Vedanta Q3 Results: Profit Surges 76%, Beats Estimates

Vedanta Ltd.'s profit in the third quarter of the financial year surged 76%, topping estimates.

The metal producer's net profit stood at Rs 3,547 crore in the quarter ended December, as compared to a profit of Rs 2,013 crore in the year-ago period, according to an exchange filing on Friday. That compared with the Rs 3,224-crore estimate of analysts polled by Bloomberg.

• Revenue up 10% to Rs 39,115 crore versus Rs 35,541 crore (Bloomberg estimate: Rs 37,288 crore).

• Ebitda up 30% to Rs 11,104 crore versus Rs 8,531 crore (Bloomberg estimate: Rs 10,435 crore).

• Margin expands to 28.4% versus 24% (Bloomberg estimate: 28%).

• Net profit up 76% to Rs 3,547 crore versus Rs 2,013.00 crore. (Bloomberg estimate: Rs 3,224 crore).

The company's 10% revenue uptick was mainly led by three segments:

• Zinc International segment's revenue rose 42% year-on-year to Rs 1,045 crore

• Aluminium business saw revenue rise 26% year to Rs 15,306 crore.

• India zinc and lead segment saw revenue rise 21% to Rs 6,833 crore.

Vedanta's earnings also benefited from a 7% annual drop in power and fuel costs, higher zinc and aluminum prices.

Here's how Vedanta's various segments performed in Q3.

Vedanta's aluminium business recorded its highest-ever quarterly metal production at 613 kilo tonnes, marking a 2% uptick. The segment did see an annual uptick in its cost of production to $1,878 per tonne versus $1,735 a year ago. One of the reasons for this could be higher alumina costs during the quarter

Vedanta's oil & gas segment continued to drag, while total revenue fell 22% to Rs 2,636 crore. This was mainly driven by a 19% fall in production to 99,400 barrels of oil equivalent per day. The segment also saw a 17% uptick in its operating expenditure per barrel during the quarter.

Vedanta's India-based Zinc business saw its mined metal production dip 2% sequentially to 265 kilotonnes, while refined metal production remained stable at 259 kilotonnes. The refined metal cost of production saw a fall of 5% annually to $1041 per tonne.

Vedanta's International zinc segment production saw a 12% growth, while recording its lowest cost of production at $1002 per tonne. The growth in the Zinc International business was driven by Gamsberg, where phase 2 expansion is targeted to be completed by the second half of the next fiscal.