Vedanta Q2 Results: Net loss at ₹915 crore over tax rate changes, revenue up 6% to ₹38,546 crore .
Vedanta Q2 Results: Compared to ₹36,237 crore in the same period last year, the metals-to-mining conglomerate's operating revenue in the second quarter of the current fiscal year was ₹38,546 crore, indicating a growth of 6.37 per cent.
Vedanta's Q2 results were revealed on Saturday, November 4. The company reported a consolidated net loss of ₹915 crore for the July–September quarter of fiscal 2023–24 (Q2FY24) as opposed to a net profit of ₹2,690 crore for the same time the previous year. Due to an unusual one-time expense brought on by the new tax rate, the company experienced a net loss.
The conglomerate that deals with metals to mining saw a 6.37 percent increase in income from operations in the second quarter of the current fiscal year, to ₹38,546 crore, from ₹36,237 crore in the same period last year. This was Vedanta's greatest-ever second-quarter sales growth, the company stated.
In a regulatory filing to the stock exchanges, Vedanta stated, "Revenue was driven by higher sales volume, favourable movement in exchange rate, and favourable arbitration award, partially offset by lower commodity prices and strategic hedging gain in 2QFY23."
In terms of operations, the company led by Anil Agarwal's EBITDA, or earnings before interest, taxes, depreciation, and amortization, increased by 52.2% to ₹11,080 crore in the September quarter from ₹7,282 crore in the same period last year.
We are adamant about growing our portfolio and making steady progress in all growth projects that have been announced thus far, with a total capital expenditure of approximately $8.4 billion. Our revenue is expected to increase by $4 billion as a result, and EBITDA by $1 billion. Arun Misra, Executive Director of Vedanta, stated, "We remain well-positioned to withstand challenging macroeconomic environment with a rich diversified asset portfolio, strong balance sheet, and cost optimization levers."
Segment Performance
Its highly profitable zinc subsidiary, Hindustan Zinc Ltd., reported a 35% decline in quarterly net income and missed estimates. Agarwal is currently working to restructure his conglomerate and divide it into six publicly traded companies. This coincides with the loss at Vedanta.
Investors are closely monitoring the company's ability to raise capital to support debt repayment for parent company Vedanta Resources Ltd. The miner's restructuring efforts should be aided by the recent rehire of a former head of finance.
Vedanta's aluminium division suffered from low demand and falling prices, resulting in a more than 11% drop in revenue to ₹11,952 crore. Due to increased ore production at the Rampura Agucha Mine and better overall metal grades, the company produced the most mined metal in a first half ever (509 kt).
The oil and gas business saw a 15% increase in revenue to ₹8,229 crore from ₹3,869 crore, while the copper business reported a 15% growth in revenue to ₹4,606 crore.
In an effort to maximize value for its shareholders, Vedanta Limited authorized the formal demerger of its diversified business earlier this year into six "separate" listed companies. Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. are the six independent listed entities.
An international natural resources conglomerate with substantial operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminum, and power across India, South Africa, and Namibia is Vedanta Ltd., a subsidiary of Vedanta Resources Ltd.
Vedanta's shares closed 1.66 percent higher at ₹232.85 a share on the BSE on Friday.
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