Vedanta Limited reports record high quarterly revenue and EBITDA
In a notable financial performance, Vedanta Limited has announced its unaudited consolidated results for the second quarter and half year ending September 30, 2023, with the company achieving its highest ever second-quarter consolidated revenue of ₹38,546 crore, marking a 16% quarter-over-quarter increase. This financial milestone is underscored by an equally impressive highest ever quarterly EBITDA of ₹11,834 crore, a substantial 70% rise from the previous quarter, boasting a margin of 35%.
Vedanta’s Robust Financial and Operational Performance
Vedanta’s profitability also saw a dramatic upturn, with Profit After Tax (PAT) before exceptional items climbing to approximately three times that of the preceding quarter, reaching ₹4,403 crore. The firm generated a robust free cash flow (pre capex) of ₹5,694 crore in the second quarter of FY24, an 84% increment from the prior quarter. Additionally, the company reported a formidable double-digit return on capital employed at approximately 21%, a rise of approximately 462 basis points quarter-over-quarter.
Debt Management and Contributions to the Exchequer
Vedanta has effectively managed to reduce its net debt by ₹1,420 crore quarter-over-quarter to ₹57,771 crore as of September 30, 2023, with the Net Debt/EBITDA ratio improving to 1.64x from 1.88x in the first quarter of FY24. The company also made a significant contribution of ₹26,358 crore to the exchequer in the first half of FY24.
Operational Highlights Across Vedanta’s Key Businesses
The operational highlights of Vedanta showcase a strong performance across its diverse portfolio. The Aluminium business reported record-breaking production levels, with operational costs witnessing a significant reduction. Zinc India’s mining production reached unprecedented levels, aided by enhanced ore production and improved metal grades, while Zinc International saw a peak in Gamsberg plant availability despite a slight dip in MIC production.
The Oil and Gas sector maintained a stable production, with operational efficiencies leading to reduced expenses. In the Iron ore segment, Vedanta reported an increase in sales and pig iron production due to operational efficiencies. The Steel sector also saw a record half-yearly saleable production with improved margins. Facor’s operations experienced a considerable uptick in ferro chrome production and margins. Copper India, while showing an increase in cathode production quarter-over-quarter, experienced a decline year-over-year.
Executive Director Arun Misra Comments on the Results
Arun Misra, the Executive Director of Vedanta, commented on the results, stating, “I am pleased to share that we have a quarter of highest ever 2Q turnover of ₹38,546 crores with highest ever 2Q EBITDA of ₹11,834 crores on the back of strong operational volume delivery and aggressive cost reduction across the table in all businesses.”