Vedanta Q2 Results: Diversified mining co. returns to profitability; stock trades steady

For the September quarter, diversified mining player Vedanta announced its results on Friday. For the review period, the company reported a consolidated net profit of Rs 5,603 crore. PAT before exceptional items was however recorded at Rs 4,467 crore, up 230 per cent on-year.

In the same period last year, the Anil Agarwal-led company reported a net loss of Rs 915 crore. Zee Business analysts estimated the company's PAT to come in at Rs 2,672 crore.

The sharply lower tax expense at the concern at Rs 2,030 crore in contrast to Rs 9,092 crore reported in the same quarter, partially offered some support to the demerger-bound entity.

Consolidated revenue at the company rose 10 per cent year-on-year (YoY) to Rs 37,171 crore while the same was at Rs 33,738 crore in the same quarter of the previous year. Also, EBITDA during the review quarter jumped 44 per cent YoY to Rs 10,364 crore, in comparison to Rs 7,197 crore in the same period.

On a higher EBITDA, margin also jumped sharply to 34 per cent, a steep 900 basis points. EBITDA margin during Q2FY2024 was at 25 per cent.

In the press release, the company said that its net debt reduced sharply by around Rs 4,400 from the June quarter and stood at Rs 56,927 crore as on September 30, 2024.

Demerger on track and in its final stages, with shareholder and creditor meetings scheduled in the coming months, it added.

Ajay Goel, CFO, Vedanta Limited said, “This strong performance is driven by cost efficiency, volume growth, and favourable commodity prices. Additionally, we raised $1.4 billion at Vedanta through a $1 billion QIP and a $400 million HZL OFS. At the same time, with the $1.2 billion VRL bond issuance and ongoing deleveraging, we have reduced Holdco. debt to $4.8 billion, the lowest level in a decade. This positions us well to generate lasting value for our stakeholders, both now and in the years to come." 

Vedanta share price performance

The company's share price at around 3:18 pm traded with a positive bias- up by 0.16 per cent or Rs 0.75 per share at Rs 458.55 apiece.

(This is a developing story. Please stay tuned for more)