India: Vedanta Records Highest Ever Iron Ore Quarterly Sales from Karnataka in Q2

Vedanta Ltd. has recently announced its results for second quarter of FY20. The total iron ore sales recorded at 1.4 MnT, up significantly as against Q2 FY19 at 0.40 MnT. The total iron ore sales of the company were from Karnataka mines only. On quarterly basis, the sales recorded rise against 1.2 MnT in Q1 FY20.

The sales from Goa stood nil amidst operation halt post Mar’18 due to illegal mining ban. Goan miners reported a major chunk of Indian iron ore exports in past years. However, post mining ban the exports witnessed declining and dropped to nil in June’18.

Iron ore production down 6% in Q2FY20

The total production by the miner for second quarter FY20 witnessed at 1.3 MnT, down 6% compared to 1.4 MnT in Q2 FY19. However, on a quarterly basis production picked up against 1.1 MnT in Q1 FY20. The complete production of 1.3 MnT for the quarter is from Karnataka, up 18% Q-o-Q.

Source: Company Reports
Quantity in MnT

Electro steel production down 5% in Q2FY20

Vedanta recorded fall in electro steel production for the quarter at 0.270 MnT, down 5% on yearly basis. However the sales for the quarter picked up by 6% Y-o-Y to 0.283 MnT.

The miner recorded rise in production of electro steel in first half of FY20. The production witnessed at 0.645 MnT, up 15% and sales at 0.557 MnT, up 11% Y-o-Y.

Pig iron production up 2% Y-o-Y in Q2FY20

Vedanta registered 2% rise Y-o-Y in pig iron output for second quarter FY20 at 0.176 MnT.In Q1 FY20 pig iron output stood at 0.178 MnT.

Pig iron production for the first half of FY20 depicted 4% increase to 0.354 MnT against 0.339 MnT in H1 FY19.

FY 20 Guidance: Iron ore production from Karnataka mines is expected to be around 4.5 MnT p.a (on wet MT basis). Regarding Goa, updates are still pending regarding restarting iron ore mining operations.