Vedanta reported a mixed set of results for Q1FY20. Revenue declined by 3.7% yoy to Rs 21,374cr (expectation of Rs 21,223cr). EBITDA stood at Rs5,198cr, down 16.0% yoy against estimates of Rs5,478cr. The EBIDTA margin contracted 356bps yoy to 24.3%. The net profit stood at Rs1,351cr, down 11.9% yoy (expectation of Rs1,317cr).
Revenue growth was lower on yoy basis as lower commodity prices were partially offset by higher aluminium sales, volume addition from ESL, commencement of Gamsberg mine and currency depreciation.
Depreciation was higher by 20% yoy due to higher ore production in Zinc businesses, change in reserves estimates and asset capitalisation at Zinc India, commencement of Gamsberg operations and increased charge at Oil & Gas due to capitalisation.
Finance cost was lower by 8% yoy owing to capitalisation of borrowing cost and one-time commitment charges in Q1FY2019 partially offset by higher average borrowing cost in line with market trends.
Net debt was at Rs28,743cr on June 30, 2019, higher by Rs1,787cr yoy, primarily due to working capital unwinding and regrouping of lease liability to borrowing due to INDAS 116 implementation.
Cash and liquid investments stand at Rs30,774cr.
Net Debt/EBITDA currently stands at 1.3x.
Vedanta has fully unwound the CIHL Structured Investment via call option being exercised by Volcan
Vedanta Ltd ended at Rs. 164.05, down by 7.3 points or 4.26% from its previous closing of Rs. 171.35 on the BSE.
The scrip opened at Rs. 175.10 and touched a high and low of Rs. 175.60 and Rs. 162.80 respectively. A total of 2,49,84,278 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.
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