Vedanta Q1 Results: Profit Tumbles 40%, Misses Estimates

Vedanta Ltd. reported a 40.3% decline in its net profit for the first quarter, missing analysts' estimates.

The metals and mining giant's profit fell to Rs 2,640 crore in comparison with Rs 4,421 crore in the year-ago period, according to an exchange filing on Friday. That compares with the Rs 3,287 crore consensus estimate of analysts tracked by Bloomberg.

Vedanta Q1 FY24 Highlights (Consolidated, YoY)

• Revenue down 12.66% to Rs 33,733 crore, as against a Bloomberg estimate of Rs 26,669 crore.

• Net profit attributable to owners of the company is down 40.29% at Rs 2,640 crore, as compared with a Bloomberg estimate of Rs 3,287 crore.

• Ebitda down 37.04% at Rs 6,420 crore. Analysts had estimated it at Rs 5,836 crore.

• Margin at 19% vs 26.4% due to weaker commodity prices, as against an estimate of 21.9%.

Segmentwise Ebitda (YoY)

• Domestic zinc, lead, and silver segments registered a 36.6% decline to Rs 3,314 crore.

• Zinc International fell 52.1% to Rs 282 crore.

• Oil and gas unit witnessed a 44.9% drop to Rs 1,145 crore.

• Aluminium unit saw a decline of 16.7% to Rs 1,817 crore.

• Power division's operating profit stood at Rs 287 crore, up 92.6%.

• Iron ore segment dropped 54.8% to Rs 363 crore.

• Copper registered an operating loss of Rs 2 crore.

Power is the only segment that offered some respite as earnings before interest, taxes, depreciation, and amortisation across all other segments fell as compared with the first quarter of the previous year.

Other Highlights

• The company has declared an interim dividend of Rs 18.5 per share in Q1 of FY24, implying an outflow of Rs 6,877 crore in dividend payments.

• The board approved Rs 1,305 crore capex for the Sijimali bauxite block in Odisha's Rayagada and Kalahandi districts. The block has estimated reserves of 311 million tonne of bauxite.

• The capex will be phased over the coming financial years and will be funded through internal accruals, according to the company's statement.

• Sunil Duggal's tenure as whole-time director and chief executive officer of the company will be completed on July 31. Arun Misra, the current CEO of the conglomerate's zinc business, has been chosen by the board as the additional director designated as an executive director of the company effective Aug. 1, subject to approval of the shareholders.

"As we continue to move forward, we remain committed to achieving operational excellence and enhancing our competitiveness in the market," Duggal said. "We are determined to lead the charge towards a more sustainable and responsible tomorrow."

Vedanta plans to spend Rs 14,000 crore on growth projects in the current fiscal.

Shares of Vedanta closed 1.44% lower at Rs 278.15 apiece before the results were announced on Friday, as compared with a 1.17% decline in the benchmark NSE Nifty 50.