Vedanta announces Q2 results: Profit Rises by 712.35% YoY

The comprehensive analytics outlining the performance and outlook of Vedanta Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Vedanta Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a significant year-over-year sales decline of -3.37 %. However, it did see a marginal increase of 5.23 % from the previous quarter. Expenses ticked up slightly by 7.7 % quarter-on-quarter, aligning with the annual rise of 1.24 %. Operating profit, while down -14.38 % compared to last year, faced a quarter-on-quarter dip of -1.18 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -3.36 %, but a shrinkage of -1.7 % sequentially. Other income rose by 239.19 % compared to the last quarter, despite an annual growth of 70.05 %. Interest expenses surged remarkably by 20.03 % from the previous quarter, yet the year-over-year increase remains at a moderate 5.71 %. Depreciation costs fell by -1.28 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 2.04 %. Profit before tax declined annually by -6.65 % but saw an increase from the preceding quarter by 28.81 %.
Tax expenses as a percentage of profits decreased slightly by -84.59 % compared to last year, with a more notable quarter-on-quarter increase of 12.58 %. Net profit rose by 712.35 % year-on-year but experienced a 9.97 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 332.92 % but a quarterly rise of 15.98 %. In summary, Vedanta Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Vedanta Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -3.37 % year-on-year, however, there was a minor increase of 5.23 % from the previous quarter. Expenses rose by 1.24 % compared to the previous year, with a 7.7 % increase quarter-on-quarter. Operating Profit dropped by -14.38 % annually, and saw a -1.18 % decrease from the last quarter.
Net Profit showed yearly increase of 712.35 %, and experienced a 9.97 % increase from the previous quarter. Earnings Per Share (EPS) rose by 332.92 % annually, however rose by 15.98 % compared to the last quarter. In essence, while Vedanta Limited faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.