Moneycontrol Bureau
Vedanta Group’s Sesa Sterlite is expected to report a 21 percent drop in third-quarter net profit to Rs 1,480 crore (versus Rs 1,860 crore year-on-year) while revenues are expected to come in flat at Rs 19,300 crore (compared to Rs 19,523 crore), according to a CNBC-TV18 poll of analysts. Operating profit (EBIT) is expected to fall 11 percent to Rs 5,880 crore.
Sesa Sterlite’s earnings are expected to be predictable considering its profitability is largely (75-80 percent) driven by subsidiaries Hindustan Zinc and Cairn India, both of which have reported numbers.
Sesa Sterlite owns a 59.9 percent stake in Cairn India and 65 percent in Hindustan Zinc.
Low crude prices weighed on Cairn results while Hindustan Zinc’s results were good partially on the operating margin front.
Analysts will look for whether any benefits could come in from the 325 ktpa aluminium smelter at Balco and watch any improvement in the international zinc business.
Sesa Sterlite shares have fallen 37 percent after they hit a peak of Rs 318.4 in June 2014. The firm currently enjoys a market capitalization of Rs 59,129 crore.
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