a couple of questions, sir. Is it possible to quantify the hedging gain in this quarter, the residual hedging quantity we have and if there was any fresh exposures taken in this quarter?

Question: Amit Dixit - ICICI Securities Limited - Analyst : Okay. And no fresh exposures were taken in this quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2025 / 12:15PM, HZNC.NS - Q3 2025 Hindustan Zinc Ltd Earnings Call

Question: Amit Dixit - ICICI Securities Limited - Analyst : Okay. The Second question is on -- in the prepared remarks, we mentioned that there was lower production due to maintenance-related shutdown, so is it possible to quantify what kind of -- in quantity terms, what would have been the loss?

Question: Amit Dixit - ICICI Securities Limited - Analyst : Okay. Okay, sir. Great. And given the level of LME prices at the moment, is it fair to assume that we will be running the combo in zinc mode because when prices are -- appear to be quite favorable over lead?

Question: Amit Dixit - ICICI Securities Limited - Analyst : And the geotechnical issues that you alluded to in your prepared remarks are now averted in SK mine.

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Sir, quick three questions. First, you mentioned that you are still maintaining the overall mine metal production guidance as well as refining zinc guidance?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Because now that means the fourth quarter could be 350 around Kt from 265 to 350 Kt, do we think that we will be able to manage that?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Okay. That's great. Second question is in terms of royalty. Is it possible to quantify how much royalty we have paid to our parent in nine months and three months, respectively?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Okay. So we have already paid INR650 crore for entire FY25?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Yes. And sir, lastly, last quarter also we said that we are working on to increase our capacity from 1.2 to something like 2 million tonne and can you give some kind of details. So any progress on that front?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : So sir, is it possible if we can say for suppose next five years' plan, year wise, like we are 1.2 million tonne mined metal right now and refined metal of 1.1, how we are stepping ahead and reached 2 million tonnes maybe five years, seven years, whenever, but year-wise not -- obviously, as you rightly pointed out, it can't be one go. But from 1.2, are we going to 1.35, 1.5? So year-wise, if it's possible to share?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Okay. So one thing is sure that from 1.2, we are going ahead to 1.45 by FY27 or max FY28.

Question: Manav Gogia - YES Securities (India) Limited - Analyst : Sir, one question I wanted to ask was on the Hindustan Zinc plant. Could you quantify the amount of EBITDA that was generated during this quarter?

Question: Manav Gogia - YES Securities (India) Limited - Analyst : Okay. And what would be the annual run rate that we can expect on a full year basis from this --

Question: Manav Gogia - YES Securities (India) Limited - Analyst : Got it. So one more question was, can you give me the blend of renewable energy in the total energy mix that we had? I think last quarter, we were somewhere around 14%, and we guided to be between 25% to 30% during this particular quarter. So just --

Question: Raashi Chopra - Citi - Analyst : Just a couple of questions on the renewable energy, will you still exit the fourth quarter at 25%?

Question: Raashi Chopra - Citi - Analyst : Okay. And the -- I don't know if I missed this on this call, but the cost of production guidance for the full year, are you still maintaining what you had given earlier?

Question: Raashi Chopra - Citi - Analyst : Okay. Just on the restructuring, I mean, there were press articles which were suggesting that you talk to the government, have those concluded or are still ongoing?

Question: Raashi Chopra - Citi - Analyst : All right. And just one last question for me. On the dividend side, I mean, there has been a bit of a slowdown vis-a-vis what Vedanta has been announcing. So is there any sort of change in dividend policy or we can expect it to kind of resume?

Question: Shreyans Daga - Barclays Corporate & Investment Bank - Analyst : Congrats on the good set of numbers. I have one question on the Supreme Court ruling on mining sales last year. So has Hindustan Zinc received any new demands for any kind of sales related to mining? And are you making any provisions for the rest of the year for any such demands?

Question: Shivani Tanna - Dolat Capital - Analyst : Sir, my question was regarding the silver production FY25 guidance was 750 tonnes to 775 tonnes, but 9M volume shows that the guidance might not be achieved. So any impending reason for the same and future prospects regarding the status of additional silver volumes from the

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Sir, I missed that time, what could be the probable CapEx for this expansion, this 250,000 tonnes smelter as well as mine expansion, which we are planning to do?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : But sir, $2 billion to $2.5 billion is for 1.2 million tonnes to 2 million tonnes. So we have visibility only for 1.2 to 1.45 right now, so have we gone ahead with ordering or still it's in stage? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2025 / 12:15PM, HZNC.NS - Q3 2025 Hindustan Zinc Ltd Earnings Call

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : That's very clear. So -- and we are planning to start it from next year maybe.

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Okay. Can you please explain, sir, give some more details on that 10 million tonne exactly?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Sir, is it possible to share how much tailings we have and when we are going to plan or start this recycling plant or when will it start hitting our P&L?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd. - Analyst : Yes. And this will be under Hindustan Zinc only?

Question: Jainam Shah - Indsec Securities & Finance - Analyst : Congratulation on good set of results. My only question is that what is the revenue potential from the DAP plant that is going to be expected to be commissioned in FY26?

Question: Jainam Shah - Indsec Securities & Finance - Analyst : Yes. So you have been mentioning EBITDA across the different calls that has been there, but revenue potential is not shared. So any specific reason for that? Or it's still in the books. So what will be the revenue potential? I just wanted to know that.

Question: Shweta Dikshit - Systematix Shares & Stocks (I) Ltd. - Analyst : A couple of questions from my side. Is there an annual CapEx guidance for the next two years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2025 / 12:15PM, HZNC.NS - Q3 2025 Hindustan Zinc Ltd Earnings Call

Question: Shweta Dikshit - Systematix Shares & Stocks (I) Ltd. - Analyst : So I mean for a model perspective, we can at least for now take this as a steady-state basis for the next two years, that will be the minimum CapEx for the two years?

Question: Shweta Dikshit - Systematix Shares & Stocks (I) Ltd. - Analyst : And another question on the recycling plant, that's a 10 million tonne processing capacity per annum, right, as you mentioned?

Question: Shweta Dikshit - Systematix Shares & Stocks (I) Ltd. - Analyst : And recovery of around 2% to 2.5%?

Question: Shweta Dikshit - Systematix Shares & Stocks (I) Ltd. - Analyst : And this is likely to be only zinc or are you looking at other -- any other metal or minerals here?

Question: Shweta Dikshit - Systematix Shares & Stocks (I) Ltd. - Analyst : Okay. And this -- simply said this is something which does not entail any input costs since that these are basically tailings that you'll be utilizing. So could you give an indication of what -- like what kind of visibility do you have of processing 10 million tonne every year? Like what's your --

Question: Manav Gogia - YES Securities (India) Limited - Analyst : Sir, one question I wanted to ask was basically on the fumer getting ramped up. Last quarter, I believe you had mentioned that there were some design inefficiencies that are taking place. So I just wanted to know how are we placed on the fumer ramping up?

Question: Manav Gogia - YES Securities (India) Limited - Analyst : Okay. And has this produced any of the volumes till now?