Vedanta's shares surge after net profit grows 54% YoY in Q1FY25 results

The stock price of Vedanta surged up to 2 per cent to Rs 422 per share on the BSE in Tuesday’s intraday deals. This came after the company’s net profits more than doubled sequentially in the first quarter of financial year 2024-24 (Q1FY25).

On Tuesday, Vedanta, a leading mining company, registered a 54 per cent year-on-year (Y-o-Y)increase in consolidated net profit, reaching Rs 5,095 crore for the first quarter. This is up from Rs 3,308 crore reported in the same period last year. Sequentially the profits grew 124 per cent. 

Revenue from operations also saw a 6 per cent rise, climbing to Rs 35,239 crore compared to Rs 33,342 crore in the previous year’s quarter. 

 

The company's earnings before interest, tax, depreciation and amortisation (Ebitda) surged by 47 per cent year-on-year to Rs 10,275 crore, with margins standing at 34 per cent, up 1000 basis points, the company said in an exchange filing. 

The Ebitda growth was led by structural cost saving initiatives across businesses, easing of input commodity inflation, and favourable output commodity prices, the company said. 

“Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve. These achievements are a direct result of our strategic focus on cost, as reflected in a 20 per cent year-over-year reduction in overall Cost. Our growth projects are well on track, and we remain committed to commission the majority of these projects in FY25,” said Arun Misra, Executive Director Vedanta. 

Vedanta Limited, a subsidiary of Vedanta Resources Limited, is engaged in critical minerals, energy, and technology. The company operates across multiple countries, including India, South Africa, Korea, Taiwan, and Japan among others. 

Vedanta's operations span various sectors, such as Oil and Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminium, Power and Glass Substrate. Additionally, the company is expanding into electronics and display glass manufacturing.

The market capitalisation of vedanta is Rs 1.62 trillion, according to Bombay Stock Exchange (BSE). It falls under the BSE SmallCap category. The company’s stock is trading at a price to earnings multiple of 24.42 times with an earning per share of Rs 16.94.  

At 02:48 PM; the share price of the company was up by 0.27 per cent at Rs 414.75 per share on the BSE. By comparison, the BSE Sensex dropped by 0.20 per cent to 78,605 levels.