Hindustan Copper Q4: CMD Explains 54% EBITDA Margin, Copper Rally & Expansion Plans | Business News

追加: 2026-05-22

[00:00:00]The morning set to address Hindustan Copper and we've got the CMD Sanjeev Kumar Singh joining in on the show right now. Mr. Singh, great to have you on ET Now. Just looking at your performance and your EBITDA margin crossed 54%, the highest in recent years. Is this a near peak margin number or can margin sustain above 50% for FY27?

[00:00:22]As far as the you say about this the sustainability part, I think we we are in the same momentum and we wish that this momentum continues. In fact, the same team will continue the momentum which we have shown in 25 26.

[00:00:40]Mhm. Uh how do you how should we think about the FY28 margins given that likely wage revision impact may happen and start flowing in from FY27?

[00:00:53]Definitely, but those wage negotiations and other things, they will start a year before. So, the things will happen in the phased manner. It's not that if the wage negotiation wage portion is done, it will impact the profitability to that extent. Uh we will optimize our manpower, our resources in such a way that we are ready to take that particular impact. Impact will definitely be there. There's no doubt about it.

[00:01:18]Right. And how much will the wage revision be if you can just quantify that?

[00:01:26]As of now, we have not thought about it nor any negotiations with the unions have started.

[00:01:33]Mr. Singh, but with copper prices sustaining above $13,500 per ton, how much of the benefit flows directly to Hindustan Copper's EBITDA and of course, you know, the PAT impact as well?

[00:01:47]One thing I can tell you for $100 fluctuation in LME price, we roughly have a advantage of 15 to 20 crores.

[00:01:58]Mr. Singh, where do you see copper prices headed? Will they sustain above 13,500 per ton?

[00:02:05]That is very difficult to say because how long these prices will stay. Because you see there is a mismatch between the supply and demand, isn't it? Supply side the mine the largest one of the largest mine in Indonesia that Grasberg is getting delayed or it's after that accident. Secondly, the expansion plans of the mines in Codelco in Chile, they are also not up to the timelines which were decided. Then secondly, this West Asia war has added another problem because of this the sulfuric acid is which was used which used to go to Africa and other countries for leaching process is not going. So, the quantum of copper is not being able to produce to that extent. So, these two three things which I mentioned has kept a pressure on the supply side and demand is growing as it is.

[00:02:55]Right. And do you believe the current copper cycle is structurally different because of EVs, grids, renewable energy, and AI-driven power demand?

[00:03:05]AI, you have already answered that AI, electric vehicles, renewables, renewables are coming in a large scale and AI as you know the data centers and all that. So, the the data centers are the largest user of copper I should say.

[00:03:21]They're the copper houses.

[00:03:24]Mr. Singh, analysts are skeptical on the timeline of some of your mines. In fact, an analyst says some Jharkhand and Rajasthan mines including Rakha may face delays. Would you like to allay some of those concerns that the that the street has?

[00:03:41]There is no delay.

[00:03:42]And I'm happy to say that Rakha the pre-mining activities are in very advanced stages. The field cutting is in full swing and maybe Rakha may add to this year 2620. In fact, I will tell you 2526 there was a partial addition of production from these Garshila mines. 2627 will see their full strength and 2627 will be the one of the best from the Garshila mines.

[00:04:11]All clearances are in place but no clearance, no statutory clearance is pending from Jharkhand mines.

[00:04:18]The state government is very supportive.

[00:04:20]Central government is also equally supportive to all of us.

[00:04:24]Right. And Hindustan Copper is almost a net debt free, you know, currently, but what is the expected debt profile say over the next three to four years as your capex is going to accelerate?

[00:04:39]As far as this year is concerned, we are nearly a debt free company. We don't have any debts on our accounts.

[00:04:45]2627 the funding of the capex will be from internal accruals.

[00:04:49]2728 also, the majority of the funding rather will be from internal accruals.

[00:04:55]After that, we have already made provisions of bonds, we have made provisions of QIP.

[00:05:01]So, after two years a decision will be taken for debt. As of now, we are nearly debt free company.

[00:05:07]Mhm.

[00:05:08]Uh Mr. Singh, is Hindustan Copper evaluating acquiring overseas assets or strategic partnerships uh to secure copper resources globally?

[00:05:18]We have already joined hands with the world's largest copper company, the Codelco of Chile, and uh we have got an MOU with them and uh but since there is a non NDA, we have signed a NDA with them, so it will not be appropriate to answer many of your questions as of now, but my team has been in Chile for 10-12 days. They they just come back recently only uh last week Monday. So, they are analyzing things and new middle uh as far as they are concerned, the blocks which they have visited, and they have got positive views.

[00:05:50]All right, Mr. Singh. Thank you so much for speaking with us today, and you know, helping us understand how your corp, you know, quarter has been, and what's of course the visibility going forward as well. That's