Vedanta shares in focus on Anil Agarwal's comments on sale of steel assets, Q2 production data

Shares of Vedanta Ltd are in focus in Wednesday's trade amid the timeline on sale of steel assets shared by Chairman Anil Agarwal in a TV interview, and production data released by the company post market hours of Tuesday.  Agarwal, whose India listed company  recently announced demerger of business into six separate entities, told CNBC-TV18 that Vedanta intends to sell its steel asset by March 2024, which would help the cut debt. Agarwal said all finances are lined up for the repayment of dues, adding that maturities are lined up as early as January 2024.

In a production update, Vedanta said total saleable steel production increased 17 per cent YoY to 378 kt in the September quarter on account of improved operational efficiency and higher production capacity post debottlenecking carried out in FY23. Production was up 17 per cent sequentially, thanks to planned annual shut down in the June quarter.

For the first half of financial year, steel segment logged the highest ever total saleable production at 702 kt, up 18 per cen YoY due to operational efficiency and higher production capacity owing to debottlenecking carried out in FY23. Steel business contributes 4 per cent to the company’s full-year operating profit and include the domestic iron ore business, Liberia assets and ESL Steel Ltd. Agarwal said that both refinancing and repayment options are open for now when it comes to pending dues.

Meanwhile, Vedanta said alumina production at Lanjigarh refinery increased 2 per cent YoY and 17 per cent QoQ. The cast metal aluminium production at smelters increased 2 per cent YoY and 3 per cent QoQ to 594 kt. In the case of Zinc India, mined metal production was marginally down at 252 kt YoY. It decreased 2 per cent QoQ largely due to lower ore production at Rampura Agucha and Kayad mines partly offset by better overall metal grades. Zinc International's production came at 66 kt, down 10 per cent YoY and 3 per cent QoQ, largely due to lower tonnes treated.

In the oil & gas segment, average gross operated production stood at 134,092 boepd. "Rajasthan block's average gross production was stable QoQ at 112,215 boepd. Gross production from Development Area-1 (DA-1), Development Area-2 (DA-2) and Development Area-3 (DA-3) averaged 97,594 boepd, 14,483 boepd and 138 boepd; respectively. The natural decline in MBA fields has been partially offset by infill wells brought online in Aishwariya Barmer Hill, Aishwariya and RDG fields," Vedanta said.

In the case of copper segment, Silvassa refinery and wire rod plant continued to operate, catering to the domestic market. Production at Silvassa stood at 36kt, down 14 per cent YoY due to shortage of blister in the international market, partially offset by improved operational efficiencies, Vedanta said.

Also read: Adani Enterprises stock in news as IHC buys additional shares

Also read: Stocks in news: Titagarh Rail, D-Mart, Raymond, Adani Enterprises and more