- 07 Aug 2024
- ICICI Securities
Vedanta Ltd reported healthy performance in Q1FY25
VEDL - 440 Change: -20.25 (-4.40 %)News: On the consolidated basis, total operating income at the company came in at ₹35,764 crore, up 6% YoY and flat QoQ. Reported EBITDA for the quarter came in at ₹9,945 crore with corresponding EBITDA margins at 27.8% (up ~878 bps YoY, 310 bps QoQ). Resultant PAT in Q1FY25 stood at ₹5,095 crore. Net Debt stands at ₹61,324 crores with Net Det to EBITDA currently improved to ~1.5x from ~1.9x (as on June’23). Cash and Cash equivalent position remain healthy at ₹16,692 crores.
Views: Healthy quarterly performance was driven by higher sales realisation and lower cost of production in the aluminium and zinc segments. EBITDA/tonne for aluminium division reached at $915, nearly double from $391 reported in Q1FY24. Aluminium COP was lower by 11% YoY to $1716/tonne owing to lower input commodity and higher operational efficiency. Similarly, Zinc COP was down by 7% YoY to $1,107/tonne, boosting overall EBITDA by 18% YoY to ₹3,903 crore. Over a longer investment horizon, driving comfort from inexpensive valuations, we have a positive stance on stock given that it is one of the leading global metal players with sizeable presence in aluminium and zinc segment, healthy capacity expansion plans and strong near-term guidance.
Impact: Positive