Share price of Vedanta gained over 5% today despite the Anil Agarwal-led firm reporting consolidated net loss of Rs 12,521 crore for the quarter ended March 31, 2020. The company reported net profit of Rs 2,615 crore in the year-ago period.
The company logged exceptional loss of Rs 17,132 crore, primarily due to impairment of assets in oil and gas, copper and iron ore business. The impairment loss was related to writing down of book value of assets and did not involve any cash loss. It led to first quarterly loss in five years for the company.
Vedanta share price gained 5.41% intra day to Rs 111.05 compared to the previous close of Rs 105.35. The stock closed 0.28% lower at Rs 105.05. on BSE. The stock has fallen after 2 days of consecutive gain. It stands higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
Vedanta share has lost 36.08% in one year and 31.11% since the beginning of this year.
However, the stock has gained 35.81% in one month. On NSE, the stock hit its 52 week high of Rs 180 on June 27, 2019 and 52 week low of Rs 60.20 on March 20 , 2020. It hit 52 week high of Rs 179.95 on June 27, 2019 and 52 week low of Rs 60.30 on March 20 on BSE. Total 28.54 lakh shares of the firm changed hands amounting to turnover of Rs 30.46 crore.
Operational performance improved during the quarter as decline in input costs partially offset a fall in commodity prices.
"Strong operating performance for aluminium resulted in its consolidated EBITDA share rising to 25 per cent compared with 6 per cent in the year-ago quarter. Lower coal prices also came to the rescue of the power segment as it posted EBITDA growth of 27 per cent despite a 40 per cent fall in volumes. Performance of the ferrous segment was also strong with iron ore reporting its highest volumes (2.3 million tonnes) in eight quarters and the steel segment reporting an EBITDA per tonne of Rs 8,800, the highest since the Electrosteel acquisition in Q1FY19)," HSBC said.
Consolidated income during January-March quarter dropped to Rs 20,382 crore against Rs 25,096 crore in the year-ago period, the firm said.
"The COVID pandemic has hit the world and us in the last quarter of the year. We have taken a proactive approach to keep our assets and people safe while ensuring optimum operations during these difficult times," it said.
ICICI Securities said while the lockdown was expected to impact Rajasthan production, EBITDA per barrel came in much lower than expected - perhaps due to higher operating costs. Vedanta's write-down has Rs 30 per share of impact on the book value (net of taxes) and impacts valuation by Rs 8 per share, it said.
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