Vedanta shares: Vedanta saw a substantial increase in its share price, rising over 5% during Friday’s morning trading session. This surge was attributed to the release of its Q4 results on Thursday, with analysts pointing out that Vedanta’s earnings for the March quarter surpassed predictions, fueling the upward momentum in share prices.
In its Q4FY24 earnings report, Vedanta disclosed a consolidated net profit of Rs 2,273 crore, showing a sequential decrease of 21% and a year-on-year decline of 27% compared to the Rs 3,132 crore reported in the corresponding quarter of the preceding year.
Nevertheless, these numbers were influenced by extraordinary items, such as the exclusion of custom smelting in its copper business and impairment charges incurred for the closed Sterlite Copper plant during the January-March quarter. -Vedanta shares
Despite encountering these obstacles, Vedanta witnessed a sequential 3% increase in its Q4FY24 EBITDA, reaching Rs 8,969 crore, primarily propelled by enhanced volumes and cost-saving measures implemented across its operations. However, this upsurge was somewhat mitigated by declining base metal prices on the London Metal Exchange (LME) and fluctuations in exchange rates.
Despite the impact of reduced LME prices and fluctuations in exchange rates on its financial performance, Vedanta’s Q4FY24 revenue remained stable sequentially at Rs 34,937 crore, albeit experiencing a 6% year-on-year decrease.
Also Read: Yes Bank Q4 results
Analysts computed Vedanta’s EBITDA at Rs 8,768 crore, while the adjusted net profit stood at Rs 1,549 crore. Analysts from Antique Stock Broking highlighted that these figures exceeded their projections by 3.4% and were 6.3% higher than the consensus.
Vedanta brokerages
On Vedanta, Motilal Oswal
As per a recent report from Motilal Oswal, Vedanta’s performance in the fourth quarter of FY24 met expectations across its various segments. The choice to prolong the maturity of bonds at HoldCo. by three years is viewed as furnishing the company with sufficient liquidity reassurance shortly.
Additionally, the company’s Capex plans are advancing as scheduled, anticipated to yield additional cost efficiencies. Consequently, Motilal Oswal has slightly raised its target price for Vedanta to Rs 360, while upholding a ‘neutral’ rating.
