Vedanta Ltd.'s second-quarter net profit declined by more than half missing estimates, as metal prices fell and costs remained elevated.
The mining company's profit declined 59% sequentially to Rs 1,808 crore in the quarter ended September, according to its exchange filing. That compares with the average estimate of Rs 2,036-crore by analysts tracked by Bloomberg.
Vedanta Q2 FY23 (Consolidated, QoQ)
Revenue fell 5% at Rs 36,654 crore against the Rs 34,758 crore forecast
Operating profit fell 26% at Rs 7,699 crore, compared with estimated Rs 7,797.3 crore
Ebitda margin narrowed to 21% compared with 26% in the preceding three months
"Our growth and vertical integration projects, aimed to reduce market volatility impact and create shareholders’ , are progressing
well," its Chief Executive Officer Sunil Duggal said in a statement.
The company generated free cash flow (pre capex) of Rs 8,369 crore in the quarter ended September underpinned by robust operational and financial performance, he said.
Segment-Wise Ebitda (QoQ)
Zinc India registered 17% decline to Rs 4,342 crore.
Zinc International rose 0.3% to Rs 591 crore.
Oil and gas unit witnessed a 3% fall to Rs 2,018 crore.
Aluminium unit witnessed a decline of 66% to Rs 761 crore.
Power division’s operating profit stood at Rs 141 crore, up 74%.
Iron ore segment dropped 41% to Rs 213 crore.
Copper India registered an operating profit of Rs 15 crore against loss of Rs 14 crore.
Billionaire Anil Aggarwal-controlled miner's consolidated net debt stood at Rs 32,144 crore compared with Rs 24,414 crore for the quarter ended March 2022.
Its net debt was up 20%, sequentially.
Shares of Vedanta closed 1.21% lower before the results were announced, compared with a 0.28% gain in the benchmark NSE Nifty 50.