Evaluating a conglomerate’s performance is tricky as it is. In the case of Vedanta Ltd, which consists of several commodity businesses, things have become even more complicated for investors lately, thanks to the company’s large investment in a promoter group firm. The stock has lost 21% since January, when Vedanta announced the investment plan.
Despite this dull backdrop, the company’s operating profit for the March quarter increased 6% sequentially and exceeded analysts’ estimates. The earnings beat was driven by higher volumes and reduction in costs. Production cost at the aluminium business dropped 12% sequentially.
Still, the Vedanta stock has lost 7.4% since it announced the March quarter results—more than the 3.7% fall in the Nifty Metal index.
