India: Vedanta's iron ore production stable y-o-y, sales fall in FY23

Vedanta Ltd has released its operational results for the financial year 2023 (FY23). These are the highlights-

Iron ore production stable y-o-y

Iron ore production was recorded at 5.4 million tonnes (mnt) in FY23, stable y-o-y, due to operational efficiencies.

In Q4FY23, production was recorded at 1.6 mnt, increasing by 12% y-o-y and 6% q-o-q.

The total material mined was entirely from the company's Karnataka mines, as Goa mines remained out of operation following a 2018 Supreme Court ban.

Sales down 18% y-o-y

Iron ore sales volume was recorded at 5.6 mnt in FY23, down 18% y-o-y compared to 6.8 mnt in FY22.

In a crucial development, the Supreme Court, on 20 May, 2022, lifted curbs on iron ore exports from Karnataka and eased all restrictions on sales of iron ore from the districts of Bellary, Chitradurga and Tumkur where mining activity had been prohibited following rampant encroachment in forest land by mining companies and illegal mining in 2011. Following the court's decision, many miners were awaiting clarity on sales which led a fall in volumes in May and June last year, affecting the total sales volume in FY23.

In Q4FY23, sales were recorded at 1.7 mnt, a sharp decrease of 28% y-o-y compared to 2.3 mnt in Q4FY22.

Pig iron production falls 12% y-o-y

The company's pig iron production stood at 695,000 t in FY23, lower by 12% y-o-y compared to 790,000 t in FY22 as production was impacted due to shut down of a furnace for relining activities.

In Q4FY23, the company's pig iron output stood at 186,000 t, up by 4% y-o-y against 178,000 t in the corresponding quarter last year.

Saleable steel output inches up y-o-y

Saleable steel production rose by 2% y-o-y to 1.29 mnt in FY23 with increased production of TMT bars and ductile iron pipes.