Vedanta jumps after Q3 earnings

Vedanta rose 5.25% to Rs 67.20 at 14:58 IST on BSE after the company announced Q3 December 2015 results during trading hours today, 28 January 2016.

Meanwhile, the BSE Sensex was up 85.31 points, or 0.35%, to 24,577.70.

On BSE, so far 27.32 lakh shares were traded in the counter, compared with an average volume of 16.79 lakh shares in the past one quarter. The stock hit a high of Rs 67.40 and a low of Rs 63.70 so far during the day. The stock hit a 52-week high of Rs 233.45 on 11 May 2015. The stock hit a 52-week low of Rs 62.15 on 21 January 2016. The stock had underperformed the market over the past one month till 27 January 2016, sliding 30.52% compared with 5.21% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 39.10% as against Sensex's 10.13% fall.

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

On a consolidated basis, Vedanta's attributable profit after tax (PAT) before exceptional items slumped 99% to 18 crore on 23% decline in net sales to Rs 14801 crore in Q3 December 2015 over Q3 December 2014.

Profit declined primarily due to lower commodity prices. Revenues for the quarter declined on account of the fall in oil and metal prices, partially offset by higher volumes at Zinc India and Power.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) fell 48% to Rs 3212 crore in Q3 December 2015 over Q3 December 2014. EBITDA fell primarily due to weak commodity prices.

EBITDA margin was reported at 26% in Q3 December 2015 compared with 43% in Q3 December 2014. The company was able to maintain an EBITDA margin in the weaker commodity price environment, driven by strong optimisation of operating costs.

The company's gross debt and net debt were at Rs 80952 crore and Rs 30267 crore respectively, at 31 December 2015, higher than Rs 79433 and 27105 crore at 30 September 2015. Gross debt and net debt were higher over the quarter primarily on account of project capex, unwinding of working capital as guided last quarter, and payments of dividends.

The company's cash and liquid investments were at Rs 50685 crore, which is invested in debt related mutual funds, bank deposits and bonds, and undrawn committed facilities of Rs 4800 crore as on 31 December 2015.

Meanwhile, the company said that it expects the merger of Cairn India with the company to be competed by Q1 June 2016.

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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