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Vedanta Q4 Results: Profit Rises On Higher Sales

Net profit of Vedanta increased 39.3% sequentially to Rs 5,799 crore in the quarter ended March.

<div class="paragraphs"><p>Anil Agarwal, billionaire and chairman of Vedanta Resources Plc. (Photographer: Simon Dawson/Bloomberg)</p></div>
Anil Agarwal, billionaire and chairman of Vedanta Resources Plc. (Photographer: Simon Dawson/Bloomberg)

Vedanta Ltd.’s quarterly profit rose on higher sales, led by its aluminium division.

Net profit of the billionaire Anil Agarwal-controlled miner increased 39.3% sequentially to Rs 5,799 crore in the quarter ended March, according to its exchange filing. The profit, however, missed the Rs 6,243-crore consensus estimate of analysts tracked by Bloomberg. The company reported exceptional loss of Rs 330 crore (largely on aluminium and copper division).

  • The company’s net sales rose 16.7% to Rs 39,822 crore, against the Rs 37,161.5-crore forecast.

  • Operating profit rose 26.1% sequentially to Rs 13,633 crore, compared with the estimated Rs 13,107.5 crore.

  • Ebitda margin stood at 34.3% against 31.7% in the preceding three months and 35.2% estimated.

Vedanta’s aluminium division was the best performer even as cost of coal rose.

Segment-Wise Ebitda (QoQ)

  • Zinc India registered 13.7% growth to Rs 4,988 crore.

  • Zinc international rose 27.2% to Rs 467 crore.

  • Oil and gas unit witnessed a 37.6% increase to Rs 2,053 crore.

  • Aluminium unit witnessed a growth of 39.2% at Rs 5,218 crore.

  • Power division’s operating profit stood at Rs 188 crore, down 33.5%.

  • Iron ore segment rose 33.6% to Rs 548 crore.

  • Copper India registered a stable operating profit of 15 crore.

Debt Position

Vedanta’s consolidated net debt stood at Rs 24,414 crore for the quarter ended March 2022 compared with Rs 20,979 crore a year ago. Its net debt was down 23.9% sequentially.

Its board of directors in a meeting held on April 28 has approved first interim dividend of Rs 31.50 apiece.

Shares of Vedanta closed 0.35% down before the results were announced compared with a 1.21% gain in the benchmark Nifty 50.