Vedanta Stumbles: Three Key Group Stocks Plunge Amid Sharp Decline in Oil Gas and Raw Material Output
Three recently-listed stocks within the Vedanta Group witnessed a continuous period of profit booking on July 7, declining by up to 5%. The share prices of several subsidiaries are currently facing headwinds following updates regarding their production levels across core sectors.On the day, Vedanta Oil and Gas declined 5.2% to Rs 36.91 apiece. Shares of Vedanta Iron and Steel and Vedanta Power also fell significantly, registering declines of 5% and 2.7%, respectively. Meanwhile, Vedanta Aluminium was trading lower, witnessing a 4% dip in the market.
Vedanta Oil & Gas Production Declines Significantly
Vedanta Oil and Gas reported production updates for its first quarter, showing a considerable downturn in key metrics. The company’s average daily gross production dropped by 17%, falling to 77.7 kboepd. This figure is compared against 93.2 kboepd recorded in the same period of the previous financial year.Furthermore, total oil and gas volumes at the entity saw a 17% decline. The volume stood at 7.1 kboepd, down from 8.5 kboepd reported in the corresponding period of the last fiscal year.
Iron and Steel Production Shows Marginal Growth
In an exchange filing regarding Vedanta Iron & Steel, salable iron ore production advanced by 4%. It reached 2.6 million DMT, up from 2.5 million DMT recorded in the same period of the previous financial year.The growth in iron ore production was not uniformly distributed across regions. While output from Goa and Odisha saw an increase, production from other areas, such as Karnataka, declined by 46%. These factors resulted in a marginal growth status for the company's Q1 results.
On the steel manufacturing front, overall saleable steel production expanded by 4%. It reached 582 kilotonnes, up from 562 kilotonnes recorded in the first quarter of the previous financial year.
Vedanta Aluminium Production Rises Amid Stock Slip
Vedanta Aluminium Metal’s production data for the first quarter ended June 30 showed a positive trend compared to the prior period. The company's overall aluminium production rose by 5%.The figures stand at 632 kilotonnes (kt) for the current quarter, having been 605 kt in the same period of one year ago. Despite this rise, the stock was trading down by 4% on July 7.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.