Vedanta Q3 results today: Profit to fall over 30%; all eyes on dividend payout guidance
Vedanta Q3 results: Phillip Capital expects Vedanta to report a 30 per cent YoY drop in net profit at Rs 1,097.40 crore compared with Rs 1,561 crore in the same quarter last year.
- Jan 25, 2024,
- Updated Jan 25, 2024 8:11 AM IST
Vedanta Ltd is expecting to report 30-38 per cent year-on-year drop in net profit for the December quarter on muted sales. All eyes would be on the management guidance on future dividend payout and also updates on the debt levels of parent Vedanta Resources. Besides, analysts said investors would also weekly follow any guidance on the demerger timeline of different verticals.
Phillip Capital expects Vedanta to report a 30 per cent YoY drop in net profit at Rs 1,097.40 crore compared with Rs 1,561 crore in the same quarter last year. Vedanta had posted a loss of Rs 2,688 crore in the September quarter. Revenue is seen rising 1 per cent to Rs 34,403 crore compared with Rs 34,102 crore in the corresponding quarter last year. Ebitda is seen climbing 8 per cent to Rs 7609.70 crore, with margin seen expanding to 22.1 per cent against 20.7 per cent YoY.
"Aluminium, Steel, Iron ore and Zinc International segments may report decline in volumes sequentially. Copper volumes may rise QoQ. LME Aluminium and Zinc prices increased 2 per cent and 3 per cent sequentially; whereas LME Lead was down 1 per cent. Crude was down 3 per cent QoQ," the brokearge said.
Kotak Institutional Equities sees profit at Rs 749.90 crore and sales at Rs 32,863 crore. It forecast an 8 per cent YoY decline in Ebitda due to weaker sequential commodity prices across segments, particularly in zinc and aluminium.
"We forecast aluminium Ebitda to decline sequentially by 2 per cent (p 133 per cent YoY) mainly led by lower realizations, partially offset by lower costs, (2) oil and gas division to witness flat Ebitda QoQ (3) Zinc India division to see 9 per cent QoQ decrease in Ebitda on the back of lower zinc prices and weak volumes
For the December quarter, Vedanta earlier this month said its Alumina production at Lanjigarh refinery rose 6 per cent YoY to 470kt. The cast metal aluminium production at its smelters was up 6 per cent YoY. In the case of Zinc India, Vedanta suggested mined metal production of 271kt, up 7 per cent YoY, on account of improved mined metal grades and higher ore production at Rampura Agucha and Sindesar Khurd Mines.
The refined metal production stood at 259kt, up 1 per cent YoY. Sequentially, it was up by 7 per cent, resulting from better plant availability. Refined lead production came in at 56kt, up 21 per cent YoY. Saleable silver production for the quarter stood at 197 tonnes, up 22 per cent YoY, in line with lead metal production. It was up 9 per cent QoQ in line with lead metal production and higher WIP accumulation in base period.
Motilal Oswal expects profit for Vedanta to fall 37.6 per cent YoY to Rs 974.40 crore on 1.2 per cent drop in sales at Rs 33,676 crore. It believes the management guidance on future dividend payout is critical. Besides, zthe demerger timeline of different verticals and guidance on volumes and CoP across verticals would be key monitorables.
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Vedanta Ltd is expecting to report 30-38 per cent year-on-year drop in net profit for the December quarter on muted sales. All eyes would be on the management guidance on future dividend payout and also updates on the debt levels of parent Vedanta Resources. Besides, analysts said investors would also weekly follow any guidance on the demerger timeline of different verticals.
Phillip Capital expects Vedanta to report a 30 per cent YoY drop in net profit at Rs 1,097.40 crore compared with Rs 1,561 crore in the same quarter last year. Vedanta had posted a loss of Rs 2,688 crore in the September quarter. Revenue is seen rising 1 per cent to Rs 34,403 crore compared with Rs 34,102 crore in the corresponding quarter last year. Ebitda is seen climbing 8 per cent to Rs 7609.70 crore, with margin seen expanding to 22.1 per cent against 20.7 per cent YoY.
"Aluminium, Steel, Iron ore and Zinc International segments may report decline in volumes sequentially. Copper volumes may rise QoQ. LME Aluminium and Zinc prices increased 2 per cent and 3 per cent sequentially; whereas LME Lead was down 1 per cent. Crude was down 3 per cent QoQ," the brokearge said.
Kotak Institutional Equities sees profit at Rs 749.90 crore and sales at Rs 32,863 crore. It forecast an 8 per cent YoY decline in Ebitda due to weaker sequential commodity prices across segments, particularly in zinc and aluminium.
"We forecast aluminium Ebitda to decline sequentially by 2 per cent (p 133 per cent YoY) mainly led by lower realizations, partially offset by lower costs, (2) oil and gas division to witness flat Ebitda QoQ (3) Zinc India division to see 9 per cent QoQ decrease in Ebitda on the back of lower zinc prices and weak volumes
For the December quarter, Vedanta earlier this month said its Alumina production at Lanjigarh refinery rose 6 per cent YoY to 470kt. The cast metal aluminium production at its smelters was up 6 per cent YoY. In the case of Zinc India, Vedanta suggested mined metal production of 271kt, up 7 per cent YoY, on account of improved mined metal grades and higher ore production at Rampura Agucha and Sindesar Khurd Mines.
The refined metal production stood at 259kt, up 1 per cent YoY. Sequentially, it was up by 7 per cent, resulting from better plant availability. Refined lead production came in at 56kt, up 21 per cent YoY. Saleable silver production for the quarter stood at 197 tonnes, up 22 per cent YoY, in line with lead metal production. It was up 9 per cent QoQ in line with lead metal production and higher WIP accumulation in base period.
Motilal Oswal expects profit for Vedanta to fall 37.6 per cent YoY to Rs 974.40 crore on 1.2 per cent drop in sales at Rs 33,676 crore. It believes the management guidance on future dividend payout is critical. Besides, zthe demerger timeline of different verticals and guidance on volumes and CoP across verticals would be key monitorables.
Also read: Stock recommendations by analyst for January 25, 2024: NMDC Steel, CEAT and PowerGrid
Also read: JSW Steel, Vedanta, Punjab National Bank: Trading strategies for these buzzing stocks