Vedanta Q4 Results Review - Revenue Beats Estimate; Ebitda Inline: Motilal Oswal

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. .Motilal Oswal Report.Vedanta Ltd.’s consolidated net sales stood at Rs 379 billion (down 5% YoY/up 11% QoQ) in Q4 FY23, 7% above our estimate of Rs 353 billion. Revenue growth was fueled by better performance across all the verticals (especially aluminum, copper and iron ore) during the quarter.Vedanta’s consolidated Ebitda was at Rs 95 billion (down 31% YoY/up 34% QoQ) in Q4 FY23, in line with our estimate of Rs 91 billion. Aluminum vertical grew 93% QoQ to Rs 19 billion; Hindustan Zinc Ltd. was up 15% QoQ to Rs 43 billion and iron ore vertical jumped ~five times QoQ to Rs 3.6 billion. All the verticals were profitable during the quarter.Vedanta’s adjusted profit after tax stood at Rs 32 billion (down 50% YoY/up 106% QoQ) against our estimate of Rs 37 billion. The miss was led by higher finance cost and depreciation, partially offset by higher other income and lower taxes.London Metal Exchange prices across the non-ferrous portfolio improved QoQ. Zinc/lead/copper/aluminum prices were up 4%/2%/12%/3% on a QoQ basis. The company’s sales volumes across the sector improved QoQ (except the oil and gas vertical). Sales for steel/aluminum/zinc/iron ore rose 30%/2%/5%/ 21% in Q4 FY23. Vedanta’s net debt stood at ~Rs 445 billion and net debt/Ebitda rose to 1.3 times in FY23 from 0.5 times in FY22.Coal linkage for the aluminum business stood at 66% and with the commissioning of Jamkhani mines it should improve further to 80% by end FY24, thereby lowering cost of production in the coming quarters.Vedanta’s total dividend payout for FY23 stood at Rs 101.5 per share..Click on the attachment to read the full report:.Ratnamani Metals & Tubes Q4 Results Review — Healthy Show; Ebitda Margin Surprises Positively: ICICI Direct.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 - Revenue Beats Estimate; Ebitda Inline: Motilal Oswal

Cost of production set to decline as coal linkage improves.

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