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Vedanta Limited’s Quarterly Result and Earnings Report for Q4(Mar 2024) : Key Metrics and Growth Analysis

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Highlights

  • Sales over the Year and quarter: The company’s sales declined by -6.38% over the yearDecrease in net sales/revenue by -0.09%
  • Income over the Year and quarter: There has been decline in other income over the past year which is -16.88% Marginal decrease of -24.78% in other income during this quarter
  • Profit over the Year and quarter: Challenges in sustaining profitability for Vedanta Limited. Profit dropped by -27.36% Year to YearVedanta Limited’s profitability dropped by -20.68% Quarter to Quarter.
  • EPS over the Year and quarter: EPS declined by -27.22% Year to Year.EPS decreased by -31.92%. Analysis needed for shareholder value.

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.

Metrics Previous Year Previous Quarter Current Quarter Quarter to Quarter Difference Year to Year Difference
Sales Rs. 37930 Cr Rs. 35541 Cr Rs. 35509 Cr -0.09% -6.38%
Expenses Rs. 28471 Cr Rs. 27010 Cr Rs. 26741 Cr -1% -6.08%
Operating Profit Rs. 9459 Cr Rs. 8531 Cr Rs. 8768 Cr + 2.78% -7.31%
OPM % 24.94 % 24 % 24.69 % + 0.69% -0.25%
Other Income Rs. 705 Cr Rs. 779 Cr Rs. 586 Cr -24.78% -16.88%
Interest Rs. 1805 Cr Rs. 2417 Cr Rs. 2415 Cr -0.08% + 33.8%
Depreciation Rs. 2765 Cr Rs. 2788 Cr Rs. 2743 Cr -1.61% -0.8%
Profit before tax Rs. 5594 Cr Rs. 4105 Cr Rs. 4196 Cr + 2.22% -24.99%
Tax % 26.44 % 30.13 % 43.08 % + 12.95% + 16.64%
Net Profit Rs. 3132 Cr Rs. 2868 Cr Rs. 2275 Cr -20.68% -27.36%
EPS in Rs Rs. 5.07 Rs. 5.42 Rs. 3.69 -31.92% -27.22%


Today, we’re looking at Vedanta Limited’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -6.38%. However, it did see a marginal slip of -0.09% from the previous quarter.Expenses decreased slightly by -1% quarter-on-quarter, aligning with the annual decline of -6.08%. Operating profit, while down -7.31% compared to last year,faced a quarter-on-quarter increase of 2.78%, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -0.25%, but an expansion of 0.69% sequentially. Other income fell by -24.78% compared to the last quarter, despite an annual decline of -16.88%. Interest expenses dropped significantly by -0.08% from the previous quarter, yet the year-over-year increase remains at a moderate 33.8%. Depreciation costs fell by -1.61% quarter-on-quarter, yet on an annual scale, they experienced a reduction of -0.8%. Profit before tax declined annually by -24.99%but saw an increase from the preceding quarter by 2.22%.
Tax expenses as a percentage of profits increased slightly by 16.64% compared to last year, with a more notable quarter-on-quarter increase of 12.95%. Net profit fell by -27.36% year-on-yearbut witnessed a -20.68% contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -27.22% but a quarterly fall of -31.92%. In summary, Vedanta Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

Metrics Previous Year Previous Quarter Current Quarter Quarter to Quarter Difference Year to Year Difference
Sales Rs. 37930 Cr Rs. 35541 Cr Rs. 35509 Cr -0.09% -6.38%
Expenses Rs. 28471 Cr Rs. 27010 Cr Rs. 26741 Cr -1% -6.08%
Operating Profit Rs. 9459 Cr Rs. 8531 Cr Rs. 8768 Cr + 2.78% -7.31%
Net Profit Rs. 3132 Cr Rs. 2868 Cr Rs. 2275 Cr -20.68% -27.36%
EPS in Rs Rs. 5.07 Rs. 5.42 Rs. 3.69 -31.92% -27.22%


In reviewing Vedanta Limited’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -6.38% year-on-year, although there was a slight dip of -0.09% from the previous quarter.Expenses decreased by -6.08% compared to the previous year, with a decrease of -1% quarter-on-quarter. Operating Profit dropped by -7.31% annually, and saw a 2.78% increase from the last quarter.
Net Profit showed yearly decrease of -27.36%, and experienced a -20.68% decrease from the previous quarter.Earnings Per Share (EPS) fell by -27.22% annually, however dipped by -31.92% 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.

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