Vedanta Q3 Results: Profit Beats Estimates As Margin Widens
Molten aluminium is poured from a crucible transport and tilting vehicle into a furnace in the cast house unit of Vedanta’s aluminium smelter in Jharuguda district, Odisha. (Photographer: Dhiraj Singh/Bloomberg)

Vedanta Q3 Results: Profit Beats Estimates As Margin Widens

Vedanta Ltd.’s quarterly profit beat analysts’ expectations as its operating margin widened.

Net profit rose 49.2 percent over last year to Rs 2,348 crore in the quarter ended December, the mining conglomerate said in an exchange filing. Analysts tracked by Bloomberg were expecting profit to fall to Rs 754 crore.

  • Revenue fell 9.8 percent year-on-year to Rs 21,360 crore—higher than the estimated Rs 20,233.2 crore.
  • Operating profit increased 15.4 percent on an annual basis to Rs 6,514 crore.
  • Operating margin widened to 30.5 percent from 23.8 percent a year ago.

The company’s earnings were impacted by subdued prices of commodities and lower volumes in its zinc, and oil and gas businesses. Higher production from the iron ore and steel unit offset some of the impact. The company, however, said that a past exploration recovery in its oil and gas business improved cost of production aiding margin.

“Our aluminium business continues to benefit from improved integration and systemic cost improvements,” Srinivasan Venkatakrishnan, the company’s chief executive officer, was quoted as saying in a media statement. “In our oil and gas business, the completion of new facilities and hook up of new production wells paves the way for higher volumes ahead.”

Other Highlights

  • Total cash and liquid investments stood at Rs 35,205 crore.
  • Net debt to Ebitda ratio at 1.0.
  • Gross debt stood at Rs 58,589 crore.

Shares of Vedanta Ltd. closed 2.13 percent lower ahead of the earnings announcement, while the benchmark BSE Sensex ended trade 0.47 percent down.

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