Vedanta gains after restoration of transport permit for transport of iron ore from Karnataka

Vedanta rose 1.61% to Rs 164.40 at 9:20 IST on BSE after the company said that Directorate of Mines and Geology (DMG) of Goa has reissued to the company the permit for transportation of iron ore which was cancelled recently.

Meanwhile, the S&P BSE Sensex was up 219.06 points, or 0.79%, to 27,933.43.

On BSE, so far 85,000 shares were traded in the counter, compared with an average daily volume of 17.22 lakh shares in the past one quarter. The stock hit a high of Rs 164.85 and a low of Rs 163.05 so far during the day. The stock hit a 52-week high of Rs 175.20 on 25 July 2016. The stock hit a 52-week low of Rs 58.10 on 12 February 2016. The stock had outperformed the market over the past one month till 4 August 2016, rising 16.70% compared with 1.60% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 54.68% as against the Sensex's 10.41% rise.

The large-cap company has equity capital of Rs 296.47 crore. Face value per share is Re 1.

The permit for the transportation of iron ore from Karnataka to the company's pig iron plant in Goa was cancelled recently by Directorate of Mines and Geology (DMG) of Goa due to procedural lapses from Vedanta. The company clarified that the delay in restoration of the permit for transport of iron ore from Karnataka to the pig iron plant in Goa is not likely to have any significant adverse impact on the operation of the plant.

On a consolidated basis, net profit of Vedanta declined 27% to Rs 615.02 crore on 15.2% decline in net sales to Rs 14364.01 crore in Q1 June 2016 over Q1 June 2015.

Vedanta is a diversified natural resources company, whose business primarily involves producing oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power. The company has a presence across India, South Africa, Namibia, Australia, Ireland, Liberia and Sri Lanka. Vedanta, formerly Sesa Sterlite is the Indian subsidiary of Vedanta Resources Plc, a London-listed company.

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