Vedanta Ltd. share price target

Vedantas (VEDL) EBITDA of INR44b (-15% QoQ) was below our estimate of INR47.2b (6% miss) due to higher cost of production (CoP) in the aluminum business and lower margins in the steel business. However, business reported a loss of INR1.1b at the EBITDA level (v/s profit of INR1.8b in 1Q) due to lower LME and higher CoP (up USD88 QoQ led by higher power cost due to lower linkage coal availability). EBITDA increased 62% QoQ to INR2.1b, led by lower CoP and higher sales, partly offset by lower realizations. had reported an EBITDA of ~INR21b. For 1HFY20, EBITDA/PBT was down 15%/36% YoY at INR96/INR36b. We cut our FY20/21 EBITDA estimate by 10/9% on the back of higher costs for the aluminum business. While the company expects its aluminum CoP to reduce through higher captive bauxite and coal linkages, coal availability issues may impact costs over the near term. Aluminum reported CoP was higher due to higher power cost.

During the quarter, blended cost of production (CoP) of the aluminium segment fell QoQ from US$1810/tonne in Q4FY19 to US$1764/tonne in Q1FY20. Despite the fall in CoP, on the back of the muted trend in aluminium prices, the blended EBITDA/tonne of the aluminium business declined from US$131/tonne in Q4FY19 to US$64/tonne in Q1FY20. Currently, LME aluminium prices are hovering at ~US$1777/tonne (Q1FY20 average...

EBITDA for Q4 FY2019 was at Rs 6,330 crore, 6% higher q-o-q, primarily due to improved cost of production at Aluminium, higher sales at Iron Ore Karnataka, ESL and Zinc International, partially offset by lower commodity prices, rupee appreciation, lower volumes at Zinc India...

Declining aluminum prices likely to impact future performance For Q4FY19, the aluminium segment's blended cost of production (CoP) declined by US$249/tonne QoQ, from US$2025/tonne in Q3FY19 to US$1776/tonne in Q4FY19. The decline in aluminium CoP was primarily driven by reduction in power costs as availability of linkage and e-auction coal improved. During the quarter, the company was also able to secure ~72% of its coal requirement through the linkage and captive blocks, which aided reduction in cost of production. However, recent trend of reduction in...

7 May 2019 Lower cost of production (CoP) in aluminum and zinc international was the key driver of its growth and better-than-estimated performance. Other led by a mark-to-market gain on the structured investment in Anglo Reported aluminum CoP was down USD249/t QoQ to USD1,776/t due to lower alumina and coal cost. Reported EBITDA/t increased by USD74 QoQ to USD131. Zinc-int CoP was down USD269/t QoQ to USD2,540/t owing to higher volumes (+42% QoQ). Iron ore EBITDA doubled QoQ to INR2.4b, led by higher volumes in Karnataka. Electrosteels EBITDA increased 35% QoQ to INR3.4b, driven by a 35% QoQ increase in sales volume. EBITDA/t was flat QoQ at INR8,597/t. VEDL has paid ~USD270m for the structured investment in Anglo-America PLC in a related-party transaction with its holding company. The total investment is ~USD500m; the balance has to be paid in the next 4-5 quarters. It has recognized a mark-to-market gain of ~USD150m on the investment.

Vedanta revenue was lower 3% on a y-o-y basis to Rs 23669 crore in Q3FY19 mainly on account was higher 4% sequentially primarily on account of higher volume at Zinc India & Aluminium business and currency depreciation though was partially offset by lower commodity prices....

Vedanta's Q3FY19 performance was a mixed bag wherein the topline came in above our estimates while EBITDA came in lower than our estimates. On account of higher-than-expected other income, PAT came in higher than our estimate The consolidated topline came in at | 23669 crore (up 4.2% QoQ, down 2.8% YoY, our estimate: | 20917.7 crore) EBITDA for the quarter was at | 5645 crore (down 16.5% YoY, up 8.4% QoQ) lower than our estimate of | 5789.1 crore. The EBITDA margin...

Finance cost during the quarter was Rs 1571 crore, higher by Rs 144 crore y-o-y mainly due to increase in borrowings on account of acquisition of Electrosteel and increase in interest rates in line with the market rates. Depreciation was higher by Rs 424 crore y-o-y on account of higher charge at Zinc India due to higher ore production, acquisition of new businesses and higher charge at Oil & Gas due to reversal of impairment charge in the previous period Tax expense (before Exceptional items and DDT) was at Rs 606 crore during the quarter,...

ICICI Securities Ltd | Retail Equity Research Vedanta's Q2FY19 performance was mixed bag; wherein the topline was above our estimates while EBITDA was lower than our estimates. Consolidated topline was at | 22705 crore (up 5.2% YoY, down 2.2% QoQ, our estimate: | 18805.1 crore) EBITDA for the quarter was at | 5208 crore (down 8.1% YoY, 17.1% QoQ) lower than our estimate of | 5695.9 crore. The EBITDA margin came in at 22.9% (Q2FY18: 26.3 % and Q1FY19: 28.4%)...

Mined metal at 212kt, underground production up 7% q-o-q,- Gamsberg commercial production to commence in Sept 2018 - Iron Ore: Our mining allocation at Karnataka doubled to 4.5mt, - Aluminium: Record quarterly Aluminium production of 482kt and commencement of Odisha bauxite delivery - TSPL: Plant availability of 91%,...