Vedanta Ltd. has recently announced its results for third quarter of FY19. The total iron ore sales recorded at 0.7 MnT, down sharply by 63% as against Q3 FY18 at 1.8 MnT. Out of the total sales for the quarter 86% of total sales i.e 0.6 MnT ( down 28% against Q3 FY18) accounted for sales from Karnataka, while the remaining 0.1 MnT (down 90% against Q3 FY18) from Goa.
The sales have dropped from Goa amidst operation hault post Mar’18 due to illegal mining ban. Goan miners reported a major chunk of Indian iron ore exports. However, post mining ban the exports witnessed declining and dropped to nil in June’18.
1. Iron ore production from Karnataka mines up significantly in Q3 FY19
The total production by the miner for quarter ending Dec’18 witnessed at 0.7 MnT, solely from Karnataka. The production on yearly basis dropped 28% against 0.9 MnT in Q3 FY18. The production from Karnataka increased sharply in Q3 FY19 against 0.1 MnT in Q3 FY18. However, the production at Goa stands nil, amidst operation suspension, but, the miner is in negotiation talks with govt. for mines resumption at Goa.
| Vedanta | Q3 FY19 | Q3 FY18 | Y-o-Y (%) | Q2 FY19 | Q-o-Q(%) |
| Production | 0.7 | 0.9 | -28% | 1.4 | -50% |
| Goa | 0 | 0.8 | -100% | 0 | 0% |
| Karnataka | 0.7 | 0.1 | 600% | 1.4 | -50% |
| Total Sales | |||||
| Sales | 0.7 | 1.8 | -63% | 0.4 | 75% |
| Goa | 0.1 | 1 | -90% | 0.1 | 0% |
| Karnataka | 0.6 | 0.8 | -28% | 0.2 | 200% |
Source: Company Reports
Quantity in MnT
For FY19 (Apr-Jan’19) total iron ore sales is recorded at 2.4 MnT, with 1.3 MnT at Goa and 1.2 MnT from Karnataka mines. The production for the nine months (Apr-Jan’19) is recorded at 3.5 MnT. Karnataka accounted for 91% of total production at 3.2 MnT and Goa at 0.2 MnT.
2. FY19 Guidance
Vedanta, Goa iron ore production guidance for FY19 remains nil. However for Karnataka, miner has laid guidance of 4.5 MnT p.a for FY19.
3. Electro steel production up 14% in Q3FY19
Vedanta recorded rise in quarterly production of Electrosteel. The production witnessed at 0.33 MnT in Q3 FY19, up 14% as compared to Q2 FY19 at 0.23 MnT.
4. Plans to increase coal linkages
Vedanta reported improvement in long term coal linkages. 3.2 MnT linkage Tranche IV taking coal security to 72%, Offtake to start from Q4 FY19.
5. Pig iron production at 163,000 MT
Vedanta registered pig iron production of 163,000 MT in Q3 FY19 against 173,000 MT in previous quarter. Pig iron sales recorded at 155,000 MT in Q3 FY19 against 173,000 MT in previous quarter.
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