Three Vedanta Group stocks that will react to their Q1 results today

Three newly demerged Vedanta Group companies — Vedanta Iron & Steel, Vedanta Power and Vedanta Oil & Gas — will be in focus on Thursday, July 30, after reporting their June quarter earnings. Here's a look at how each of the businesses performed.

Vedanta Iron & Steel

Vedanta Iron & Steel reported a strong set of quarterly numbers, supported by higher sales volumes, improved steel and iron ore prices, and better operating efficiencies across its manufacturing facilities.

Revenue for the quarter rose 18% year-on-year to ₹3,662 crore, while EBITDA jumped 55% to ₹508 crore, lifting the EBITDA margin to 13.9% from 10.6% a year ago.

Steel sales volumes increased 9%, while iron ore volumes rose 2% during the quarter. Lower employee and finance costs also supported profitability, with the company reporting a net profit of ₹111 crore, compared to a net loss of ₹167 crore in the year-ago period.

Finance costs declined sharply by 55%, aided by lower debt levels and inter-company settlement adjustments following the Vedanta demerger. Net debt stood at ₹2,733 crore at the end of the quarter.

The company has approved a capital expenditure programme of ₹3,697 crore, of which ₹2,565 crore has already been spent. The remaining ₹1,132 crore is expected to support future capacity expansion. The stock currently trades at around 7x annualised EV/EBITDA, broadly in line with peers.

Vedanta Power

Vedanta Power posted a sharp improvement in revenue during the June quarter, driven by higher electricity sales.

Revenue increased 31% year-on-year to ₹2,595 crore, while power sales volumes rose 38% compared to the year-ago period.

The company also reduced its operating loss to ₹199 crore from ₹417 crore a year earlier. However, the net loss widened to ₹423 crore from ₹88 crore, reflecting continued pressure on profitability.

Vedanta Power is India's fifth-largest private merchant thermal power producer, with an installed generation capacity of 4,180 MW.

Vedanta Oil & Gas

Vedanta Oil & Gas swung to a net profit of ₹945 crore during the June quarter from a loss of ₹476 crore in the preceding three months.

Revenue from operations fell 3.1% sequentially to ₹2,507 crore, while EBITDA declined 7.7% to ₹814 crore, with the EBITDA margin narrowing to 32.5% from 34.1% in the March quarter.

The quarter's bottom line was influenced by exceptional items. The company booked an exceptional gain of ₹1,056 crore from the slump sale of its Power, Nicomet and Coke businesses. This was partly offset by an exceptional loss of ₹441 crore, including an impairment charge related to the Cambay block and demerger-related expenses.