Vedanta share price declined 3.68% in the last hour of trade on Thursday after the mining company announced earnings for the second quarter ended September 30, 2019. The company's consolidated revenue declined 3% to Rs 21,958 crore during July-September quarter as compared to Rs 22,705, recorded during the same period last year.
However, the company posted 60% growth in its Q2 consolidated net profit on a yearly basis to Rs 2,158 crore compared to Rs 1,343 crore reported in the corresponding quarter last year. The mining company saw a one-time deferred tax benefit of Rs 1,891 crore in the quarter.
Following the result announcement, shares of Vedanta declined 3.68% and touched an intraday low of Rs 142.8 on the BSE today. Vedanta shares have fallen 10% in a week, 2% in the last month and over 28% on a year-to-date basis. Vedanta shares currently trades lower than 5, 20, 50, 100 and 200-day moving averages.
Vedanta shares opened with a gain of 3.07% today to the day's high of Rs 152.8, after mining major emerged as the highest bidder for Jamkhani coal block in Odisha's Sundargarh district in the 10th tranche of coal block auction conducted by the Ministry of Coal, Government of India. Once operational, the coal block with an annual capacity of 2.6 million tonnes will provide fuel security, improve power availability, and further strengthen the company's aluminium operations and performance.
Market-depth data available on the BSE shows 53% sellers offering the stock against 47% buyers bidding on the current stock value. Volume-wise, shares amounting to 16 lakh and 260 lakh shares are currently changing on the counters of BSE and NSE, both above the 5, 10 and 30-day average volume traded.
Vedanta's EBITDA declined 13.8% yearly to Rs 4,423 crore during the Q2FY20 as against Rs 5,133 crore reported in the Q2 FY19, due to lower commodity prices, the company said. Its margin declined by 250 bps to this year's 20.1% versus 22.6% recorded last year.
"We are at an exciting transition that will see the company accelerate in the expansion of its reserves and resource base over coming quarters. As we look forward to the year, we have in place the building blocks to enhance our performance in the three key businesses," said Srinivasan Venkatakrishnan, Chief Executive Officer, Vedanta.
As of 1530 IST, shares of Vedanta were trading 2.6% lower at Rs 144.30 on the BSE.