Vedanta Q1 Review - High Commodity Prices Drive Record-High Earnings: Motilal Oswal

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Motilal Oswal Report

Vedanta Ltd.’s Q1 FY22 result highlights the benefit of higher commodity prices, as Ebitda rose 9% QoQ to Rs 98.7 billion, the highest ever.

Net debt/Ebitda also declined to 0.6 times, the lowest in the last four years.

The management’s intention to service the holding company’s debt by way of dividend payments provides comfort on the capital allocation and should lead to higher dividend payouts.

Moreover, the announced growth capex in aluminum should further limit the headroom for non-core investments.

With commodity prices expected to stay high in the near term, Vedanta's earnings outlook remains strong.

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