Tue Oct 08 15:30:51 UTC 2024: ## Vedanta Hits Record High in Aluminium Production, But Shares Dip

**Mumbai, India** – Vedanta, the Indian metal giant, has announced record-breaking production figures for the first half of its financial year. The company achieved its highest-ever aluminium production, reaching 1,205 kt, while also setting a new high for mined and refined zinc production in India. However, despite this positive news, the company’s stock saw a 2% drop on the BSE, hitting a day’s low of ₹501.

**Strong Performance Across the Board:**

Vedanta’s aluminium production saw a significant increase, fueled by a 36% YoY jump in Alumina production at its Lanjigarh refinery, reaching 539 kt. This growth was attributed to expanded capacity at the refinery. Additionally, the company’s cast metal production of aluminium rose 3% YoY to 596 kt, while the cost of production for this metal decreased by 11% YoY.

The company also reported impressive performance in its zinc operations. Zinc international volumes rose by 16% quarter-on-quarter, while power sales grew by 10% year-on-year in the first half, driven by increased generation from thermal plants. Silver volumes surged by 10% compared to the previous quarter.

**Strong Profitability:**

Vedanta reported a 37% YoY increase in consolidated net profit for the quarter ending June 2024, reaching ₹3,606 crore compared to ₹2,640 crore in the same period last year. Revenue from operations for the quarter also saw a 6% YoY growth to ₹35,239 crore, up from ₹33,342 crore in the corresponding quarter of the previous year.

**Share Performance Contradicts Positive Results:**

Despite the impressive production and profit figures, Vedanta’s shares took a hit, dropping by 2%. This dip might be attributed to various market factors, including investor sentiment and overall market volatility. However, it’s important to note that Vedanta’s stock has performed exceptionally well in the past year, surging nearly 160% over the past twelve months. Year-to-date, the stock has almost doubled, rising by 65% over the last six months and 9.4% in the past three months.

**Outlook:**

Vedanta’s strong performance across its core businesses, coupled with its record-breaking production figures, indicates a positive outlook for the company. However, the stock market reaction highlights the complex nature of investor sentiment and the need for a more nuanced approach to understanding share performance. It remains to be seen how Vedanta’s stock will perform in the coming months, but the company’s robust fundamentals suggest a promising future.

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