Vedanta Ltd. Results

Q2FY25 Quarterly Result Announced for Vedanta Ltd.

Aluminium and Aluminium Products company Vedanta announced Q2FY25 results Financial Highllights: Consolidated Revenue of Rs 37,171 crore, up 5% QoQ and 10% YoY. Consolidated EBITDA of Rs 10,364 crore; 2nd Quarter in a row with 10k+ EBITDA, up 44% YoY. Industry best EBITDA margin of 34%, up ~900 bps YoY. Strong double-digit return on capital employed c.23%, improved ~152 bps YoY. Liquidity improved by 30% both QoQ & YoY with Strong Cash and Cash Equivalent of Rs 21,727 crore. Generated Free Cash Flow (pre capex) of Rs 8,525 crore up 50% YoY. Net debt of Rs 56,927 crore as on 30th September 2024, declined by ~Rs 4,400 crore vs June 2024. Net debt/ EBITDA at 1.49x in 2QFY25, marking the best position in last 6 quarters. Raised Rs 8,500 crore through QIP and Rs 3,133 crore through the Offer for Sale (OFS) of HZL. ICRA upgraded long term ratings from AA- to AA. Crisil Ratings revised outlook to ‘Watch with positive Implications’ from ‘Watch with Developing Implications’. Parent company, VRL, successfully raised USD 1.2 billion through a bond issue and reduced the interest costs on this debt by over 3%. Net Debt at parent entity reduced by USD 1bn in first half to reach to its lowest level in a decade. Demerger on track and in its final stages, with shareholder and creditor meetings scheduled in the coming months. Other Highlights: Renewable Energy (RE): Secured RE Power Delivery agreements (PDAs) of 1906 MW (+80MW QoQ). Initiated utilization of renewable energy in line with RE PDAs at Zinc India and Aluminium Business. Gender Diversity: Achieved our workplace gender diversity target for full-time employees 7 years in advance vs FY30 target of 20%. Gender diversity for full-time employees stands at 22% (FY24: 20%). ESG Rating: Secured top three ranking in the S&P; Global CSA assessment in 2024, for second consecutive year. CSR: Spent INR 141+ crore in 1HFY25 on CSR initiatives for communities, positively touching over 3.5 million lives. Women & Child Welfare: 6,363 Nand Ghars created for women and child welfare Arun Misra, Executive Director, Vedanta, said: “Vedanta is proud to report our highest-ever first-half EBITDA of Rs 20,639 crore with 46% growth YoY1 . The second half of this year will be a transformative period with our major growth and integration projects coming online and ramping up. Through our structural interventions and initiatives, we have significantly reduced our cost of production over the past 12-15 months, and we will continue this trend in the coming quarters. As we move forward, operational excellence, sustained growth, and ESG leadership remain our strategic priorities. With a rich, diversified asset portfolio, a stronger balance sheet, and ongoing growth projects, we are well-positioned to deliver exceptional overall performance.” Ajay Goel, CFO, Vedanta, said: “This has been an outstanding quarter, highlighted by significant progress in our corporate and strategic initiatives, strong financial results, and excellent operational performance. We delivered our highest-ever 1H EBITDA of Rs 20,639 crore, up 46% YoY, with a robust 34% EBITDA margin and PAT before exceptional items of Rs 4,467 crore, a 230% YoY1 increase. This strong performance is driven by cost efficiency, volume growth, and favourable commodity prices. Additionally, we raised USD 1.4 billion at Vedanta through a USD 1 billion QIP and a USD 400 million HZL OFS. At the same time, with the USD 1.2 billion VRL bond issuance and ongoing deleveraging, we have reduced Holdco. debt to USD 4.8 billion, the lowest level in a decade. This positions us well to generate lasting value for our stakeholders, both now and in the years to come.”

Q1FY25 Quarterly Result Announced for Vedanta Ltd.

