Vedanta (VEDL) reported the highest ever first quarter EBITDA but missed our estimates by 11%. Consolidated revenue grew 36% YoY but declined 3% QoQ to INR386b in 1QFY23. Consolidated EBITDA stood at INR102b, flat YoY but down 25% QoQ. Attributable PAT (Post-MI) was flat YoY but down 29% QoQ to INR42b. While revenue was 5% above our estimate, EBITDA and PAT were 11% and 3% lower than our estimates, respectively. LME prices remained the driving factor for profitability in the quarter. On a YoY...
The general evaluation of VEDANTA (IN), a company active in the Steel industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date February 4, 2022, the closing price was INR 356.35 and i...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Q3FY20 Result Highlights: in-line operating profits Vedanta (VEDL IN) reported EBITDA of Rs65.1bn. Adj. of one-time cost recovery in Oil & gas business (Rs12.76bn) and reversal of RPO liability in aluminium business (Rs4.6bn), EBITDA stood at Rs47.8bn (IDFCe: Rs48.2bn), up ~8% qoq, primarily due to higher EBITDA in HZ and aluminium offset by lower profitability in oil & gas segment. Ex-HZ, EBITDA stood at Rs25.bn, up 6.2% qoq. Major segments like Zinc and Oil & Gas contributed 81% to EBITDA v...
Vedanta: Aluminum business turning around (VEDL IN, Mkt Cap USD7.2b, CMP INR138, TP INR142, 3% Upside, Neutral) Production ramp-up key monitorable; sharp price correction worrying Vedanta's (VEDL) 3QFY20 results reflect the gains from the ongoing structural cost reduction in the aluminum business. The next leg of growth is now dependent on the success of the guided production ramp-up in the oil & gas and zinc businesses. The sharp recent correction in commodity prices due to demand wor...
Q2FY20 Result Highlights: Aluminium disappoints Vedanta (VEDL IN) reported lower than expected EBITDA of Rs44.2b (IDFCe: Rs47.9bn), down ~15% qoq, primarily due to loss in aluminium segment and lower profits in steel business offset by better than expected performance in International Zinc, oil & gas and Iron ore segment. Ex-HZ, EBITDA stood at Rs23.6bn, down 15% qoq. Major segments like Zinc and Oil & Gas contributed 91% to EBITDA vs 84% in Q1FY20. With stable volume and lower discount to ...
VEDANTA: Slight miss led by Aluminum and Steel; Cutting estimates for Aluminum business (VEDL IN, Mkt Cap USD7.4b, CMP INR144, TP INR150, 4% Upside, Neutral) Vedanta's (VEDL) EBITDA of INR44b (-15% QoQ) was below our estimate of INR47.2b (6% miss) due to higher cost of production (CoP) in the aluminum business and lower margins in the steel business. Other income increased to INR8.6b from INR3.8b in the previous quarter, led by mark-to-market gain on its investments. PBT declined 26% QoQ ...
Q1FY20 Result Highlights: weak operating performance Vedanta (VEDL IN) reported lower than expected EBITDA of Rs51.98b (IDFCe: Rs56.2bn), down 15.3% qoq due to weak profitability across business segments except power and Oil & Gas. Profitability was lower in Zinc India (lower volumes and higher CoP), Zinc International (adverse product mix, lower realisation and higher CoP), aluminium (lower realisation), iron ore, and steel business (lower realisation and volume). Major segments like Zinc an...
Vedanta: Aluminum and Zinc International drive slight miss (VEDL IN, Mkt Cap USD8.8b, CMP INR164, TP INR150, 9% Downside, Upgrade to Neutral) EBITDA at INR52b (-15% QoQ) was below our est. of INR54.9b on lower-than-expected volumes in Aluminum and realization in Zinc International. Other income declined 77% QoQ to INR3.8b (est. INR6b) on mark-to-market losses on its structured investment. Adj. PAT decreased 64% QoQ/39% YoY to INR9.3b (our est. INR10.9b). Aluminum EBITDA/t declined USD66 ...
VEDANTA: Lower CoP in aluminum and zinc-int drives beat; Capital allocation concerns remain; Maintain Sell (VEDL IN, Mkt Cap USD8.7b, CMP INR163, TP INR144, 12% Downside, Sell) VEDL's 4QFY19 EBITDA grew 9% QoQ to INR61.3b (our estimate: INR54.3b). Lower cost of production (CoP) in aluminum and zinc international was the key driver of its growth and better-than-estimated performance. Other income increased 16% QoQ (+64% YoY) to INR16.3b (our estimate: INR2.9b), led by a mark-to-market gain on...
