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.

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