This is the first quarter of Vedanta Aluminium reporting results as a standalone entity after demerging from the parent Vedanta Ltd.
Vedanta Aluminium’s net profit for the quarter increased by 33.8% from the March quarter to ₹5,629 crore from ₹4,207 crore earlier.
Revenue for the quarter increased to ₹21,393 crore, a growth of 12% from the previous quarter.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹10,299 crore, an increase of 23.3% from the previous quarter figure’s ₹8,352 crore, while EBITDA margin expanded by over 4 percentage points to 48.14% from 43.68% in March.
Vedanta Aluminium reported its highest-ever quarterly Aluminium production during the June quarter. Production increased by 5% from last year and 3% sequentially.
Production of Alumina increased by 41% from last year but was down 6% sequentially due to unplanned shutdowns that the unit had to undertake.
The production of Value-Added Products increased by 14% from last year and 4% sequentially.CLSA recently initiated coverage on Vedanta Aluminium with an “outperform” rating and a price target of ₹540 citing strong near-term volume growth visibility.
The brokerage anticipates cost savings of $150 to $200 per tonne over the next three years, adding that robust free cash flow generation is expected to support deleveraging and healthy dividend payouts.
It went on to further state that every $100 per tonne change in the LME Aluminium price impacts the company’s valuation by close to 7%.
Shares of Vedanta Aluminium Metal are trading 1.3% higher after the results announcement at ₹444.1.
