ICICI Securities: Aluminium Drives Vedanta’s Q1 FY21 Beat

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Vedanta Ltd. reported higher than expected Q1 FY21 numbers. Aluminium Ebitda constituted approximately 72% of the Ebitda beat.The segment’s Ebitda/tonne surprised at 360/tonne U.S. dollar, of which 101/tonne U.S. dollar was on account of renewable purchase obligation (RPO) liability reversal.Adjusted for RPO liability, costs reached 1343/tonne U.S. dollar, down approximately 110/tonne U.S. dollar QoQ and approximately 420/tonne U.S. dollar YoY.Power contributed approximately 12% of the Ebitda beat, which can be attributed to 97% Talwandi Sabo Power Ltd. (TSPL) plant availability factor, while sales from TSPL was only 643 million units (down 76% YoY).TSPL receivables reduced in FY20.There has been significant cost reduction in Zinc International (22% YoY and 24% QoQ) and currency depreciation of the host countries played a big part.Production at Gamsberg is still at 25 kilo tonne as at June. Covid-19 lockdown makes assessment difficult for Rajasthan assets.The delisting process is underway; 300 million U.S. dollar again has been extended as an intercompany loan to Vedanta resources..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Aluminium Drives Vedanta’s Q1 FY21 Beat