Vedanta Ltd's Q4FY19 consolidated net profit declines 45.5% yoy to Rs2,615cr : Beats Estimates

The company’s consolidated revenue stood at Rs23,468cr, down 15.1% yoy and 0.8% qoq.

May 07, 2019 12:05 IST India Infoline Research Team

Vedanta Ltd Q4FY19

Consolidated Results Q4FY19: (Rs. in cr)

Q4FY19 YoY (%)
Revenue 23,468 [15.1]
EBITDA 6,135 [20.3]
EBITDA Margin (%) 26.1 [170]
Net Profit 2,615 [45.5]
***EBITDA margin change is bps

Vedanta's results for Q4FY19 beat consensus estimates on all fronts. Revenue fell by 15.1% yoy to Rs23,468cr (expectation of Rs22,542cr). EBITDA stood at Rs6,135cr, down 20.3% yoy against estimates of Rs6,046cr. The EBIDTA margin fell 170bps yoy to 26.1%. The net profit stood at Rs2,615 (expectation of Rs1,413cr).
  • Revenue growth was impacted on account of lower commodity prices, rupee appreciation and lower volume at Zinc India business. The same was offset by higher sales volume at ESL, Zinc International and Iron ore Karnataka.
  • Depreciation was higher (up 34.2% yoy) owing to non-cash impairment reversal and change in reserve estimates in Q4FY18 at Oil and Gas business, higher ore production at Zinc businesses and acquisition of ESL.
  • Interest expense was higher (up 16.3% yoy) owing to borrowing for ESL Acquisition, temporary borrowing at Zinc India, higher interest rates in line with market trends offset by higher interest capitalisation.
  • Other income for Q4FY19 stood at Rs1,628cr, up 77.5% yoy due MTM gains on treasury investment made by overseas subsidiary.
  • PAT was aided by lower effective tax rate (~22% v/s ~34% yoy).
  • Net debt was at Rs26,956cr on March 31, 2019, higher by Rs4,998cr yoy, primarily due acquisition of ESL.
  • Cash and liquid investments stand at Rs39,269cr.
  • Net Debt/EBITDA currently stands at 1.1x.

Technical View:

Vedanta Ltd ended at Rs. 163.40, down by 3.45 points or 2.07% from its previous closing of Rs. 166.85 on the BSE.
The scrip opened at Rs. 167.40 and touched a high and low of Rs. 170.15 and Rs. 162 respectively. A total of 1,38,14,673 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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