Vedanta Q4 Results Review - Cash Generation To Remain Elevated: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Vedanta Ltd.’s Q4 FY23 consolidated Ebitda at Rs 94.6 billion (-30.6% YoY, +33.8% QoQ) was 6% above our estimate. Strong performance in the aluminium (+93% QoQ Ebitda) and zinc international (+43% QoQ Ebitda) segments was offset by weak performance in the oil and gas division which saw Ebitda decline by 16% QoQ. Consolidated operating cash flow for FY23 remained strong at Rs 330 billion (-5% YoY) despite a 23% YoY decline in consolidated Ebitda in FY23. Ebitda to cash conversion (before working capital changes) remained strong at 99% in line with the three-year average of 100%. Management remains bullish on the overall commodities demand scenario and has stepped up groupwide capex by more than 40% to $1.7 billion for FY24. FY23 Dividend payout of Rs 299 billion (Rs 80/share) helped reduce debt at parent Vedanta Resources Ltd. by $2 billion. We believe dividend is likely to remain elevated at Rs 60-80/share over FY24/25 driven by a sharp reduction in energy costs, especially for coal, implying a yield of 22-29% providing strong downside support. Vedanta consumes more than 36 million tonne of coal across its various business and the sharp 70% drop in coal prices is positive..Click on the attachment to read the full report:.Vedanta Q4 Results Review - Revenue Beats Estimate; Ebitda Inline: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Vedanta Q4 Results Review - Cash Generation To Remain Elevated: Systematix

Strong performance in the aluminium and zinc international segments was offset by weak performance in the oil and gas division.

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