Metals and Mining stocks results preview for Q3FY12: Emkay

7474 Investors following Bhushan. Share this News with them.

0

Like this story, share it with millions of investors on M3

Metals and Mining stocks results preview for Q3FY12: Emkay

Emkay Global Financial Services has come with its December quarterly earning estimates for Metals and Mining sector. According to the research firm, during Q3FY12, the sector is expected to post a revenue growth of 7% on YoY basis and a decline of 5% on a QoQ basis.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ News and Notices about Bhushan See interviews with Bhushan Management See what other Experts & Brokerages are saying about Bhushan See previous Results of Bhushan

Emkay Global Financial Services has come with its December quarterly earning estimates for Metals and Mining sector. According to the research firm, during Q3FY12, the sector is expected to post a revenue growth of 7% on YoY basis and a decline of 5% on a QoQ basis.

The increase is essentially because of enhanced volumes and slightly better realizations at JSW Steel, Sterlite Industries and Bhushan Steel. The sharp fall in LME (12% to 18%), Silver (18%) and steel (5%) realizations during Q3 was to some extent offset by the depreciating INR (13%) giving 5% QoQ decline. The major contributors of YoY growth are expected to be JSW Steel (30%), Bhushan Steel (15%) and Sterlite (12%) while Sesa Goa is expected to decline by 8% on account continued mining ban in Karnataka. On QoQ basis major declines in revenues are expected at Bhushan (10%), Sterlite (9%) and Tata Steel (8%) while Sesa would show an increase of 162% due to the seasonal impact in second quarter (monsoon).

The EBITDA performance for the universe is expected to take a dip of 11% on a YoY basis and 2% QoQ. The major declines on YoY are expected in Tata Steel (38%) and Sesa Goa (24%) primarily due to pressure on input costs and export duties (for Sesa Goa). Despite the phenomenal growth in Sesa Goa's EBITDA (+3515%), the EBITDA of metals universe is expected to be flat QoQ because of decline in Tata Steel (23%), JSW Steel (21%), Bhushan (10%) and Sterlite (9%) due to domestic input cost pressures.

The PAT is expected to witness a decline of 24% on a YoY basis. However, due to extraordinary increases in PAT at JSW Steel and Sesa Goa, the universe is expected to grow by 30% on a QoQ basis. Sterlite and HZL are the only companies to post a YoY growth, highest decline being at Tata Steel (-68%). On QoQ basis, PAT for Sesa Goa is expected to increase significantly due to the seasonal impact in second quarter, while for JSW Steel is expected to report a positive number after a bad quarter of negative PAT due to losses on account Ispat and INR depreciation.

Developments on the iron ore auction mining ban in Karnataka, Shah Commission study in Goa, low LMEs and continued depreciation of the Indian currency are likely to have significant impact on the Q4 FY12 performance.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.