London-listed Vedanta Resources' subsidiary Hindustan Zinc will announce its third quarter earnings on Friday. According to CNBC-TV18 poll, analysts expect strong results due to firm zinc prices, rupee depreciation, rising premiums and zinc volumes despite weak lead-silver volumes.
Profit after tax may grow 8.5 percent year-on-year to Rs 1,750 crore on net sales of Rs 3,520 crore (12.1 percent growth) in the quarter ended December 2013.
Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to increase 22.9 percent on yearly basis to Rs 1,790 crore and opearting profit margin may expand 450 basis points to 50.9 percent in the quarter gone by.
Production of integrated zinc is expected to be flat while production of lead and silver is expected to drop around 12 percent and 7 percent, respectively.
Realisations may be aided by weak rupee and robust premiums while higher power and fuel costs may put pressure on the margin.
Analysts expect other income to remain lower due to interest rate fluctuations.
Key to watch out for will be progress of underground mining in Rampura Agucha, and developments in SK mine and Kayad mine.
Any communication with respect to government divestment will also closely watch by the street. Analysts feel the progress on acquistion of government's 29.5 percent stake in the company by Sesa Sterlite will drive the stock.
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