ICICI Securities has come out with its first quarter (April-June) earnings estimates for the metal sector. The brokerage house expects Hindustan Zinc to report a degrowth of 46.5 percent quarter-on-quarter (degrowth of 40.2 percent year-on-year) in net profit at Rs 1149.2 crore.
Sales are expected to decrease by 12.7 percent Q-o-Q (down 24.7 percent Y-o-Y) to Rs 2734.3 crore, according to ICICI Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 23.5 percent Q-o-Q (down 39.8 percent Y-o-Y) to Rs 1000 crore.
ICICI Securities report on Hindustan Zinc
Hindustan Zinc is about to report a very weak Q1FY17. This is primarily on account of hardly any production from Rampura Agucha in the current quarter. Hence, both Zinc and lead volumes are expected to drop 20 percent Q-o-Q. This leads to a 24 percent Q-o-Q drop in EBITDA in Hindustan Zinc despite strength in LME.Disclaimer: The views and investment tips expressed by investment experts 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.
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