Vedanta Limited
Regd. Office: Vedanta Limited 1st Floor, 'C' Wing,
Unit 103, Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai 400093, Maharashtra.
www.vedantalimited.com
CIN: L13209MH1965PLC291394
Vedanta Limited
Profit after tax stands at ₹3,308 crore, up 6% q-o-q for Quarter ended
30th June 2023
Mumbai, 21st July 2023: Unaudited consolidated results for the first quarter ended 30th June 2023
Financial Highlights:
- Consolidated quarterly revenue of ₹33,342 crore
- Consolidated quarterly EBITDA of ₹6,975 crore with strong margin* of 24%
- Consolidated profit after tax grew 6% q-o-q to ₹3,308 crore
- Free cash flow (pre capex) of ₹3,098 crore
- Return on capital employed 17%
- Interim dividend of ₹ 18.5/share; 1QFY24 dividend yield at ~7%
Operational Highlights:
Key businesses continue to deliver strong operating performance:
- Aluminium
- Aluminium production increased by 2% y-o-y to 579 kt
- Aluminium cost of production lower by 27% y-o-y
- Zinc India
- Highest-evermined metal production in first quarter at 257 kt, up 2% y-o-y
- Refined metal production at 260 kt; stable y-o-y
- Saleable silver production was 179 tonnes, up 1% y-o-y
- Zinc cost of production lower by 6% y-o-y; achieved ~100$/t cost improvement over last two consecutive quarter.
- Zinc International
- Overall production increased 1% y-o-y and 9% q-o-q to 68kt, primarily driven by BMM
- Black Mountain Mine production increased by 29% y-o-y to 19 kt driven by operational efficiencies.
- Overall cost of production down by 19% y-o-y
- Oil and Gas
- Average gross operated production was 134,867 boepd. The natural decline was partially
*Excludes custom smelting at copper business.
Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, | Page 1 of 6 |
Andheri (East), Mumbai 400093, Maharashtra, India. | |
CIN: L13209MH1965PLC291394 |
Sensitivity: Internal (C3)
Results for the first quarter ended 30th June 2023
offset by infill wells in Mangala, ABH and RDG fields
- Iron ore
- Declared successful bidder for Cudnem mineral block in Goa. Estimated R&R of 8.3 mnt
- Highest ever Pig Iron production at 213 kt, up 13% y-o-y on account of operational efficiency
- Karnataka saleable ore production declined by 9% y-o-y to 1.2 million tonnes
- Steel
- Saleable production increased 20% y-o-y to 324 kt on account of higher production capacity post debottlenecking carried out in FY23
- Facor
- FACOR commissioned and stabilised new 33 MVA furnace
- Ore production lower by 46% y-o-y and up 48% q-o-q in line with statutory mining limits applicable in each quarter
- Copper India:
- Due legal process is being followed to achieve a sustainable restart of the operations
ESG Highlights:
- Signed Renewable Energy (RE) power delivery agreement (PDAs) of 1826 MW across the group as on 30th June 2023
- Expanded definition of diversity beyond gender by including 38 members from the transgender community in workforce
- Workplace gender diversity maintained at 14%
- Water Positivity at 0.62
- HVLT usage at 83%
- 5,500 Nand Ghars (women and childcare centre) operational (FY23: 4,533)
- Quarterly CSR spend of ₹114 crore
- 4.4 million people benefitted from CSR programmes
-
Vedanta Aluminium received Environment Product Declaration (EPD) verification for its products
Mr Sunil Duggal, Chief Executive Officer, Vedanta, said "Vedanta is on a transformational journey with significant growth across its businesses and diversification into future enabling, technology focused sectors. We remain committed to maximizing shareholder returns through best-in-classand low-costoperations, skill development and global experience leadership with sustainability at the forefront. We have delivered Rs 6,975 cr in EBITDA this quarter, with an operating margin of 24% and PAT of Rs3,308 cr, marking a 6% increase sequentially. As we continue to move forward, we remain committed to achieving operational excellence and enhancing our competitiveness in the market. We are determined to lead the charge towards a more sustainable and responsible tomorrow."
Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, | Page 2 of 6 |
Andheri (East), Mumbai 400093, Maharashtra, India. | |
CIN: L13209MH1965PLC291394 |
Sensitivity: Internal (C3)
Results for the first quarter ended 30th June 2023
Consolidated Financial Performance:
(In ₹ crore, except as stated)
Particulars | 1Q | Q4 | FY | ||||||||||
FY2024 | FY2023 | FY2023 | FY2023 | ||||||||||
Net Sales/Income from operations | 33,342 | 38,251 | 37,225 | 145,404 | |||||||||
Other Operating Income | 391 | 371 | 705 | 1,904 | |||||||||
EBITDA | 6,975 | 10,741 | 9,362 | 35,241 | |||||||||
EBITDA Margin1 | 24% | 32% | 29% | 28% | |||||||||
Finance cost | 2,110 | 1,206 | 1,805 | 6,225 | |||||||||
Investment Income | 506 | 583 | 958 | 2,851 | |||||||||
Exploration cost write off2 | 312 | 62 | 39 | 327 | |||||||||
Exchange gain/(loss) - (Non-operational) | (203) | (332) | (117) | (492) | |||||||||
Depreciation & Amortization | 2,550 | 2,464 | 2,765 | 10,555 | |||||||||
Exceptional Items Credit/(Expense) | 1,780 | - | (1,336) | (217) | |||||||||
Profit Before Tax | 4,086 | 7,260 | 4,258 | 20,276 | |||||||||
Tax Charge/ (Credit) | 778 | 1,668 | 1,709 | 6,044 | |||||||||
Tax on Exceptional items/ (Credit) | - | - | (583) | (274) | |||||||||
Profit After Taxes before exceptional items | 1,528 | 5,592 | 3,885 | 14,449 | |||||||||
Profit After Taxes | 3,308 | 5,592 | 3,132 | 14,506 | |||||||||
Exchange rate (₹/$) - Average | 82.16 | 77.06 | 82.21 | 80.27 | |||||||||
Exchange rate (₹/$) - Closing | 82.07 | 78.83 | 82.16 | 82.16 |
- Excludes custom smelting at copper business.
