Hindustan Copper Q3 Results: Net Profit Drops to ₹62.9 Crore, Revenue Declines 16% YoY
Business and Industry Overview:
Hindustan Copper Ltd. is a central public sector undertaking under the ownership of the Ministry of Mines, Government of India. It was incorporated on 9th November 1967 under the Companies Act., 1956. It was established as a Govt. of India Enterprise to take over all plants, projects, schemes, and studies about the exploration and exploitation of copper deposits from National Mineral Development Corporation Ltd. It is the only company in India engaged in the mining of copper ore and owns all the operating mining leases of copper ore. It is also the only integrated producer of refined copper (vertically integrated company).
The Company has the facility for the production & marketing of copper concentrate, copper cathodes, continuous cast copper rods, and by-products, such as anode slime (containing gold, silver, etc.), copper sulphate, and sulphuric acid. Presently, the company is focusing on mining & beneficiation operations and is primarily selling copper concentrate as the main product. HCL’s mines and plants are spread across five operating Units, in Rajasthan, Madhya Pradesh, Jharkhand, Maharashtra, and ujarat These are : Malanjkhandd Copper Project (MCP) at Malanjkhand, Madhya Pradesh, Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan, Indian Copper Complex (ICC) at Ghatsila, Jharkhand, Taloja Copper Project (TCP) at Taloja, Maharashtra & Gujarat Copper Project (GCP) at Jhagadia, Gujarat.
Hindustan Copper Limited (HCL) was the sole producer of refined copper till 1995 and the focus was on vertical integration so that the entire quantity of ore produced in its mines was converted into copper cathode and ultimately, wire rod. After the economy’s liberalization, the industry’s copper segment has transformed significantly. Currently, three major players dominate the Indian copper industry. Hindustan Copper Limited (HCL) in the Public Sector, Hindalco Industries Ltd, and Vedanta in the private sector.
HCL is the only producer of copper ore in the country. Copper ore production of HCL during the last few years is in the range of 4.0 million tonnes per annum (Mtpa) which is equivalent to 4.5% of the country’s requirement in terms of copper metal. HCL owns all the operating mining leases in the country, mine expansion is underway, and significant mining capacity expansion is to be achieved from 4.0 Mtpa to 12.2 Mtpa in Phase I by FY 2028-29 and thereafter from 12.2
Latest Stock News:
As per the Q3 results. Net profit of the company falls marginally to ₹62.9 crore, and revenue is down 16% YoY. Total income fell nearly 16% to ₹343.57 crore compared to ₹409.24 crore in the previous year. Meanwhile, the PSU’s EBITDA margin improved by 612 bps in the latest quarter. The revenue for the quarter under review stood at Rs 328 crore, against Rs 399 crore in Q3FY24. EBITDA for the quarter stood at Rs 108 crore, up 0.9% against Rs 107 crore achieved in the quarter a year ago. Along with the quarterly results, the Hindustan Copper Board appointed Mritunjay Kumar Dev, Senior Manager as the Company Secretary and Compliance Officer after the expiry of the tenure C S Singhi from April 3, 2025, onwards.
Segmental information
Digging and Sorting: HCL has several big copper mines across India. They dig up the rock that contains copper (called ore) and then process it to get a more concentrated form of copper. Think of it like separating the good stuff from the dirt.
Melting and Cleaning: They then melt this concentrated copper and clean it up to make pure copper. This pure copper is often in the form of “copper cathodes,” which are like building blocks for other copper products.
Making Copper Stuff: HCL uses this pure copper to make various things like:
- Copper cathodes (the pure copper blocks)
- Copper rods (used in electrical wiring)
- Copper wires
- Copper sulphate (used in agriculture and other industries)
- Other By Products
Getting Other Valuable Things: When they’re digging up the copper, they also find other valuable materials like gold, silver, and other metals. They extract these too, which adds to their income.
Subsidiary Information
- Khetri Copper Complex (KCC) in Rajasthan: It is a underground mine where they dig up copper ore, turn it into concentrated copper, and then melt and purify it into copper cathodes.
- Malanjkhand Copper Project (MCP) in Madhya Pradesh: This is the biggest open-pit copper mine in India. They dig up a lot of copper concentrate here, which they then send to other HCL locations to be refined. They’re also planning to start more underground mining here.
- Indian Copper Complex (ICC) in Jharkhand: It is a mining site where it melts and purifies copper. They make copper cathodes, rods (for wiring), and other things like sulfuric acid as byproducts.
- Taloja Copper Project (TCP) in Maharashtra: This place focuses on making copper wire rods, which are used in electrical and industrial stuff.
Q3 Highlights
- Net profit of ₹62.9 crore for the December quarter, a slight decline of 0.15% from ₹63 crore last year.
- Total income fell nearly 16% to ₹343.57 crore compared to ₹409.24 crore in the previous year.
- Earnings per share (EPS) for Hindustan Copper stood at ₹0.65 for Q3.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 399.00 | 328.00 | 1,677 | 1,717 |
| Expenses | 293 | 220 | 1,185 | 1,170 |
| EBITDA | 107 | 108 | 588.00 | 603.00 |
| OPM | 27% | 33% | 29% | 32% |
| Other Income | 10 | 16 | 96 | 55 |
| Net Profit | 63.00 | 63.00 | 295 | 295 |
| NPM | 15.79 | 19.21 | 17.59 | 17.18 |
| EPS | 0.65 | 0.65 | 3.06 | 3.05 |