Vedanta Q4 Results: Revenue grows 47% from last year on higher commodity prices, margins steady

Anil Agarwal-owned mining conglomerate Vedanta Ltd. will be reporting its March quarter results on Wednesday, April 29, which will be aided by strong commodity prices globally.

A CNBC-TV18 poll expects the company's revenue to grow by 26% from last year, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter may see a 58% growth form the same quarter last year. Net profit for the period is seen growing by 64% year-on-year to ₹8,150 crore.

Vedanta is likely to report a strong quarter led by higher commodity prices in Aluminium, Zinc and Silver segments. The Aluminium segment is seen to be best placed due to lower costs of Alumina and higher prices of the metal. Some benefits of the higher prices though, are likely to be offset by hedged quantities.

EBITDA for the oil and gas division is likely to remain steady on a sequentially.

Cost of production is likely to increase due to supply constraints over the ongoing US-Iran war in West Asia and management commentary on the same will be eyed by the street.

A ramp-up at Meenaxi and Athena unit will drive higher power sales volumes, but Athena unit is currently shut.

The higher global prices are likely to aid the EBITDA for the Iron Ore division and the EBITDA of the steel business could also turn positive from a loss last year.

Vedanta owns a 60% stake in Hindustan Zinc and nearly 45% of its EBIT comes from there. With Hindustan Zinc already having reported its results, those are already factored in.

The other major trigger for Vedanta today is that it is the last day for shareholders to buy the stock for them to be eligible for the demerger benefits. The stock will trade ex-demerger from Thursday onwards.

Shares of Vedanta are at the day's high ahead of the results announcement, trading 1.2% higher at ₹748.5. Today is also the day when all futures and options contracts of Vedanta will expire ahead of the demerger.