Aluminium & Aluminium Products company Vedanta announced Q1FY25 results: Consolidated Revenue of Rs 35,239 crore, up 1% QoQ and 6% YoY. Consolidated EBITDA of Rs 10,275 crore, up 15% QoQ and up 47% YoY. Industry best EBITDA margin of 34%, ~1000 bps YoY. Profit after tax at Rs 5,095 crore, up 124% QoQ and 54% YoY. Strong double-digit return on capital employed c.25%, improved 181 bps QoQ and 763 bps YoY. Liquidity improved by 17% YoY with Strong Cash and Cash Equivalent of Rs 16,692 crore. Generated robust Free cash flow (pre capex) of Rs 4,371 crore up 41% YoY. Net debt of Rs 61,324 crore as on 30th June 2024. Net debt/ EBITDA at industry best 1.5x in 1QFY25 vs 1.9x in Q1FY24. Raised Rs 8,500 crore through one of the largest QIP in industry. All the requisite approvals secured, and demerger scheme filed with NCLT; demerger is on track. Commenting on Q1FY25 results, Arun Misra, Executive Director Vedanta said “Vedanta has delivered a strong start to the year, with exceptional EBITDA improvement of 47% and PAT improvement by 54% year over year on the back of improved margins, and robust cost reduction across all operations. Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve. These achievements are a direct result of our strategic focus on cost, as reflected in a 20% year-over-year reduction in overall Cost. Our growth projects are well on track, and we remain committed to commission the majority of these projects in FY25. Moving ahead, our focus on operational efficiency, sustained expansion, and ESG excellence will guide our journey. With this dedication, we are confident in our ability to create substantial shareholder value in the year ahead.” Ajay Goel, CFO, Vedanta, said “The start of FY25 has demonstrated phenomenal growth. In this quarter, we achieved an impressive EBITDA of Rs 10,275 crore, a jump of 47% YoY, with robust EBITDA margin of 34% and a PAT of Rs 5,095 crore, with YoY growth of 54%. This reflects strong business performance on cost and volume which is additionally supported by elevated commodity prices. The overwhelming response to the Vedanta’s $1 bn QIP, one of the largest in industry, underscores investor’s huge confidence. The proceeds from the QIP will be further instrumental in deleveraging balance sheet and reduction of finance cost. We have received all the requisite approvals and have filed the demerger scheme with the National Company Law Tribunal (NCLT) taking our demerger a step closer to reality.”

Q4FY24 Quarterly & FY24 Annual Result Announced for Vedanta Ltd.

Aluminium & Aluminium Products company Vedanta announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Consolidated Revenue of Rs 34,937 crore, flat QoQ. Consolidated EBITDA of Rs 8,969 crore, up 3% QoQ with EBITDA margin of 30%. PAT (excluding exceptional items) at Rs 2,453 crore. Strong double-digit return on capital employed ~23%, improved QoQ. Net debt/ EBITDA improved to ~1.5x vs 1.7x in Dec’23. Net debt at Rs 56,338 crore, reduced 10% QoQ. Liquidity improved by 21% QoQ with Strong Cash and Cash Equivalent of Rs 15,421 crore. Generated robust Free cash flow (pre capex) of Rs 9,948 crore, up 131% QoQ. FY24 Financial Highlights: Second ever highest annual consolidated Revenue of Rs 1,41,793 crore. Second ever highest annual EBITDA of Rs 36,455 crore, up 3%. EBITDA margin improved to 30%, up ~240 bps. Strong double-digit return on capital employed 23%, up ~240 bps YoY. Successful liability management exercise at Hold Co., resulting in a structural improvement in capital structure. Highest Dividend yield ~17% p.a. (5 Year avg), 10x vs Nifty 50 Cos, Dividend of Rs 18,572 crore paid in FY24. Arun Executive Director of Vedanta said, “FY 2023-24 has been a remarkable year for Vedanta. We have achieved record production across our key businesses, a testament to our consistent focus on operational excellence. This focus, coupled with our commitment to cost leadership, ensured strong margins even during a challenging commodity market. We're especially proud of the Lanjigarh refinery expansion to 3.5 MTPA, taking us closer to a fully integrated 3 MTPA aluminum operation. The commencement of operations at the new Bicholim mine in Goa marks a significant step in our growth journey. HZL is now the world's 3rd largest silver producer. Our commitment to sustainability has been recognized globally – we topped the ESG rankings in India and ranked 3rd worldwide. This focus is further strengthened by securing 1,826 MW of renewable power through PDAs, with the first power delivery scheduled for Q1FY25. As we move forward, operational excellence, continued growth, and ESG leadership remains our strategic priorities. With this commitment, we are confident in delivering significant value for our shareholders in the coming year.” Ajay Goel, Chief Financial Officer, Vedanta, said “Driven by operational excellence, Vedanta achieved outstanding financial results, marking the second highest annual revenue and EBITDA in our history, reaching Rs 1,41,793 crore and Rs 36,455 crore respectively. Through continued cost optimization, we achieved a remarkable EBITDA margin of 30% in FY24 with ~240 basis points annual margin expansion, underscoring our efficiency and agility. Moreover, our net debt/EBITDA ratio improved to 1.5x from 1.7x in December 2023. At Holdco, we deleveraged by USD 1.6 billion in FY24 & through successful liabilities management, Vedanta has a balanced capital structure, and will remain committed towards value creation.”

