Vedanta share price falls over 2% on weak Q1FY24 numbers; here's what brokerages say
Vedanta share price fell over 2% on Monday's trading session after the company's 1FY24 numbers fell in short of the street's expectations and dismayed investors. Vedanta Limited recorded a 40% (YoY) fall in net consolidated profits from 5,592 crore to 3,308 crore in its first quarter results, which were released on Friday. The company's sales decreased by 13% from 38,251 crore in the first quarter of FY23 to 33,242 crore in the first quarter of FY24.
The company declared an interim dividend of ₹18.5 per share, and during the first quarter, its dividend yield was 7%. The company's net profit increased sequentially by 6% from ₹3,132 crore in Q4FY23 . According to the company, Q1FY24 revenue decreased (QoQ) principally due to a slowdown in output commodity prices and reduced sales volumes, which were somewhat offset by higher premiums.
Vedanta Q1 Results: Net profit declines by 40% (YoY) to ₹3,308 crore; declares dividend On Monday, Vedanta share price opened at ₹273.50 apiece on BSE. The stock touched an intraday high of ₹274.75 and low of ₹270.45. According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the stock has seen a huge gap down opening and has broken below its key support of ₹275 and has sustained below it.
"We sense there may further weakness in the near term and the prices are likely the slip towards the ₹260 - 255 levels. On the flip side, bearish gap left today around ₹275 - 278 to act as resistance," added Bhosale. According to the brokerage's analysis, the company posted lower-than-expected EBITDA of ₹6,420 crore, down 31% from quarter to quarter.
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