Vedanta Q3 results, dividend announcement on Friday. Earnings call, analyst estimates & more

Vedanta will announce its quarterly results on Friday. Analysts largely expect the Anil Agarwal-led company to report a 70 per cent plunge in net profit for the December quarter on an up to 10-12 per cent fall in sales. Margin is seen contracting sharply on year-on-year (YoY) basis.    

Results estimates

PhillipCapital sees profit after minority tax for Vedanta to come in at Rs 1,085.80 crore, down 74.2 per cen YoY over Rs 4,201 crore in the same quarter last year. Profit before minority interest is seen falling 66.1 per cent YoY to Rs 1,817.30 crore. Revenue is see flattish at Rs 34,371 crore compared with Rs 34,097 crore.

Volumes were flattish to marginally lower across business segments, it noted. Production once again failed to ramp up, PhillipCapital said.

Centrum Broking sees profit for the metals & mining major plunging 71.3 per cent YoY to Rs 1,205 crore. It sees sales falling 12.2 per cent YoY to Rs 32,167 crore. Ebitda is seen falling 41 per cent YoY to Rs 6,329 crore.

Kotak Institutional Equities sees profit for the quarter at 1194.50 crore, down 71.6 per cent YoY. It sees net sales dropping 9.7 per cent YoY to Rs 33,099 crore.  Margin is seen eroding to 19.2 per cent against 19.6 per cent in September quarter and 31.5 per cent in the same quarter last year.

This brokerage anticipated a 41 per cent YoY and 11.5 per cent sequential decline in Ebitda due to weaker commodity prices across segments, lower benefit of hedges unlike previous quarter and weak demand.

“We forecast (1) aluminium Ebitda to decline 73 per cent YoY but increase 34 per cent sequentially, mainly led by lower aluminium prices, partly offset by sequential coal cost decline, oil and gas division to witness 5.6 per cent QoQ drop in Ebitda due to windfall tax and lower crude prices and Zinc India division to see a 16 per cent QoQ drop in Ebitda due to lower zinc prices,” it said.

Earnings call, dividend

The day would also see the Anil-Agarwal led company considering a proposal of dividend payment. If declared, Vedanta would have Saturday, February 4, as record date for the purpose of determining the entitlement of the equity shareholders for the said dividend. Vedanta would also host an earnings conference call on Friday from 5:30-6:30 PM IST.