Vedanta Q1 Results Review - Revenue Inline; Marginal Miss On Ebitda: Motilal Oswal
Vedanta’s net debt stood at ~Rs 592 billion and net debt/Ebitda stood at 1.88 times in Q1 FY24.
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Motilal Oswal Report
Vedanta Ltd.’s consolidated net sales stood at Rs 337 billion (down 12% YoY), in line with our estimate of Rs 334 billion. Revenue was adversely impacted by the reduction in commodity prices and lower volumes, which was partially offset by higher premiums and favorable exchange rate movement.
Vedanta’s consolidated Ebitda stood at Rs 64 billion (down 37% YoY), 6% miss to our estimate of Rs 68 billion. The aluminum vertical was down 19% YoY to Rs 18 billion; Hindustan Zinc Ltd. was down 35% QoQ to Rs 33 billion and the oil and gas vertical was down 45% YoY to Rs 11 billion. All the verticals (except copper) were profitable during the quarter.
Vedanta’s adjusted profit after tax stood at Rs 9 billion (down 81% YoY) against our estimate of Rs 16 billion. The miss was led by higher finance cost, lower other income, and higher normalised effective tax rate.
London Metal Exchange prices across the non-ferrous portfolio were down QoQ. Zinc/Lead/ Copper/Aluminum prices were down 19%/1%/5%/6% on a QoQ basis, whereas silver was up 7% QoQ.
Vedanta’s net debt stood at ~Rs 592 billion and net debt/Ebitda stood at 1.88 times in Q1 FY24 as against 1.28 times as on March 2023.
Vedanta paid out Rs 18.5 as the first interim dividend for FY24.
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