Q3 preview: Metal firms' sales likely to flatten, profits may plunge

Earnings may bottom out during Oct-Dec quarter, say analysts

Viveat Susan Pinto Mumbai

Base metal prices such as aluminium, zinc, copper, nickel and lead, have climbed up by 8-36 per in Q3

Subdued demand as well as volatile prices will likely weigh on earnings of metal companies for the third quarter of the ongoing financial year (Q3 of FY23), Bloomberg consensus estimates for the period show.

Year-on-year (YoY) net sales growth will be flat in Q3, Bloomberg data shows, while the bottom line will decline sharply by 60.4 per cent from a year ago.

Earnings before interest tax depreciation and amortisation (Ebitda) will fall by almost 42.1 per cent versus a year ago.

The data has been compiled from a sample size of the top-10 metal firms, including Tata Steel, Hindalco, JSW Steel, Vedanta and Hindustan Zinc.

Sector experts say that while the price of coking coal, used in making steel, has fallen nearly 31 per cent to $205 per tonne in Q3, the price of iron ore, which is also a key input in steel making, has risen by 26 per cent in the quarter under review. This mixed commodity trend will keep earnings mute

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First Published: Jan 18 2023 | 7:20 PM IST

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