Vedanta - Profit Chappar Phad Ke

Vedanta is manufacturing about  22 lakh MT annually, of Aluminum, with Cost of Producton at US $ 1,526 per MT. Zinc production is annually at 10 lakh MT. Zinc prices have risen from US $ 3,000 per MT, ruling on 1-10-21, to US $ 3,795 per MT on 15-10-21, a rise of 26% in a fortnight. Zinc prices are likely to rule firm for this quarter, due to low inventiory seen on LME. This translates into additional realisation of Rs. 1,400 cr per quarter, or about  Rs. 1,000 cr as PBT for Q3.

Even Aluminium prices have risen from US $ 2,850 per MT, ruling on 1-10-21, to US $ 3,150 per MT on 15-10-21, a rise of 10% in a fortnight. Aluminium prices are also likely to rule firm for this quarter, due to coal shortage globally, leading to rising cost of power, coupled with low inventiory seen on LME. This translates into additional realisation of Rs. 1,250 cr per quarter, or about  Rs. 1,000 cr as PBT for Q3.

When things works, it work from all sides. There is say, paancho ungliya ghee mein. We add further aur sar kadhai mein.

Share having risen by Rs. 50, by over 17% in last 1 week, is just the beginning and can meet our targets given in BG Call, much ahead of its time horizon there.

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