Vedanta Q2 Results Review - Cost Efficiency Improves Margins Across Segments: Systematix

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Vedanta Ltd.’s Q2 FY24 consolidated Ebitda at Rs 114.8 billion (+49.1% YoY, +78.8% QoQ) was 75% above our estimate largely due to recognition of Rs 47.6 billion in revenue from operations in the oil and gas business relating to arbitration award granted by the government of India. Vedanta reported net loss after taxes of Rs 21.4 billion due to the impact of exceptional tax expense of Rs 61.3 billion relating to the new tax regime adoption. It posted strong performance across segments helped by higher volumes and lower cost of production partially offset by lower commodity prices. Aluminium/oil and gas/ Iron ore and steel segment Ebitda rose 158.5%/190.4%/117.9% YoY led by higher volumes and low cost of production. Among the key businesses, aluminium production grew 1.7%/2.6% YoY/QoQ to 594 kilo tonne, while the cost of production fell 25.3%/6.1% YoY/QoQ. Zinc International segment reported Ebitda of Rs 2.8 billion (-51%/+2.5% YoY/QoQ) due to lower throughput and prices. Net debt decreased by Rs 14 billion during the quarter due to stronger cash flow generation, resulting in an improvement in the net debt/Ebitda ratio to 1.64 times from 1.88 times as of June 2023..Click on the attachment to read the full report:.Vedanta Q2 Results: Reports A Surprise Loss Of Rs 915 Crore On Exceptional Tax Charge.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Vedanta Q2 Results Review - Cost Efficiency Improves Margins Across Segments: Systematix

Adverse commodity price swings due to geopolitical instability and its impact on demand pose key risks.

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Vedanta Q2 Results Review - Cost Efficiency Improves Margins Across Segments: Systematix

Adverse commodity price swings due to geopolitical instability and its impact on demand pose key risks.

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