Vedanta Q4 Results: Profit Nearly Doubles On Higher Commodity Prices
The logo of Vedanta Resources Plc sits on a newly molded aluminum ingot. (Photographer: Oliver Bunic/Bloomberg)

Vedanta Q4 Results: Profit Nearly Doubles On Higher Commodity Prices

Vedanta Ltd.’s quarterly profit nearly doubled beating estimates on higher prices of commodities.

Net profit of billionaire Anil Agarwal-controlled miner rose 95% quarter-on-quarter to Rs 6,432 crore in the quarter ended March, according to its exchange filing. The compared with average estimate of Rs 3,989 crore by analysts tracked by Bloomberg.

Net sales rose 24% on a sequential basis to Rs 28,206 crore, the highest since quarter ended March 2018. Analysts had forecast 24,969 crore. The growth was aided by a rise in volumes at aluminium, Zinc and iron ore businesses, higher power sales Talwandi Sabo Power Ltd.

Earnings before interest, tax, deprecation and amortisation ( EBITDA) rose 17% to Rs 9,037 crore against the estimated Rs 8,863 crore estimate. Operating margin contracted to 32%, down from 34% in the preceding quarter and below the estimated 36%.

Concall Highlights

  • Clocks lowest aluminium cost of production in the last seven years at $ 1,347 per tonne, down 20%.

  • Clocks lowest ever Zinc cost of production at $954 a tonne, lower by 9%.

  • Share of silver in Ebitda rose to a third.

  • FY21 net debt to Ebitda at 0.9 times, the lowest since FY18.

  • Expects Lanjigarh project completion by Q1 FY2023.

  • Capex of Rs 3,500-4,000 crore reserved for Lanjigarh refinery.

  • Capex for oil & gas division sizeably scaled down.

  • Capex guidance for FY22 stands at $0.7 billion, the lowest since FY2017.

  • Oil & gas division production guidance for FY22 stood at 175-185 thousands of barrels of oil equivalent per yea compared with Q4 exit rate of 173 kboepd.

  • Net debt of Vedanta Resource Ltd. stood at $7.2 billion and consolidated debt stood at $10.5 billion.

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