The Business Bytes
Mumbai, November 8, 2024 (TBB Bureau): Vedanta Limited has announced its unaudited consolidated results for the second quarter (Q2) and half-year (H1) ending September 30, 2024, revealing strong financial performance, profitability, and operational achievements across its diversified portfolio.
Vedanta posted a consolidated revenue of ₹37,171 crore, marking a 10% increase year-over-year (YoY) and a 5% increase quarter-over-quarter (QoQ). The company achieved an EBITDA of ₹10,364 crore — its second consecutive quarter exceeding ₹10,000 crore — representing a 44% YoY increase. Additionally, Vedanta’s EBITDA margin rose to an industry-leading 34%, an improvement of around 900 basis points YoY, driven by enhanced cost savings, production growth, and favorable commodity prices.
Profit After Tax (PAT) before exceptional items soared by 230% YoY to ₹4,467 crore, driven by increased operational efficiency and favorable market conditions. With exceptional items factored in, including an impairment reversal in the Oil & Gas sector, PAT reached ₹5,603 crore, reflecting a 10% QoQ growth.
Vedanta’s financial health remained strong, with liquidity improving by 30% both YoY and QoQ, leading to cash and cash equivalents totaling ₹21,727 crore. The company also generated free cash flow (pre-capex) of ₹8,525 crore, a 50% YoY increase. Net debt decreased by ₹4,400 crore from the previous quarter, reducing the net debt/EBITDA ratio to 1.49x, marking its best position in six quarters.
The company bolstered its financial position by raising ₹8,500 crore through a Qualified Institutional Placement (QIP) and ₹3,133 crore via the Offer for Sale (OFS) of Hindustan Zinc Limited shares. Meanwhile, parent company Vedanta Resources Limited (VRL) raised $1.2 billion through a bond issue, cutting interest costs by over 3% and reducing VRL’s net debt by $1 billion, the lowest level in a decade.
In terms of operations, Vedanta reported record production levels across multiple business units for the first half of FY25, highlighting its commitment to driving India’s industrial and energy growth. Aluminium production reached an all-time high with first-half cast metal output of 1,205 kt, up 3% YoY, while alumina production rose 8% YoY to 499 kt with a 4% YoY reduction in production costs. Zinc India set new records with 256 kt of mined metal and 262 kt of refined metal produced in the second quarter, marking a 2% and 8% YoY increase, respectively, and recording a four-year low in production costs. Zinc International achieved its lowest-ever quarterly cost of production at the Gamsberg mine, while Oil & Gas recorded average daily production of 104.9 kboepd, supported by infill wells at the Mangala and RDG fields. Iron ore production rose by 7% YoY to 1.3 million tonnes, and copper cathodes production doubled QoQ.
Commenting on 2QFY25 results, Arun Misra, Executive Director Vedanta Limited said, “Vedanta is proud to report highest-ever first-half EBITDA of ₹20,639 crore with a 46% YoY increase. As we enter the second half of the year, which will be transformative with major projects coming online, we remain committed to operational excellence, sustainable growth, and ESG leadership.”
CFO Ajay Goel added, “This quarter showcases significant progress in our corporate initiatives, strategic growth, and operational achievements, positioning us well to deliver lasting stakeholder value.”
