Zinc, aluminium drive up Vedanta's Q2 topline

Profitability was lower than expectations due to higher fuel costs

Vedanta's performance for the quarter ending June 2017 was driven by strong show by zinc and aluminium segments. Higher zinc-lead and silver volumes at Hindustan Zinc (mined metal production up 84 per cent year-on-year) and rising aluminium production (reaching run-rate of 1.4 million tonnes per annum or mtpa) led by capacity expansions drove up revenues. At Rs 18,203 crore, sales grew 27 per cent year-on-year meeting Bloomberg consensus estimates of Rs 18,237 crore.

On sequential basis, sales were likely to be soft due to some correction in base metal prices, sequential decline in volumes in Zinc India (as per mine plan)