Vedanta's Q1 net profit at Rs4421 crore

29 Jul 2022 , 08:13 AM

Major mining and metals company Vedanta announced a total net profit of Rs4,421 crore for the quarter ending in June 2022, up 4.66 percent year over year (YoY). However, according to Bloomberg, this was less than street predictions, which were Rs4,572 crore. Vedanta’s net profit fell 23.7% sequentially from Rs5,799 crore.

The company’s consolidated revenue for the first quarter totalled Rs38,251 crore, up 36.10% YoY, thanks to increasing sales volume across all sectors, rising commodity prices, and successful strategic hedging. Revenue was estimated by Bloomberg to be Rs37,698 crore.

However, revenue decreased by 3% from Rs39,342 crore sequentially.

Earnings before interest, taxes, depreciation, and amortization (Ebitda), announced by Vedanta for the first quarter of 2017, increased by 7% to Rs10,741 crore. However, it was a 22% decrease from the March quarter, when Ebitda was Rs13,768 crore. Vedanta’s Ebitda was estimated by Bloomberg to have been Rs12,292 crore in the first quarter.

Although operational performance increased in the June quarter, the company said that improvements were only partially offset by higher production costs brought on by rising input costs. In comparison to a year ago and the March quarter, the Ebitda margin was 32% in the first quarter.

In addition to the production of oil, gas, and power, Vedanta also engages in the business of metals including steel, iron ore, zinc, aluminium, copper, and aluminium.

Sunil Duggal, CEO of Vedanta, stated during a media call that improved coal connectivity helped reduce market supply restrictions. “In the future, a significant reduction in commodity prices will reduce the cost pressure.”

Vedanta’s consolidated net debt for the quarter ending in June was Rs26,799 crore as opposed to Rs24,414 crore for the quarter ending in March 2022.

Vedanta shares closed at Rs245.50 per share on the BSE, up 0.80% from the previous day’s finish. Vedanta’s market value as of Thursday’s closure was Rs91,257.18 crore.