Vedanta’s stock experienced minimal fluctuations following the release of its Q1 earnings report, which highlighted a notable 54% increase in the company’s profit after tax (PAT). At around 3:20 pm, shares of the Anil Agarwal-led firm were trading 0.11% higher at Rs 414.10 per share.
For the reported quarter, Vedanta’s PAT surged by 54% year-over-year to Rs 5,095 crore. This represents a substantial sequential increase of 124%. The company’s consolidated revenue for Q1FY25 grew by 6% year-over-year, reaching Rs 35,239 crore, compared to Rs 33,342 crore in the same period last year. Furthermore, Vedanta’s consolidated EBITDA also saw a robust 47% year-over-year growth, amounting to Rs 10,275 crore. The EBITDA margin for the quarter stood impressively at 34%, marking an increase of approximately 1000 basis points year-over-year.
Performance Metrics and Market Reaction on Vedanta’s Stock
Despite prevailing weak equity market sentiment, Vedanta’s stock demonstrated resilience. Shares traded at Rs 417.05, reflecting a 0.82% increase amidst broader market conditions. On the BSE, a total of 9.49 lakh shares were exchanged, generating a turnover of Rs 39.55 crore, with Vedanta’s market capitalization at Rs 1.62 lakh crore.
Vedanta’s net debt to EBITDA ratio improved significantly to an industry-leading 1.5 times, compared to 1.9 times in Q1FY24. This improvement underscores the company’s effective debt management strategies. Additionally, the return on capital employed (RoCE) was a strong 25%, showing a sequential growth of 181 basis points and a year-over-year increase of 763 basis points. The liquidity conditions of the company also demonstrated positive trends during the review period.
Arun Misra, Executive Director at Vedanta, attributed the company’s strong performance to its strategic focus on cost management. He stated, “Vedanta has had a robust start to the year, with an exceptional 47% growth in EBITDA and a 54% increase in PAT year-over-year. This remarkable performance is driven by improved margins and significant cost reductions across all operations. 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 management, which has led to a 20% reduction in overall costs compared to last year. We are confident that our growth projects are progressing as planned and remain committed to commissioning most of them in FY25.”
Overall, the performance of Vedanta’s stock reflects the company’s strong operational results and strategic advancements. Despite the broader market challenges, Vedanta’s financial health and market positioning remain robust, highlighting its resilience in a fluctuating economic environment.
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