Vedanta Limited is confident about reaching its mined and refined metal volume guidance targets and surpassing its prior guidance on production costs for fiscal 2021, ending on March 31, 2021.
The producer noted on Friday, it attained a strong financial performance and balance sheet along with project supply in its oil and gas business in Q3 FY2021. The company continues to boost zinc, iron, and steel output as noted in its prior report.
The metal supplier’s aluminum segment had a strong third quarter with shipments up 5pc at 497,000mt from the prior quarter as it continued with cost streamlining from integration and systemic improvements.
The company’s net sales improved 6.5pc to Rs225bn ($3.1bn) in October-December 2020 compared to Rs211bn in the prior-year period. The improvement was due to higher commodity prices and volumes at Zinc India along with its iron ore business. Depreciation of the rupee was also a factor for higher revenue. However, Vedanta’s net sales fell by 7.9pc to Rs590bn in April-December 2020 from Rs640bn in the prior nine-month period.
The steelmaker’s EBITDA rose 18pc to Rs76.95bn in Q3 of fiscal-2021 compared to Rs65.31bn in the prior quarter. This level marks a record quarterly high for more than two years and was due to higher commodity prices and sales in aluminum, iron ore, and steel divisions, though partly offset by raised input commodity prices and rupee appreciation.
The company recorded EBITDA at Rs182bn, up 12pc in April-December 2020 compared to Rs162bn in the same 2019 period.