Vedanta Q4 Result: Profit slides 27% due to falling metal prices, subdued oil & gas segment
Summary
The Anil Agarwal-led company’s net profit for the January-March quarter stood at ₹2,273 crore against ₹3,132 crore in the year-ago period. Shares of Vedanta Ltd ended 1.16% lower at ₹379 apiece on Thursday, April 25.
Mining major Vedanta Ltd posted a 27% drop in net profit for the fourth quarter of the fiscal year 2023-24 amid declining prices of metals like zinc, copper, and aluminium, and a subdued performance in the oil and gas segment.
The Anil Agarwal-led company’s net profit for the January-March quarter stood at ₹2,273 crore against ₹3,132 crore in the same quarter of the previous fiscal year. This is also a drop from the ₹2,868-crore profit reported in the third quarter.
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Revenue from operations fell 6.4% to ₹35,509 crore during the quarter under review, down from ₹37,930 crore in the year-ago period.
The global economic slowdown, exacerbated by geopolitical tensions and supply chain disruptions, has contributed to the fall in metal prices which has affected Vedanta’s profitability. Metals such as zinc, copper, and aluminium are significant revenue drivers for the company. Challenges in the oil and gas segment have also added to the company’s financial woes.
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) slipped 7.3% to ₹8,768 crore against ₹9,459 crore reported in the corresponding period in the previous year. The EBITDA margin stood at 24.7% against 24.9% in the preceding fiscal.
Shares of Vedanta ended 1.16% lower at ₹379 apiece on Thursday, April 25.
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