- Pertains to unsuccessful exploration wells write off at Cairn
- Revenue:
- 1QFY24 Revenue is at ₹33,342 crore, compared to ₹38,251 crore in 1QFY23, the change is primarily on account of steep reduction in output commodity prices, partially offset by favourable movement in exchange rate
- 1QFY24 Revenue lower q-o-q, primarily on account of moderation in output commodity prices and lower sales volumes, partially offset by higher premiums
- EBITDA and EBITDA Margin:
- 1QFY24 EBITDA is at ₹6,975 crore as against ₹10,741 in 1QFY23 and ₹ 9,362 in 4QFY23, the difference is on account of lower output commodity prices and lower sales, partially offset by moderation of input commodity prices
- EBITDA margin1 stood at 24% in 1QFY24
- Depreciation & Amortization:
- Depreciation & amortisation for 1Q FY24 is at ₹2,550 crore, as against ₹2,464 crore in 1QFY23, mainly on account of capitalisation of assets at VAL and higher amortisation at
HZL
- Depreciation & amortisation decreased q-o-q mainly due to decrease in amortization at HZL
- Finance Cost:
- 1QFY24 finance cost is at ₹2,110 crore, as compared to ₹1,206 crore in 1QFY23 and ₹1,805 crore in 4QFY23, difference is mainly due to increase in blended cost of borrowings and average borrowings
Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, | Page 3 of 6 |
Andheri (East), Mumbai 400093, Maharashtra, India. | |
CIN: L13209MH1965PLC291394 |
Sensitivity: Internal (C3)
Results for the first quarter ended 30th June 2023
- Investment Income:
- 1QFY24 Investment Income is at ₹506 crore, as against ₹583 crore in 1QFY23 mainly due to change in investment mix and mark to market movement
- 1QFY24 Investment Income lower by q-o-q due to change in investment mix, mark to market movement and interest on income tax refund in Q4 FY23
- Taxes:
- 1QFY24 normalized Effective Tax Rate (ETR) excluding exceptional item of ₹1,780 crore is 34%, compared to 23% in 1QFY23 and 31% in 4QFY23. The movement is largely on account of change in profit mix
- Leverage, liquidity, and credit rating:
- Gross debt stood at ₹73,484 crore as on 30th June 2023
- Net debt was of ₹59,192 crore as on 30th June 2023
- Cash and cash equivalents position remains strong at ₹ 14,292 crore. The Company follows a Board-approved investment policy and invests in high quality debt instruments with mutual funds, bonds, and fixed deposits with banks.
- The company has investment grade credit; rated 'AA' with negative outlook by both CRISIL and India Ratings
Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, | Page 4 of 6 |
Andheri (East), Mumbai 400093, Maharashtra, India. | |
CIN: L13209MH1965PLC291394 |
Sensitivity: Internal (C3)
Results for the first quarter ended 30th June 2023
Key Recognitions:
Vedanta has consistently received various awards & accolades. Few recognitions from 1QFY24 are:
- VAL - J awarded 21st Greentech Best Occupational Health Practices Award by Greentech Foundation
- VAL - L awarded with Excellence Award by Quality Circle Forum of India in Business Excellence Category
- BALCO awarded with National Award for Manufacturing Competitiveness by International Research Institute for Manufacturing (IRIM)
- VAL - J, BALCO, Cairn Oil and Gas, HZL and Sterlite Copper have been certified as Great Place to Work by Great Place to Work Organization for Excellence in Human Resource Management
- Cairn Oil and Gas awarded with International Safety Award by British Safety Council
- Cairn Oil and Gas received Future Ready Organization Award by Economic Times for Technology and Innovation Category
- HZL awarded with 'Energy Efficiency Platinum award by Apex India Green Leaf Foundation for Energy Efficiency
Results Conference Call:
Please note that the results presentation is available in the Investor Relations section of the company website https://www.vedantalimited.com/eng/investor-relations-overview.php#resultsReports
Following the announcement, a conference call is scheduled at 8:00 PM (IST) on July 21, 2023, where the senior management will discuss the company's results and performance. The dial-in numbers for the call are as below:
Event | Telephone Number | ||||
Earnings conference call on | Universal Dial-In | +91 22 6280 1114 | |||
July 21, 2023, from 8:00 - 9:00 | +91 22 7115 8015 | ||||
PM (IST) | |||||
India National Toll | 1 800 120 1221 | ||||
Free | |||||
Canada | 01180014243444 | ||||
Hong Kong | 800964448 | ||||
International Toll | Japan | 00531161110 | |||
Netherlands | 08000229808 | ||||
Free* | |||||
Singapore | 8001012045 | ||||
UK | 08081011573 | ||||
USA | 18667462133 | ||||
Online Registration Link | Click here - Registration Link | ||||
Call Recording | Will be available on website July 22, 2023 onwards | ||||
*In case of dial-ins from any other country, please use the online registration link for relevant dial in numbers | |||||
Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, | Page 5 of 6 |
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394
Sensitivity: Internal (C3)
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Vedanta Limited published this content on 21 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2023 13:51:07 UTC.