Vedanta stock tanks ~4% on subdued numbers in Q2FY23

31 Oct 2022 , 01:54 PM

Vedanta Limited shares fell as much as 4% to Rs274 in intraday trade on Monday after the company reported a 60.8% yoy drop in consolidated net profit at Rs1,808 crore for the quarter ended September 30, 2022, due to higher expenses. In the previous fiscal year, the company earned a consolidated net profit of Rs4,615 crore.

During the July-September period, the company’s expenses increased to Rs33,221 crore, up from Rs23,171 crore the previous year. Its consolidated income increased to Rs37,351 crore during the quarter under review, up from Rs31,074 crore the previous year.

The company’s EBITDA fell 24% yoy to Rs8,038 crore, compared to Rs10,582 crore in Q2FY22. EBITDA margins fell 1,500 basis points to 25%, down from 40%.

The company announced that its board of directors has approved an increase in rolled product capacity at its subsidiary Balco from 50 KTPA to 180 KTPA at a revised cost of Rs595 crore. “When this project is completed, Balco will be placed in the high premium product segment,” Vedanta said.

At around 1.54 PM, Vedanta was trading 1.90% lower at Rs279.45 against the previous close of Rs284.85 on NSE. The scrip touched intraday high and low of Rs284.80 and Rs274.30 respectively.

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