Buoyed by a 43% rise in net profit in the latest quarter, metal and mining firm Vedanta Ltd’s shares hit a 52-week high of Rs 346.4 this morning. Vedanta reported 43% year-on-year rise in net profit at Rs 2,036 crore in Q2FY18 as against Rs 1,424 crore in the same quarter previous fiscal. Consolidated EBITDA registered a 24 per cent year-on-year rise to Rs 5,776 crore during the quarter under review against Rs 4,647 crore in the same period last year. Global research and brokerage firm Macquarie noted that the EBITDA was 5% below its estimates due to higher costs in the Aluminium division. The revenue in September-17 quarter rose by 37 per cent backed by higher volume at Copper India, Zinc India, Zinc International, and higher commodity prices partially offset by currency appreciation. Net sales of the company stood at Rs 21,520 crore in September quarter.
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Macquarie has raised its target price on the shares to Rs 372, implying an upside of nearly 8% from the current market prices. The earlier target price was Rs 341. Notably, Vedanta Ltd shares have returned nearly 60% since January. The Sensex is up by more than 26% in the same period. In the last one month alone, the shares have returned 10%.
“PAT and EBITDA growth was on the back of solid operational performance in zinc and copper businesses, supported by strong commodity prices. We expect second half of FY18 of this fiscal year to be more robust with the continuing production ramp up and we continue to maintain a strong balance sheet and remain focused on creating long term shareholder value,” Kuldip Kaura, Chief Executive Officer, Vedanta said yesterday.