Q3FY24 Quarterly Result Announced for Vedanta Ltd.

Aluminium & Aluminium Products company Vedanta announced Q3FY24 results: Highest ever Q3FY24 consolidated Revenue of Rs 34,968 crore, up 4% QoQ and 4%YoY. Consolidated quarterly EBITDA of Rs 8,677 crore, up 21% QoQ and 22% YoY. EBITDA margin of 29% up 438 bps QoQ and 507 bps YoY. PAT before exceptional items of Rs 2,868 crore, up 112% QoQ and 8%YoY. Generated strong free cash flow (pre-capex) of Rs 4,306 crore in Q3FY24. Strong double-digit return on capital employed ~23% up 140bps QoQ. Successful Liability Management exercise at Holdco resulted in structural improvement in capital structure. Dividend of Rs 4,089 crore paid in Q3FY24. Arun Misra, Executive Director, Vedanta, said, “I am pleased to share that we have delivered the quarter of highest ever 3Q Revenue Rs 34,968 crore, up 4%YoY. Our strategic focus on substantial cost compression, paralleled by an impressive production ramp-up across businesses has helped us to deliver remarkable performance. Aluminium and zinc continued to set new benchmarks with the highest-ever nine months of production and placed in the 1st quartile cost position of global Aluminium and the first decile of Global Zinc mining cost curves, respectively. I am elated to share that Vedanta has been ranked 3rd in S&P; Global Corporate Sustainability Assessment 2023, amongst 238 global peers whereas HZL has been ranked 1st. We are very focused and confident to achieve significant milestones with the various debottlenecking projects going on across all our businesses. With our unwavering commitment to operational excellence and strong ESG practices, we are optimistic to remain well positioned to navigate challenges and seize opportunities.” Ajay Goel, Chief Financial Officer, Vedanta, said, “With our consistent focus on operational excellence, Vedanta delivered an exemplary financial performance with EBITDA of Rs 8,677 crore and PAT before exceptional items of Rs 2,868 crore. These represent a superlative increase of 21% QoQ and 112% QoQ respectively. Our continuous strategic cost optimization resulted in a remarkable 438 bps margin expansion. We are committed to rewarding our shareholders with attractive returns and have announced a dividend of Rs 11/share amounting to Rs 4,089 crore during the quarter. Our five-year average dividend yield stands 10 times higher than Nifty 50 companies. With a balanced capital structure through successful liabilities management at Holdco, Vedanta has a stronger balance sheet and will remain committed towards deleveraging and value creation.”