Vedanta Q2 Results: Profit Falls By More Than Half, Margin Narrows
Vedanta's Q2 net profit declined by more than half missing estimates, as metal prices fell and costs remained elevated.
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’ value, 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.