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Vedanta Aluminium reports 41% revenue growth to Rs 22,066 crore in September quarter

By Economic Times Markets · Published by Everything Blog

In short

The manufacturer achieved record production levels alongside an 83% surge in operating profit to ₹10,192 crore, while quarterly net profit more than doubled to ₹6,187 crore. London Metal Exchange benchmark prices rose 23% year-on-year to average $3,226 per tonne. Operational cost reductions to $1,722 per tonne further supported these margins. Following the release of the quarterly performance metrics, shares ended the trading session 1.3% higher on the BSE.

Key points

Production costs dropped to $1,722 per tonne, benefiting directly from operational enhanc…: Production costs dropped to $1,722 per tonne, benefiting directly from operational enhancements.
London Metal Exchange prices rose 23% year-on-year to provide substantial top-line moment…: London Metal Exchange prices rose 23% year-on-year to provide substantial top-line momentum.
Management aims to lower overall production costs to at least $1,600 per tonne using capt…: Management aims to lower overall production costs to at least $1,600 per tonne using captive bauxite.

Sources checked by our analysis pipeline: 1

The country's largest producer of aluminium saw a 41% year-on-year jump in consolidated revenue to ₹22,066 crore in the September quarter, while earnings before interest, tax, depreciation and amortisation (Ebitda) surged 83% to ₹10,192 crore. Net profit for the quarter more than doubled year-on-year to ₹6,187 crore.

"If you compare our Ebitda to the previous year, about 26% of the growth in Ebitda has come from operational factors," chief financial officer Anup Agarwal told ET in an interview. "Sequentially, even when LME prices were 10% lower, we have delivered 2% more (of Ebitda) on the operational front," he said.

Read more: Bandhan Bank Q2 profit jumps 5.6 times as asset quality improves

After the onset of the crisis in West Asia and consequent supply disruptions, aluminium prices surged to over $3,700 per tonne. Prices have since retreated and are expected to fall further after a key smelter in Abu Dhabi resumed operations. The company's output of both aluminium and alumina, meanwhile, is expected to increase as it ramps up its recently expanded capacities.

In the September quarter, record production of…

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In short

Key Points

Production costs dropped to $1,722 per tonne, benefiting directly from operational enhanc…: Production costs dropped to $1,722 per tonne, benefiting directly from operational enhancements.
London Metal Exchange prices rose 23% year-on-year to provide substantial top-line moment…: London Metal Exchange prices rose 23% year-on-year to provide substantial top-line momentum.
Management aims to lower overall production costs to at least $1,600 per tonne using capt…: Management aims to lower overall production costs to at least $1,600 per tonne using captive bauxite.

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AI Analysis

Tone

Positive

In short

Key Points

Production costs dropped to $1,722 per tonne, benefiting directly from operational enhanc…: Production costs dropped to $1,722 per tonne, benefiting directly from operational enhancements.
London Metal Exchange prices rose 23% year-on-year to provide substantial top-line moment…: London Metal Exchange prices rose 23% year-on-year to provide substantial top-line momentum.
Management aims to lower overall production costs to at least $1,600 per tonne using capt…: Management aims to lower overall production costs to at least $1,600 per tonne using captive bauxite.

Topics

Business

Was this summary useful?

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Vedanta Aluminium reports 41% revenue growth to Rs 22,066 crore in September quarter

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