Vedanta, a subsidiary of London-listed Vedanta Resources, is expected to report a 73 percent year-on-year degrowth in profit at Rs 441 crore for July-September quarter, impacted by lower commodity prices (especially oil business). According to analysts polled by CNBC-TV18, revenue is seen falling 19 percent to Rs 15,800 crore during same period.
Analysts feel profitability already priced in Hindustan Zinc and Cairn India results. Even more than 80 percent of operating profit already priced in from both companies.
Vedanta owns 59 percent stake in Cairn India and 65 percent in Hindustan Zinc.
Operating profit may fall 42 percent year-on-year to Rs 3,690 crore and margin may contract by 900 basis points to 23 percent in the quarter gone by.
According to analysts, progress on Vedanta-Cairn merger is key mover for the stock going ahead.
Factors to watch:-Aluminium business may drag due to fall in aluminium prices and sharp drop in premium while aluminum volumes may increase on back of higher output from Balco's new projects-Copper business may deliver a steady performance but volumes is seen lower due to maintenance shutdown of smelter-Zinc International may hit due to low metal prices and volumes-Iron ore business may continue to struggle owing to slow resumptions of mines and weak iron ore prices
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