Vedanta to announce Q2 results today. Here’s what to expect

Mining major Vedanta will announce its quarterly results for the July-September 2024 period later today. The company is expected to report a profit as compared to a loss in the year-ago period.

Net profit for the quarter is seen in the range of Rs 2495-2600 crore, according to estimates from four brokerages. It had posted a loss of Rs 1783 crore in the second quarter of last year.

On a sequential basis, however, net profit is likely to decline up to 30% from Rs 3,606 crore reported in the preceding June quarter.

Analysts expect a sequential decline in EBITDA due to lower base metal prices, particularly aluminium and lead.

For instance, Kotak Equities is forecasting a 8.6% QoQ decrease in EBITDA (+35% YoY) due to lower commodity prices across major segments.

“Aluminum EBITDA may fall 17% QoQ (88% YoY) primarily led by lower LME prices, while the oil and gas division witnessed an EBITDA decline of 6.7% QoQ on lower volumes. Zinc India division to see 0.8% QoQ increase in EBITDA on the back of higher silver volumes,” the brokerage said.”Vedanta is expected to report an EBITDA decline of 5% QoQ. Higher alumina cost to increase aluminium CoP by 3% QoQ. Cost is under control in zinc. We expect Zinc international to grow at 15% QoQ due to higher volume,” Nuvama said.Management comments on the demerger status and its guidance on volumes and CoP across verticals will be crucial. Investors will also look for cues on the parent debt level and future dividend payout.

In the preceding June quarter, Vedanta reported 37% YoY growth in its consolidated net profit at Rs 3,606 crore, while revenue from operations during the same quarter rose 6% YoY to Rs 35,239 crore.

Vedanta is a diversified natural resources company, operating across sectors like oil and gas, zinc, lead, silver, aluminum, iron ore, copper, and power generation.

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