Vedanta Q4 loss largely led by impairment in assets
Vedanta’s Q4FY20 results were weak, as expected, due to lower commodity prices. Adjusted Ebitda at Rs 4,550 crore (-13% q-o-q, -26% y-o-y) was in line with our estimate of Rs 4,520 crore. Adjusted PAT at Rs 790 crore (-46% q-o-q, -66% y-o-y), however, came in above our estimate of Rs 460 crore, led by lower finance cost.
On a reported basis, however, the PAT loss of Rs 12,080 crore was witnessed due to the exceptional loss of Rs 10,610 crore (net of tax) and exceptional tax booking of Rs 2,430 crore. Exceptional loss was due to the impairment of assets worth Rs 16,580 crore (Rs 15,910 crore in oil & gas due to lower oil prices and Rs 670 crore in copper) and provisions of Rs 560 crore for receivables under litigation.
