Vedanta Q1 ReviewResults Miss Estimates; Focus Back To Growth Capex: Systematix

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Systematix Research Report

Vedanta Ltd.’s Q1 FY22 consolidated Ebitda at Rs 98.7 billion (up 147% y-o-y, 9% q-o-q) was 7% below our estimates.

Strong operational performance by the aluminium and zinc international operations was offset by lower-than-expected margins at oil and gas, steel and zinc India operations.

After several years of limited capex, Vedanta has announced plans to-

  1. increase its aluminium capacity from 2.1 million tonne to 2.8 million tonne,

  2. raise steelmaking capacity from 1.5 million tonne to 3 million tonne and

  3. increase oil output with a capex of $350 million.

Cash generation should remain elevated despite a step up in capex over the near-term, resulting in a likely surge in near-term dividend payout

Click on the attachment to read the full report:

Systematix Vedanta Q1FY22 Result Update.pdf


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