Q4FY19 Result Highlights: in-line operating results Vedanta (VEDL IN) reported in-line EBITDA of Rs61.4b (IDFCe: Rs60.0bn), up 8.7% qoq due to higher profits from zinc international (higher prices, volume and lower CoP), aluminium (lower CoP offsetting lower volume & prices), iron ore (higher volume) & steel business (higher volume, lower CoP offsetting lower steel prices). Major segments like Zinc India and Oil & gas reported lower EBITDA due to lower volume in zinc and lower oil prices. Tho...
Q3FY19 Result Highlights: Aluminium disappoints Vedanta (VEDL IN) reported in-line EBITDA of Rs56.4b, up 8.4% qoq due to higher profits from zinc business on account of higher volumes and prices partially offset by loss in aluminium due to lower realisation and higher cost. However, VEDL’s investment of ~US$500m in buying economic interest in a structured investment in Anglo American Plc from its parent company, Volcan overshadows the earnings. Oil & Gas Segment reported a ~3% qoq decline in...
Vedanta: EBITDA in line, but MTM gains lead to PAT beat; Related-party transaction will de-rate the stock; downgrade to Sell (VEDL IN, Mkt Cap USD10.3b, CMP INR194, TP INR162, 17% Downside, Downgrade to Sell) Vedanta’s (VEDL) 3QFY19 EBITDA increased 8% QoQ to INR56.5b (in-line). Zinc-India and Zinc-Int were the key drivers of this growth on higher production and better prices, while aluminum was a drag due to a fall in LME and contraction of premium. Copper smelter remains shut pending re...
Q2FY19 Result Highlights: Aluminium faces headwinds both in realisations and costs Vedanta (VEDL IN) reported in-line adjusted EBITDA of Rs53.4bn, down 18% qoq (1.6% lower than IDFCe) due to lower profits from aluminium and zinc businesses on account of higher CoP and lower realisation. EBITDA at Zinc India (HZ) stood at Rs 23.3bn, down 14% qoq and blended EBITDA/t of US$1,595, down 17% qoq due to lower zinc prices (-13% qoq). Oil & Gas Segment reported a 9.4% qoq growth in EBITDA to Rs20...
Q1FY19 Result Highlights: Aluminium surprises positively Vedanta (VEDL IN) reported in-line adjusted EBITDA of Rs65.3bn, down 18% qoq (2% lower than IDFCe) due to lower profits from zinc businesses on account of lower volume and higher CoP, partly offset by higher oil & gas business (due to ~14% qoq higher oil realisation to US$67.2/bbl). Reported EBITDA of Rs62.8bn includes forex loss of ~Rs2.5bn. The company has started reporting aluminium pot relining expenses below EBITDA since Q4FY18. ...
Vedanta: Miss across businesses; zinc and oil production growth ahead; Brace for LME and alumina squeeze for Aluminum; Maintain Buy (VEDL IN, Mkt Cap USD12.0b, CMP INR222, TP INR269, 21% Upside, Buy) Vedanta’s (VEDL) 1QFY19 EBITDA declined 20% QoQ (+29% YoY) to INR62.8b, missing our estimate by 8% due to lower-than-expected volumes and higher-than-expected cost at Zinc-India, Zinc-Int and O&G, partially offset by a stronger performance at aluminum and iron ore. Finance cost inched up led by...
Event The Tamilnadu Government ordered to close Vedanta’s 400ktpa copper smelter Plant at Tuticorin permanently. This was after the protests by the local residents who claim that the smelter caused pollution Details The plant has been shut down since March 2018-end when the Tamil Nadu pollution control Board has not provided permission to run the plant. We note that the plant remained shut down earlier too in 2013 due to a case at the National Green Tribunal. The plant provide employment...
Q4FY18 Result Highlights: Volume led growth Vedanta (VEDL IN) reported EBITDA of Rs78bn includes ~Rs3.5bn accounting adjustment related to capitalisation of aluminium pot relining expenses. Adjusted for the same, EBITDA stood at Rs74.9bn, up 11% qoq (higher by 3.5% from IDFCe). EBITDA was supported by VEDL’s India zinc (up 12% qoq due to lower CoP and higher volume), aluminium (higher volume), Oil & gas (higher crude prices) and copper (higher volume along with improved product mix). This wa...
VEDANTA: Strong operating performance; O&G and HZL capex raised; Uncertainty in copper and iron ore; Maintain Buy (VEDL IN, Mkt Cap USD16b, CMP INR286, TP INR345, 20% Upside, Buy) Vedanta's (VEDL) 4QFY18 EBITDA increased 16% QoQ to INR78.4b (est. of INR73b), driven by growth in zinc-India, O&G, copper, aluminum, partially offset by a decline in iron ore and zinc-int. Aluminum EBITDA beat of 69% was largely driven by capitalization of pot line relining expenses. Cost of production (CoP) at z...
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