Operational revenue during the quarter under review of Rs 5,540 crore, lower by 6 per cent from a year-ago on account of lower metal prices, partly offset by rupee depreciation. On sequential basis, revenue grew 16 per cent primarily led by higher volume in zinc, lead and silver and rupee depreciation also helped.
EBITDA (earnings before interest, tax, depreciation and amortization) at Rs 2,840 crore came in line with analyst estimates, declining 12.5 per cent YoY, impacted by lower metal prices and higher mine development costs. EBITDA margin at 51.2 per cent declined by 355bps YoY.
“The management expects costs to reduce to around USD950/t in Q4FY19 with the full impact of reduction in diesel and coal costs coming into play as well as higher production volumes. The proportion of lower cost linkage coal is expected to increase to 15-20 per cent from 3 per cent in Q3FY19,” analysts at Antique Stock Broking said in result review.
Zinc outlook would be supported by the continued deficit expected in refined zinc in CY19 and low global inventory levels, the brokerage firm said with ‘hold’ rating on the stock with a target price of Rs 278 per share.