Hindustan Zinc is expected to post net profit of Rs 1945 crore in September quarter down 10.9 percent from Rs 2184 crore. According to CNBC-TV18 poll, the company's net income may slip 3.2 percent to Rs 3680 crore against Rs 3802 crore on annual basis.
Hindustan Zinc is expected to outperform on account of significantly higher volumes and impressive cost performance. Operating profit may fall 9.5 percemt at Rs 1810 crore in Q2FY16 compared to Rs 1999.59 crore in year-ago period while operating profit margin (OPM) may be at 49.2 percent against 52.6 percent (Y-o-Y).
Analysts polled by CNBC-TV18 poll say that reversal of higher DMF provisions will aid margins. DMF has been notified at 30 percent of royalty but in Q1FY16 the company was providing for DMF at 50 percent.
However, sharp fall in LME may impact earnings. LME base prices have been week as LME Zinc price was down 15 percent (Q-o-Q) and down 20 percent (Y-o-Y) while LME lead price was down 11 percent (Q-o-Q) and down 21 percent (Y-o-Y).
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
