Hindustan Zinc Q1 net seen down 32%, low volume may hit EBITDA

Vedanta Resources subsidiary Hindustan Zinc's first quarter (April-June) profit is likely to decline 32 percent year-on-year to Rs 1,125 crore and revenue may fall 30 percent to Rs 2,540 crore, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit (EBITDA) is expected to slip 35 percent to Rs 1,076 crore due to lower volume on ongoing mine development. Margin may contract by 330 basis points at 42.4 percent on annual basis.

LME zinc price rose 14 percent on sequential basis and 13 percent on yearly basis due to closure of some large mines in Q4FY16 and demand growth from China.

Hindustan Zinc may report muted performance for Q1FY17 on account of subdued zinc volumes.