Vedanta share price

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.

 

Vedanta bullish or bearish

 Vedanta bullish or bearish

Vedanta shares fall 30% from 52-week high; time to buy, sell or hold

Shares of Vedanta ended 2.10% higher on Monday against the previous close of Rs 233.35 on BSE. The stock hit a 52-week low of Rs 232 on August 16, 2023.

Shares of Vedanta Ltd have fallen 30% from their 52-week high reached in the beginning of this year. Vedanta stock, which touched a 52-week high of Rs 340.75 on January 20 this year, ended at Rs 238.25 in the previous session on BSE. The stock of the mining and metal major ended 2.10% higher on Monday against the previous close of Rs 233.35 on BSE. The stock hit a 52-week low of Rs 232 on August 16, 2023.

During the session, the Vedanta stock rose 2.84% intraday to Rs 240 on BSE. A total of 11.41 lakh shares of the firm changed hands amounting to a turnover of Rs 27.15 crore on BSE. Market cap of the Vedanta rose to Rs

 88,562 crore.

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 29, signaling the stock is trading in the oversold territory. The stock has a one-year beta of 1.2, indicating high volatility during the period. Vedanta stock is trading lower than the 20 day, 50 day, 100 day and 200 day but higher than the 5 day and 10 day moving averages.

Vedanta shares have lost 25% this year and fallen 11.76% in a year.

On August 4, the metal stock hit a low of Rs 245.55 on BSE. The fall came after Twin Star Holdings, the majority shareholder among Vedanta’s promoters, offloaded 15.4 crore shares or 4.14% stake in the company on August 3. The transaction was done at a weighted average price of Rs 258, a 5% discount to the closing price on August 2. Promoters held majority stake in Vedanta at 68% at the end of June quarter and Twinstar Holdings owned 46.4% stake.

Here’s a look at what analysts said on the outlook of the Vedanta stock.

"The stock has corrected from its 52-week high of Rs 340 and is now trading near its 52-week low level, which is at Rs 232. Vedanta has strong resistance near the Rs 260 level, and a close above Rs 260 will see the stock moving towards the Rs 275–280 levels and downside below Rs 232. The next level of support lies around the Rs 220 zone."

"Vedanta is bearish but also oversold on the Daily charts with strong resistance at Rs 246. Investors should buy only if Daily close is above this resistance. Next support will be at Rs 228.65."

10 promoters held 68.11 per cent stake in the firm and 1565253 public shareholders owned 31.81 per cent or 118.24 crore shares at the end of June 2023 quarter. Of these, 15.28 lakh resident individuals held 37.35 crore shares or 10.05% stake with capital up to Rs 2 lakh. Only 24 resident individuals with 0.22% stake held capital above Rs 2 lakh at the end of June 2023 quarter.

Vedanta logged a 40% fall in net profit to Rs 3308 crore in the first quarter. Revenue fell 13% to Rs 33,242 crore in Q1 from Rs 38,251 crore during Q1FY23. The company declared an interim dividend of Rs 18.5 per share.