Vedanta Q1 Results Highlights: Net Profit Jumps 36.5%

Vedanta Ltd reported a 36.5% increase in consolidated net profit, amounting to ₹3,606 crore for the quarter ending June 30, 2024. Their revenue from operations grew by 5.6%, reaching ₹35,239 crore. Additionally, the first quarter's EBITDA experienced a 47% rise compared to the previous year.

Vedanta Q1 Results Highlights

On August 6, Vedanta Ltd, owned by billionaire Anil Agarwal, announced a 36.5% rise in consolidated net profit, reaching ₹3,606 crore for the quarter ending June 30, 2024, compared to ₹2,640 crore during the same period last year.

The mining giant's revenue from operations increased by 5.6% to ₹35,239 crore in Q1FY25, up from ₹33,342 crore in Q1FY24, according to a filing with the exchange on August 6. 

At 2:57 PM IST on August 6, Vedanta share price on the BSE were trading at ₹415 each, reflecting a 0.3% increase.

The first quarter's EBITDA saw a 47% year-on-year increase, driven by structural cost-saving measures across various businesses, a reduction in input commodity inflation, and favorable output commodity prices. The EBITDA margin was 34% for the quarter, up from 24% in the corresponding quarter of the previous year.

The aluminium segment experienced the most significant growth, with core earnings soaring 144% to ₹4,441 crore. Alumina production at the Lanjigarh refinery reached 539 kt, reflecting an 11% quarter-on-quarter and 36% year-on-year increase, supported by new capacity. Earnings from the zinc, silver, and lead segment rose by 17.8% to ₹3,903 crore.

As of June 30, 2024, the company's net debt was ₹61,324 crore, an increase of ₹4,986 crore from ₹56,338 crore as of March 31. The net debt to EBITDA ratio was 1.5x in Q1FY25, consistent with the previous quarter but down from 1.9x in Q1FY24.

In July, Vedanta raised ₹8,500 crore through a Qualified Institutions Placement (QIP) at ₹440 per share, which commenced on July 15.

The company reported generating a robust free cash flow (pre-capex) of ₹4,371 crore, marking a 41% year-on-year increase.

Vedanta Management Commentary

The profit surge is attributed to robust prices of zinc, lead, copper, and nickel during the quarter. "This performance is indicative of strong business operations in terms of cost and volume, further boosted by high commodity prices," stated Chief Financial Officer Ajay Goel.

"Our aluminium and zinc divisions consistently surpass industry benchmarks, ranking in the top quartiles and deciles globally for cost efficiency. These successes are the result of our strategic emphasis on cost management, which has led to a 20% year-over-year reduction in overall costs," noted Arun Misra, Executive Director of Vedanta Ltd.

About Vedanta Ltd

Vedanta Ltd (Vedanta) is a diversified natural resource company engaged in the exploration, extraction, and processing of minerals and oil and gas. It produces and sells oil and gas, aluminium, copper, iron ore, and power, with a product portfolio that includes zinc, lead, silver, iron ore, steel, copper, and aluminium. 

The company also produces pig iron and metallurgical coke. Vedanta has strategic assets and operations in India, South Africa, and Namibia, and maintains a presence in the US, Asia-Pacific, Europe, the Middle East, and Africa. The company is headquartered in Mumbai, Maharashtra, India.