Vedanta shares Q4 results, says profit down 27% at Rs 1,369 crore; stock reacts

The Anil Agrawal-led Vedanta Ltd on Thursday reported a 27.21 per cent year-on-year (YoY) drop in consolidated net profit (attributable to owners of Vedanta) at Rs 1,369 crore for the March quarter compared with Rs 1,881 crore in the same quarter last year. The consolidated revenue from operations fell 6.14 per cent YoY to Rs 34,937 crore from Rs 37,225 crore in the corresponding quarter last year. Vedanta said sales were flattish despite lower LME and exchange rate fluctuations.

Ebitda for the quarter fell 4 per cent YoY to Rs 8,969 crore. Ebitda was up 3 per cent sequentially, mainly driven by higher volume and structural cost saving initiatives across businesses partially offset by lower LME and exchange rate fluctuations.

Following its quarterly results, shares of Vedanta were trading 0.26 per cent lower at Rs 382.25 on BSE.

Vedanta said its net debt stood at Rs 56,338 crore, down 10 per cent QoQ. Net debt to Ebitda improved to 1.5 times against 1.7 times in the December quarter. Liquidity improved 21 per cent sequentially, with cash and cash equivalent of Rs 15,421 crore, Vedanta said in a press release.

For the March quarter, Vedanta said it generated robust free cash flow (pre capex) of Rs 9,948 crore, up 131 per cent QoQ.

Management commentary

Executive Director Mr Arun 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."

Arun said Hindustan Zinc 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.”

Chief Financial Officer Ajay Goel 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 optimisation, we achieved a remarkable Ebitda margin of 30 per cent 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 $1.6bn in FY24 & through successful liabilities management, Vedanta has a balanced capital structure, and will remain committed towards value creation.”