Vedanta Reports Mixed Performance in Q3 FY25; Growth in Aluminium and Steel, Decline in Oil Output

Vedanta, a leading natural resources company, has reported a 3% year-on-year (YoY) increase in aluminium production, reaching 614 kilotonnes for the third quarter (October-December 2024), according to provisional business updates released on Friday. The company showcased strong performance in metal production while facing challenges in its oil and gas segment.

Aluminium and Zinc Drive Metal Output Growth

In Q3 FY25, aluminium production rose by 3% YoY to 614 kilotonnes. The company’s mined metal production grew 3% sequentially to 265 kilotonnes, supported by higher grades and increased production at the Agucha and Zawar mines.

Refined zinc production improved 3% sequentially to 204 kilotonnes, marking a new peak for nine-month mined and refined metal production. Similarly, refined lead production increased by 4%, driven by robust plant performance and enhanced availability.

Record Nine-Month Production for Metals

Vedanta achieved record-high nine-month mined metal production, attributing the growth to improved grades and enhanced mill recovery. Refined metal output also hit record levels, showcasing consistent improvement across its operations.

Oil and Gas Production Declines

Contrasting the positive metal output, Vedanta’s oil and gas production dropped 19% YoY to 9.1 million barrels of oil equivalent per day. This decline highlights ongoing challenges in the segment.

Pig Iron and Steel See Sequential Recovery

Pig iron production climbed 7% YoY to 217 kilotonnes, reflecting the relining of a smaller furnace. Sequentially, total pig iron output rose 14%, rebounding from the prior quarter’s planned blast furnace shutdown and disruptions caused by heavy monsoons.

Saleable steel production grew 11% sequentially to 329 kilotonnes, following a recovery from maintenance shutdowns in the previous quarter. Saleable ore production also improved 10% YoY, reaching 1.5 million tonnes.

Copper Production Records Modest Growth

Copper production recorded a 9% sequential increase, reaching 45 kilotonnes, highlighting a steady recovery in this segment.

Stock Performance 

On January 06, 2025, Vedanta share price traded 1.35% lower at ₹451.70 at 10:26 AM (IST). Vedanta share price reached a 52-week high of ₹527 on December 16, 2024, and a 52-week low of ₹249.75 on March 13, 2024. As per BSE, the total traded volume for the stock stood at 0.70 lakh shares with a turnover of ₹3.18 crore.

At the current price, Vedanta shares are trading at a price-to-earnings (P/E) ratio of 9.85x, based on its trailing 12-month earnings per share (EPS) of ₹45.18, and a price-to-book (P/B) ratio of 2.35, according to exchange data.

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