Vedanta Limited
Consolidated Results forthe 2ndQuarter and Half Yearended 30thSep2021
Financial
Record consolidated quarterly Revenue of ₹30,048 crore, up 44% Y-o-Y
Recordquarterly EBITDA of ₹ 10,582crore, up 62% Y-o-Y
Attributable PAT (before exceptional items) at ₹ 4,644 crore, up 486% Y-o-Y
Record consolidated Half Year Revenue of ₹58,153 crore, up 59%
Record Half Year EBITDA of ₹20,613 crore, up96%
ESG
Commits to Net-Zero Carbon by 2050 or sooner
Pledges US$5 billion over next 10 years to accelerate transition to Net-Zero
Renewed focus to be the leading ESG performer in the natural resources sector
Operational
Strong volume performance across business segments
Sustained margins on strong commodity prices
Capital allocation and Deleveraging
Net Debt at ₹ 20,389 crore, reduced by ₹ 7,232 crore Y-o-Y
Net Debt/EBITDA ratio at 0.5x, lowest in last 4 years
Continues with the track record of rewarding shareholders with an interim dividend of ₹ 18.5 per share, (₹ 6,855 crore) in Q2 FY2022
Mumbai, India: Vedanta Limited today announced its unaudited consolidated results for the secondquarter (Q2) and half year ended 30thSeptember 2021.
Financial Highlights
Mr Sunil Duggal, Chief Executive Officer, said “Vedanta has set its sights on becoming a leader in terms of our ESG performance in the metals & mining sector, with a strong commitment towards achieving Net-Zero Carbon by 2050 or sooner, increasing workplace diversity, and a commitment to improve the quality of life of more than 100 million women & children. We are confident that these goals will also translate into improved financial performance, de-risk the business and create opportunities in the emerging green economy.
We continued our strong growth momentum this quarter as well, reporting record quarterly and half-yearly Revenue and EBITDA. We reported consolidated quarterly Revenue of ₹ 30,048 crore, up 44% Y-o-Y and quarterly EBITDA of ₹ 10,582 crore, up 62% Y-o-Y. Our attributable PAT (before exceptional items) stood at ₹ 4,644 crore, up 486% Y-o-Y. We witnessed steady volume performance across business segments, and sustained margins benefitting from high commodity prices despite a challenging cost environment. We continue to focus on prudent capital allocation and deleveraging. We reduced net debt by ₹ 7,232 crore Y-o-Y. We continue our commitment of rewarding shareholders with interim dividend of INR 18.5 per Share, entailing pay-out of ₹ 6,855 crore.“
Revenue for Q2 FY2022 was at ₹30,048crore,higherby 7% Q-o-Q, primarilysupported by improved commodity prices,partially offset by lower sales volume at Zinc and Iron Ore business.
Revenue for Q2 FY2022 was higher by 44% Y-o-Y, primarily supported by improved commodity prices and higher volumes across businesses, partially offset by lower sales volume at Zinc India, copper and TSPL.
EBITDA and EBITDA Margin
EBITDA for Q2 FY2022 was at ₹10,582crore, higherby 5% Q-o-Q, primarily supported byimproved commodity prices, partially offset by lower volumes at Zinc&Iron Ore business, and higher COPimpacted by input commodity inflation.
EBITDA for Q2 FY2022 was higher by 62% Y-o-Y, primarily supported by improved commodity prices and higher volumes at Aluminium. This was partially offset bylower sales volume at Zinc business and higher COP impacted byinput commodity inflation.
We hada robust EBITDA margin1 of 40% during the quarter compared to 36% in Q2 FY2021.
Depreciation & Amortization
Depreciation & amortisation for Q2 FY2022 was at ₹2,118crore,flatQ-o-Q
Depreciation & amortisation for Q2 FY2022 was higher by 9% Y-o-Y, primarily on account of higher capitalization at Aluminium and oil & Gas and higher ore production atZinc business.
Finance Cost and Investment Income
Finance cost for Q2 FY2022 was at ₹ 1,066crore, down by 10% Q-o-Q and 19% Y-o-Y,primarily due to lower average borrowings in the quarter.
Investment Income for Q2 FY2022 was at ₹579crore, down by 20%Q-o-Q, due to Mark to Market movement and one-time gain in Q1 FY2022.
Investment Income for Q2 FY2022 was down by 5% Y-o-Y, primarily due to Mark to Market movement and change in investment mix.
Exceptional Items
Exceptional items for Q2 FY2022 was at ₹46crore, primarily on account ofCWIP impairment at ESLSteel.
Taxes
The normalized ETR was 26% (excl. tax on exceptional items) that shows no variance to Q1 FY2022.
Attributable Profit after Tax and Earnings per Share (EPS)
Attributable Profit after Tax (PAT) before exceptional itemsfor the quarter was at ₹4,644crore up 8% Q-o-Q and 486% Y-o-Y.
EPS for the quarter before exceptional items was at ₹12.53per share compared to ₹11.55per share in Q1 FY2022 and ₹ 2.14 per share in Q2 FY2021.
We have strongcash and cash equivalents of ₹30,650crore. The Company follows a Board-approved investment policy and invests in high quality debt instruments with mutual funds, bonds, and fixed deposits with banks.
Gross debt was at ₹51,040crore on 30thSeptember 2021, decreasedby₹11,719croreY-o-Y. This was mainly due to deleveraging at Zinc and Aluminium business.
Net debt was at ₹20,389crore on 30thSeptember2021, reduction of₹7,232 crore Y-o-Y,primarily driven by strong cash flow from operations post capex and dividend pay-out.
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