Hindustan Zinc plans $300 mn capex for FY25

Hindustan Zinc has already signed power delivery agreements for 450 MW of renewable energy

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26 Aug, 2025 12:21

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Hindustan Zinc has earmarked $300 million for capital expenditure in FY25 to build a new roaster in Rajasthan, Chief Financial Officer Sandeep Modi said in an interview. Modi added that the company’s strong cash flow would cover the project’s cost and wouldn’t require additional borrowing.

The new roaster, a type of furnace used in the metallurgical process to treat zinc ores, in Debari, Rajasthan, comes amid the company’s bullish outlook on zinc prices this year.

“We have enough cash flow..we have Rs 10,000 crore plus amount of liquidity available. We don’t intend to do any borrowing only for the purpose of the capex,” Modi said, adding that the capex allocation would also be utilized for the renewable energy plans.

Hindustan Zinc has already signed power delivery agreements for 450 MW of renewable energy. Additionally, it has signed agreements to buy 180 LNG vehicles and 10 EV trucks for goods movement, the company said in a presentation on April 19.

The miner reported a 21 percent drop in fourth-quarter net profit to Rs 2,038 crore from a year earlier on April 19, as zinc prices remained depressed amid supply outpacing demand growth.

HZL’s revenue from operations in the quarter fell 12 percent to Rs 7,285 crore from Rs 8,281 crore a year ago. It, however, rose three percent from the preceding three months.

Debt reduction plans

HZL’s total outstanding borrowing as of March 31 stood at Rs 8,455 crore.

The company reported a net debt in FY23 for the first time in over two decades from being debt-free. However, the management is confident it can reduce the company’s debt.

“You have to look at Rs 4,500-crore debt repayment, so automatically debt levels will be reduced,” Modi said.

“HZL will continue to benefit from its favourable capital structure and healthy liquidity, driven by dominant position in the domestic market, high cash flow from the core business, and efficient and integrated operations,” rating agency Crisil said in its report last year.