Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian base metal producer Vedanta Limited reported a rise of 45pc in its Q2 FY21 EBITDA, according to results declared on November 6. 


EBITDA increased to Rs65.31bn ($883.4mn) from Rs44.97bn ($608.28mn) in the prior-year September quarter. The company reported profit after taxes of Rs16.44bn ($22.37mn), down by 40pc from Rs27.30bn ($369.27mn) in the prior-year period. Vedanta’s revenue dropped by 4pc to Rs208.04bn ($2.81bn).


Revenue in Q2 FY21 registered an increase of 33pc from Q1 while EBITDA was higher by 63 per cent, mainly due to higher commodity prices, higher volumes at zinc business, lower cost of production at Zinc India and aluminium business, partially offset by higher input commodity prices, rupee appreciation and reversal in renewable purchase obligation (RPO) liability in aluminium business due to capping of RE certificates at lower prices in Q1 FY2021, the company said.



Zinc India Metal in Concentrate production was at 238,000mt with the cost of production (COP) at $919/mt. Production rose by 8.67pc from 219,000mt in July-Sept quarter of 2019. MIC production rose by 17.82pc from 202,000mt in Q1. Zinc India reported 1.85pc rise to 440,000mt production in H1 2021 from the prior-year period. 


Zinc India reported 237,000mt of metal production in Q2, up by 12.85pc from 210,000mt in 2019 and up by 17.32pc from 202,000mt in prior-quarter. Its metal production rose to 439,000mt, up by 2.33pc from 429,000mt in H1, 2020. 


Zinc India reported a 10pc drop in cost of production (COP) to $919/mt since the company moved to underground operation.


Zinc International’s metal production was at 51,000mt in the July-Sept quarter, down by 19.04pc from the prior-year period and up by 34.21pc from Q1. 


Gamsberg production was at 35,000mt with COP at $1,246/mt in Q2, up by 45.83pc from 24,000mt in the prior-year period on better recovery, exchange rate depreciation and cost control measures.



Vedanta’s aluminium production at Lanjigarh rose by 12.68pc to 462,000mt from 410,000mt in Q2 and down by 3pc from 476,000mt in Q1. The cost of production of alumina rose by 4pc at $227/mt from Q1.


In Q1, aluminium COP declined to $1,288/mt, down by 30.45pc from $1,852/mt from the prior-year quarter and up by 1.57pc from the prior quarter. 


Iron ore and ESL

Iron ore Karnataka sales in Q2 were reported at 1.3mn mt, down by 7.80pc from 1.4mn mt in the prior-year quarter and up from 0.4mn mt in Q1.


In Q2, ESL Steels reported sales of 271,000mt, down by 4.24pc from mt from the prior-year quarter and down by 11.14pc from Q1with a margin of $94/mt on account of improving macro factors and steel prices market.


($1= Rs73.93)


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