Hindustan Zinc, owned by Vedanta, has paused its demerger plans and is specializing in consolidating operations in India. The corporate is discussing a $1–1.1 billion (₹8,500 crore) phase-I development capex, with Board approval anticipated inside a month.
Mixed with related investments in future, Hindustan Zinc goals to double its production to almost 2 million tonnes (mt) in the approaching years, CEO Arun Misra, informed businessline.
In accordance to Misra, the capex is predicted to be funded “ideally” by way of a mixture of debt and fairness. The corporate generated free money flows to the tune of $1.1 billion for FY25, with present debt price being “lower than 8 per cent”.
For FY25, the corporate had a internet debt place of ₹1,200 crore. Internet debt was introduced down from ₹5,700 crore stage, as on September 30, 2024.
Mined metallic production for FY25 was round 1.1 mt. Revenues stood at ₹34,083 crore, up 18 per cent y-o-y, whereas EBITDA stood at ₹17,465 crore, up 28 per cent y-o-y. EBITDA margin at 51 per cent reported a 400 foundation factors enchancment. Revenue after tax elevated by over 33 per cent, to ₹10,353 crore.
“The expansion capex to double production is underneath dialogue and almost $1 billion funding is into account. There will probably be phase-wise enhance in capacities throughout mines and we’re engaged on it. Within the subsequent one month or so we’ll go for Board approvals,” Misra mentioned.
Capex steerage for FY26 is round $225-255 million (₹2,000 – ₹2,300 crore) – primarily for debottlenecking, gear substitute at mines and so on. Board accepted development capex can be individually thought-about.
Growth plans
The corporate has already charted out output growth plans throughout two of its eight mines – Rampur Agucha and Sindeswar Kurd – whereas work is on throughout 6 extra (Rajpura Dariba, Zawar, Kayad, and others). Consultants or mine growth operators have been appointed for a similar.
“A couple of unfastened ends have to be tied up and after that we go to the Board,” the corporate’s high brass had mentioned throughout an investor name.
Requested about demerger plans, together with acquisition of mines abroad, Misra mentioned, “The plans had been made maintaining in thoughts the scenario then.” Nonetheless, with dad or mum Vedanta wanting to scale up operations on the not too long ago re-instated Zambian copper mines and its personal group demerger plans being put in movement, “Hindustan Zinc opted for a change in technique”.
The corporate would look to consolidate presence in India, at current, together with foraying into critical minerals and ramping up treasured metallic production (silver).
Critical minerals
As a part of this India-centric technique, Hindustan Zinc not too long ago secured leases for a tungsten block (critical mineral) in Andhra Pradesh and a gold mining block in Rajasthan. “It should take two to three years for mining to begin throughout these new blocks. We’re at present finishing the documentation processes, after which exploratory actions will start,” Misra mentioned.
“Over the following few years, we transfer from only a base metallic miner to treasured and different critical mineral production,” Misra added.
Printed on April 25, 2025
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