Vedanta stock nosedives over 5% after announcement of production data for Q3 and 9MFY22

4 Jan 2022 , 01:07 PM

Vedanta has announced its production data for the third quarter and nine months ending December 2021 period. On Tuesday, Vedanta stock was under pressure.

At around 1.03 pm, Vedanta was trading at Rs335 per piece down by 5.3% on Sensex. The stock has touched an intraday high and low of Rs357.70 per piece and Rs330.10 per piece respectively.

Here’s segment-wise production performance as per the regulatory filing:

1. Aluminium:

The Lanjigarh refinery produced 472,000 tonnes of alumina in Q3 FY22, 16% higher as compared to Q3 FY2021 and 8% lower as compared to Q2 FY2022. The cast metal aluminium production at our smelters stood at 579,000 tonnes in Q3 FY22, higher 16% in comparison to Q3 FY2021 and 2% as compared to Q2 FY2022.

Record Aluminium production of 16,97,000 tonnes in nine months ended FY2022, 18% higher y-o-y, and Alumina production was 1,465,000 tonnes, 9% higher y-o-y.

2. Zinc India:

Ever highest quarterly Integrated metal production 261,000 tonnes, up 11% as compared to Q3 FY2021 & 25% compared to Q2 FY2022, mainly due to better plant and mined metal availability. Integrated zinc production was 214,000 tonnes, up 17% as compared to Q3 FY2021 and 32% as compared to Q2 FY2022. Integrated lead production was 47,000 tonnes for Q3 FY2022, down 10% as compared to Q3 FY2021 on account of changing mode of Pyro plant (CLZS) operations from Lead mode to Zinc-Lead mode.

Ever highest mined metal production 722,000 tonnes in nine months ended FY2022 up 6% y-o-y in line with higher ore production at Rampura Agucha, Sindesar khurd & Zawar mines and increased recovery, partly offset by lower overall mining grades. Nine months ended FY2022 metal production was 707,000 up 5% as compared to Nine months ended FY2021 in line with better plant and concentrate availability, while silver production was 4% lower y-o-y at 485 MT in line with lower Lead metal production & depletion of silver WIP.

3. Zinc -International:

Total production for Q3 FY2022 was 52,000 tonnes, 11% lower compared to Q3 FY2021 and 4% compared to Q2 FY2022.

Total production for nine months ended FY2022 was 168,000 tonnes, higher by 14% as compared to nine months ended FY2021 mainly due to higher tonnes treatment and COVID-19 restrictions which were in place in FY2021.

4. Oil & Gas:

Average gross operated production during Q3 FY2022 across our assets was 159,230 barrels of oil equivalent per day (boepd), flat compared to Q3 FY2021 and down by 4%, compared to Q2 FY2022.

Average gross operated production across our assets was at 163,146 boepd in nine months ended FY2022, 1% up as compared to nine months ended FY2021. Production from Rajasthan block was at 139,452 boepd, 7% up as compared to the same period in FY2021. 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. Production from the offshore assets, was at a combined 23,670 boepd, down 22% as compared to the same period in FY2021, owing to natural field decline.

5. Iron Ore:

There was no production at Goa due to the continuation of suspension of mining pursuant to the Hon’ble Supreme Court judgment dated 7th February 2018 directing mining operations of all companies in Goa to stop with effect from 16th March 2018.

At Karnataka, production volume in Q3 FY2022 was 1.2 million tonnes, lower by 14% as compared to Q3 FY2021 and 4% as compared to Q2 FY2022 due to impact on operations because of heavy rainfall in Q3 FY2022.

Pig iron production was at 2,02,000 tonnes in Q3 FY2022, higher by 39% as compared to Q3 FY2021 due to shut down in Q3 FY2021 for carrying out relining activities at one of the furnaces and 3% lower as compared to Q2 FY2022.

6. Steel:

Total saleable production for Q3 FY2022 was 350 KT, higher by 3% as compared to Q3 FY2021 and 20% as compared to Q2 FY2022 owing to capital shutdown at Blast Furnace in Aug’21.

Total Saleable production for nine months ended FY2022 was 932 KT, 7% higher as compared to nine months ended FY2021 mainly due to COVID-19 restrictions which were in place in FY2021.

7. Facor:

Ore production volume in Q3 FY2022 is 37% higher as compared to Q3 FY2021 due to continuous operations of both mines. It is 151% higher as compared to Q2 FY2022 due to monsoon in Q2 FY2022.

Ore production volume in nine months of FY2022, 125% higher as compared to nine months of FY2021 due to continuous operations and enhanced productivity from both mines.

8. Copper:

Silvassa refinery and wire rod plant continues to operate. This enables Vedanta to cater to the domestic market. Production from the Silvassa refinery for Q3 FY2022 was up by 33% as compared to Q3 FY2021 amid easing of the nationwide COVID-19 restrictions which were prevailing in the comparable quarter (s). The production for Q3 FY2022 was up by 11% as compared to Q2 FY2022 mainly due to resumption of domestic copper demand in the market post ease of COVID-19 restrictions.

The production was up by 38% y-o-y largely due to resumption of domestic copper demand after ease of COVID-19 restrictions.

9. Power:

During Q3 FY2022, power sales were 3,450 million units higher by 68% as compared to Q3 FY2021 and 19% higher as compared to Q2 FY2022.

Power sales at TSPL were 5,776 million units in nine months ended FY2022, 40% higher as compared to nine months ended of FY2021. Availability was on lower side at 70% for nine months ended FY2022 as compared to 79% for nine months ended FY2021. This was primarily due to couple of technical issues encountered in units in FY2022. However, the opportunity has been used for complete overhauling of unit-1 and unit-3 which ensures robust availability in H2.