Vedanta Q4 business update: records increase in production of aluminium, zinc and iron ore

5 Apr 2022 , 11:28 AM

Vedanta Limited on Monday reported a rise of 8% in its production of aluminium and zinc and that of iron ore by 18%  during the fourth quarter ended March 31, 2022 as compared to its output during the same quarter a year ago.

The company stock was trading mostly flat at Rs421.55 up by Rs0.05 or 0.01% from its previous closing of Rs421.50 on the BSE, at around 11.20 am.

Alumina production at Lanjigarh refinery increased by 7% qoq and 1% yoy to 503,000 tonnes in Q4FY22.

“The cast metal aluminium production at our smelters was marginally lower on qoq basis due to lower operating days, however, it increased 8% yoy to 572,000 tonnes,” company said in a filing.

In FY22 the company achieved highest ever Alumina production of 1,968,000 tonnes with a 7% yoy increase. Aluminium production also touched record high of 2,268,000 tonnes with a 15% yoy increase; driven by production ramp up activities and operational efficiencies.

The company achieved highest ever quarterly Mined metal production of 295,000 tonnes in Q4FY22 since underground transition. This translates into 17% qoq and 3% yoy growth; supported by higher Ore production and better mining grades.

Integrated metal production was up 2% yoy to 260,000 tonnes. Integrated zinc production increased 8% yoy to 211,000 tonnes

The company achieved best-ever Mined metal production, crossed 1 million mark to reach at 1,017,000 tonnes in FY22. This translated into 5%YoY growth; supported by higher ore production across the mines

Overall production of zinc in Q4FY22 increased 5% qoq to 55,000 tonnes with ramp-up at Gamsberg. Overall production in FY22 was higher by 10% yoy to 223,000 tonnes with ramp-up at Gamsberg.

In Q4FY22, average gross operated production of oil & gas was 153,840 boepd.

Rajasthan block’s average gross production was lower by 3% qoq and 4%yoy to 132,443 boepd, mainly due to natural decline. The natural decline in the MBA fields has been partially offset by the continued gains realized from polymer injection in Bhagyam & Aishwariya fields and new infill wells brought online in Mangala, NI and ABH fields. Gross production from Development Area-1 (DA-1), Development Area-2 (DA-2) and Development Area-3 (DA-3) averaged 114,963 boepd, 17,327 boepd and 153 boepd; respectively.

Gas production from Raageshwari Deep Gas (RDG) averaged 144.5 million standard cubic feet per day (mmscfd) (equivalent to 24.1 kboepd); Gas sales post captive consumption at 119.6 mmscfd (equivalent 19.9 kboepd).

For FY22, average gross operated production was marginally lower by 1% yoy at 160,851 boepd. Rajasthan block’s average gross production was up 4% yoy to 137,723 boepd as the natural field decline has been offset by ramp-up of gas production, infill wells in Mangala field and impact of polymer injection in Bhagyam and Aishwariya fields. Combined production from the offshore assets declined 22% yoy to 23,089 boepd with natural field decline.

In Q4FY22 there was no iron ore production in Goa as mining remain suspended pursuant to the Hon’ble Supreme Court judgement dated February 7, 2018. We continue to engage with the Government for resumption of mining operations.
Karnataka Iron Ore - saleable ore production was higher by 14% qoq and 18% yoy to 1.4 million tonnes; led by operational efficiencies.
Pig Iron production was lower by 12% on qoq basis to 1,78,000 tonnes, amidst unplanned shutdown at one of the blast furnaces in the current quarter. However, it was higher by 14% on yoy basis as last year corresponding quarter was impacted due to shutdown at one of the furnaces for relining activities.

In FY22, Karnataka Iron ore production increased 8% yoy to 5.4 million tonnes. FY21 production was impacted by nationwide COVID-19 lockdowns.

Pig Iron production increased 33% yoy to 790,000 tonnes; supported by better furnace operations efficiency post shutdown in FY21. FY21 production was impacted by nationwide COVID-19 lockdowns.