Vedanta Q1 results today: Profit to rise 200-240%; eyes on dividend payout guidance, demerger status

Vedanta Ltd is expected to report a 200-240 per cent surge in the June quarter profit on up to 15 per cent growth in sales.  The management update on the parent's debt situation is crucial. Vedanta's guidance on future dividend payout, comments on the demerger status and its update on volumes and CoP across verticals would be keenly followed.

Kotak Institutional Equities sees Vedanta's adjusted profit growing 242.50 per cent YoY to Rs 2,945 crore on 14.6 per cent YoY rise in sales at Rs 38,673 crore. Ebitda is seen at Rs 10,071 crore, up 56.9 per cent. 

"We forecast a 15 per cent QoQ increase in Ebitda due to higher commodity prices across major segments, particularly in zinc and aluminium.  We forecast aluminum Ebitda to increase QoQ by 46 per cent (up 140 per cent YoY) primarily led by higher LME  prices. Oil and gas division may witness Ebitda decline of 26 per cent QoQ on lower volumes and higher costs. Zinc India division may see 9.7 per cent QoQ increase in Ebitda on the back of higher zinc prices, 
partially offset by lower volumes," it said.

Antique Stock Broking expects Vedanta's consolidated revenue to rise 11 per cent YoY to Rs 37,470 crore, aided by improved realisation across commodities and rupee depreciation. 

"Ebitda at Rs 10,580 crore would sharply grow 64.9 per cent YoY on account of lower input commodity costs and topline growth. Adjusted profit is expected to materially grow QoQ to Rs 3,000 crore, up 249 per cent YoY," Antique Stock Broking said.

MOFSL expects Vedanta to report 202 per cent YoY surge in net profit at Rs 2,600 on 2.3 per cent YoY rise in sales at Rs 34,495 crore.

"Vedanta is expected to report an Ebitda uptick of 16 per cent QoQ, owing to a rise in zinc and aluminium prices (up 15 per cent QoQ) partially offset by lower volume across oil & gas, zinc and aluminium (down 1–4 per cent QoQ). We expect Zinc International’s Ebitda to improve from a low base (up 129 per cent QoQ) because of higher prices and volume. Iron ore Ebitda is expected to decline on the back of reduced volumes, as there was a temporary suspension of mine production in Karnataka during May," Nuvama said.