State-owned Miniratna firm Hindustan Copper is poised to report a significant boost in its second-quarter earnings, with brokerage Anand Rathi forecasting a 118.7% year-on-year increase in net profit. The company, set to release its Q2 results on November 11, is projected to achieve a net profit of Rs 402 crore, up from Rs 183.8 crore in the same period last fiscal year.
This robust performance is expected to be fueled by a combination of higher metal-in-concentrate (MIC) sales volumes, sustained elevated copper prices, and favorable rupee depreciation. Anand Rathi, which has termed Hindustan Copper a top pick, estimates the company's revenue to rise 59.4% to Rs 1144.5 crore for the quarter, compared to Rs 718 crore previously.
Strong Operational and Financial Projections
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) are also predicted to see substantial growth, climbing 102.8% year-on-year to Rs 572.1 crore from Rs 282.1 crore. The EBITDA margin is expected to remain healthy at approximately 50%, though slightly moderating from 54.2% in the preceding quarter. The profit after tax (PAT) margin is estimated at 35.1%.
Operationally, MIC sales volumes are projected to increase by 23.8% year-on-year, reaching 7,520 tonnes compared to 6,836 tonnes in Q2 of the previous fiscal. This improvement in volumes is a critical factor supporting the anticipated revenue growth.
Q1 Performance and Market Context
In the first quarter of the current fiscal year, Hindustan Copper had already demonstrated strong growth, reporting a profit of Rs 353 crore, a 163% jump from the Rs 134 crore reported a year earlier. Revenue from operations also saw an 81.4% rise to Rs 936.5 crore in Q1.
Shares of Hindustan Copper closed 0.45% lower at Rs 429.85 apiece on Monday. The stock has delivered impressive returns over the long term, zooming 222.83% in five years and 661% over the past decade, solidifying its status as a multibagger.
Key Factors for Future Growth
Investors will be closely monitoring several key factors in the coming months. The trajectory of MIC sales volumes in the second half of fiscal year 2027 (FY27) will be crucial, alongside further improvements in copper yields. Additionally, management's outlook on global copper prices will play a significant role in determining the company's sustained growth and profitability. While the earnings outlook remains favorable, the sustainability of copper prices and the company's ability to enhance production and sales volumes are vital for long-term tracking.