Hind Zinc Q1 PAT seen down 7% at Rs 1385cr

Its EBITDA is seen down 6% at Rs.1476.4 crore versus Rs 1566.6 crore, YoY.   

Its EBITDA margins is seen down at 52.2% versus 55.5%, YoY.

The company's PAT is seen down 7% at Rs 1385 crore versus Rs 1494.9 crore, YoY.
 
Quarter-on-Quarter

Its net sales are seen down 9% Rs 2830 crore versus Rs 3093.5 crore.

Its EBITDA is seen down 9% at Rs 1476.4 crore versus Rs 1619.6 crore.       

Its EBITDA margins is seen at 52.2% versus 52.3%.

The company's PAT is seen down 2% at Rs 1385 crore versus Rs 1412.8 crore.

Net sales to decrease QoQ due to lower volumes and lower realizations:

Volumes:

Refined zinc and lead sales volumes are likely to decline 7% QoQ to 210k tonnes

Though Silver volumes are likely to grow 9% QoQ to 81tonnes

Realizations: Lower Realizations but will be partially offset by INR depreciation:

Zinc prices have declined 5% q-o-q and 14% y-o-y to USD1,929/tonne

Lead prices have declined 6% q-o-q and 22% y-o-y to USD1,976/tonne

Silver too declined during the quarter (-10%) to US$29.5/ oz 

Lower volume will impact the EBITDA margins:

Subdued performance for Q1FY13 primarily due to mine development work which was taken up during the quarter adversely affecting production

On QoQ basis, production of lead metal and silver was subdued due to lower production at RA mine

Expect refined zinc and lead volumes to decline due to deterioration of ore grade at Rampura Gucha mine

Drop in zinc metal production for the quarter due to grade deterioration at Rampura Agucha (RA) mine, Rajasthan and suspension of its Vizag smelter, AP

But on a YoY increase in lead metal and refined silver production, on the back of commissioning of a new lead smelter and ramp-up at Sindesar Khurd (SK) mine, Rajasthan

PAT:

PAT will be aided by higher interest income and lower tax rate

PAT drop is seen much smaller than EBITDA fall due to lower tax rate  from 24% in 4QFY12 to roughly 16% in 1QFY13