India: Vedanta iron ore sales down 17% y-o-y in Q1 FY'21

Vedanta Ltd. has recently announced its results for Q1 FY'21. The total iron ore sales for the quarter was recorded at 1.02 mn t, down 17% as against 1.22 mn t in Q1 FY'20. The total sales from Karnataka mines witnessed a significant fall of 64% to 0.4 mn t, as against 1.2 mn t in Q1 FY'20. The remaining sales were recorded at 0.6 mn t from Goa mines.

Iron ore production down 13% y-o-y in Q1 FY'21

The total output by the miner for the quarter Q1 FY'21 was recorded at 0.95 mn t, down 13% y-o-y compared to Q1FY'20 output at 1.09 mn t. The output at Karnataka mines stood at 0.9 mn t, lower than Q1 FY20 amid the impact of COVID 19 during the initial days of April FY'21. However, the total output stood higher by 23% on quarterly basis as compared to 0.77 mn t in Q4 FY20.

There was no production at Goa due to suspension of mining pursuant to the Hon'ble Supreme Court judgement dated 7th Feb 2018 directing mining operations of all companies in Goa to stop with effect from 16th March 2018.

Pig iron production was at 109,000 t in Q1 FY2021, lower by 39% as compared to Q1 FY20 and 26% as compared to Q4 FY20 majorly due to COVID 19 impact during initial days of Apr'20.

Vedanta's iron ore performance:

Source: Company Reports
Quantity in mn t

Pig iron production down 39% in Q1 FY21

Vedanta registered pig iron production at 0.109 mn t in Q1 FY21, down 39% as compared to Q1 FY20 at 0.178 mn t and down 24% on quarterly basis as against 0.148 mn t in Q4 FY20.

Vedanta has raised domestic offers by INR 1,000/t for Aug'20, SteelMint learnt from officials. Offers for foundry grade pig iron have increased to INR 33,000/t DAP Gujarat. The company has pig iron capacity of 0.83 mnt pa.