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Hindustan Zinc Q2 PAT seen up 9% at Rs 1,675 cr: Poll

According to a CNBC-TV18 poll, profit after tax is likely to increase 8.8 percent year-on-year to Rs 1,675 crore and net sales may jump 20.6 percent to Rs 3,405 crore in the quarter gone by.

October 23, 2013 / 12:09 PM IST
 
 
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Hindustan Zinc, the subsidiary of London-listed Vedanta Resources, will announce its second quarter (July-September) results today. Analysts expect good numbers from the company on account of higher volumes and realisation during the quarter.


Metal prices have been moving higher while rupee depreciation aided realisation, which will be beneficial for the company. However, other income is expected to be lower during September quarter as there will be mark-to-market hit due to rise in interest rates.


According to a CNBC-TV18 poll, profit after tax is likely to increase 8.8 percent year-on-year to Rs 1,675 crore and net sales may jump 20.6 percent to Rs 3,405 crore in the quarter gone by.


Earnings before interest, tax, depreciation and amortisation (EBITDA) is seen rising 24.3 percent Y-o-Y to Rs 1,740 crore and EBITDA margin is expected to rise 150 basis points on yearly basis to 51.1 percent during September quarter.


Key issues to watch out for: 1) Management has guided for a mine production (MIC basis) of 1 million tonne in FY14; 2) Increase in production from Zawar and Kayar and further rampup at SK Mines will be critical to drive overall mine production.


Meanwhile, the stock price rallied 43 percent in past two months on hopes of progress on Vedanta buying government's 29.54 percent stake.

Government’s stake sale in Hindustan Zinc remains a key near-term trigger for the stock. Vedanta’s current offer to buy that stake is Rs 149 per share while the stock is ruling at Rs 135 per share.

first published: Oct 23, 2013 12:09 pm

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