India: Vedanta Pig Iron Production Up 4% in Q2 FY19

Vedanta Resources (erstwhile Sesa Goa) in its quarterly results reported increased Pig iron production by 4% Q-o-Q & 26% Y-o-Y in Q2 FY19. Meanwhile in comparison with half yearly production, it surged by about 13% in H1 FY19 (Apr-Sep) as against same preceding FY18.

Vedanta Resources is one of India's largest pig iron producer. The company largely produces foundry pig iron and supply majorly to North & Southern India and surrounding markets as well.

The company reported about 173,000 MT pig iron production in Q2 FY19 as against previous quarter at 167,000 MT (Q1 FY19) and same preceding last year 137,000 MT (Q2 FY18). Hence, the Q2 FY19 production moved up by 4% Q-o-Q & 26% Y-o-Y.

Vedanta's total Pig iron production during first half (H1) of FY19 (Apr-Sep) stood at about 339,000 MT, climb by 13% as compared to 300,000 MT in H1 FY18 (Apr-Sep).

Highlights:

-- India's bulk pig iron exports is about 171,000 MT during Jan-Sep'18, in which Vedanta's contribution is about 65,700 MT (38.44%), as per vessel line up data maintained by SteelMint stats

--Vedanta's iron ore operations from Goa remain suspended due to state-wide directive from Supreme Court; continue to engage with the govt. for resumption of mining operations

--Production of saleable ore at Karnataka was up 36% Y-o-Y to 2.6 MnT in H1 FY19 due to increase in mining cap from 2.3 MnT to 4.5 MnT

--As per reports, Vedanta Limited completed the acquisition of 90% share capital of Electrosteel Steels Limited (ESL) on 4th Jun'18, following which the company consolidating the financials of ESL for a 10 month period in FY2019. ESL has installed capacity of steel about 2.5 Million Tones (MnT) in Bokaro, Jharkhand, East India with blast furnace/basic-oxygen-furnace technology. The company has been producer of pig iron & finished products and supplies largely to North-east & Central regions of India. Its also actively involved in exports of Finished steel products to the neighboring countries.