Hindustan Zinc on Path to Debt-Free Future Amid Expansive Growth Plans

Vedanta group firm Hindustan Zinc Ltd (HZL) is set to become net debt-free by the next financial year. The company is enhancing its capacity with a substantial investment of Rs 16,000 crore. HZL aims to increase its mined production to 1.2 million tonnes, benefiting from rising silver demand and reduced power costs.

Hindustan Zinc Ltd (HZL), a Vedanta Group company, is reportedly on track to clear its net debt by the next financial year, thanks to major capacity expansion investments. A recent report suggests that HZL, India's largest zinc, lead, and silver producer, is set to benefit from favorable domestic and global market conditions.

Brokerage firm Ventura Securities noted the global demand for zinc and lead continues to rise, projecting a compound annual growth rate of 6-7%. This presents an advantageous scenario for HZL, which already stands as a net exporter of zinc amidst India's lead supply deficit. The company's ambitious expansion plans include an investment of Rs 16,000 crore from FY24 to FY27, covering various projects in Rajasthan.

HZL's strategic initiatives are expected to ramp up its mined production to 1.2 million tonnes by FY27. The increase in silver production, as a byproduct of lead concentrate, aligns with booming demand in industrial applications. Combined with power cost savings and operating leverage, these efforts are poised to elevate HZL's revenue and profits significantly in the coming years.

(With inputs from agencies.)