Anil Agarwal-led Vedanta Ltd reported a 54% year-on-year jump in its net profit at ₹5,095 crore for April-June quarter of 2024-25 compared to ₹3,308 crore in Q1 FY24, the metal-to-mining giant says in an exchange filing.
The company's Q1 FY25 consolidated revenue was recorded at ₹35,239 crore, up 6% YoY driven by favourable market prices. EBITDA for the said quarter increased by 47% to ₹10,275 crore vs ₹6,975 crore in the year-ago period, driven by structural cost-saving initiatives across businesses, easing of input commodity inflation, and favourable output commodity prices. Vedanta's EBITDA margin for the said quarter stood at 34%, which showed an improvement of 1,000 bps.
"(The company recorded) strong double-digit return on capital employed c.25%, improved 181 bps QoQ and 763 bps YoY. Liquidity improved by 17% YoY with Strong Cash and Cash Equivalent of ₹16,692 crore," says Vedanta.
The company generated free cash flow (pre-capex) of ₹4,371 crore in the said quarter, up 41%, while its net debt stood at ₹61,324 crore.
Elaborating on operational highlights, Vedanta says its overall cost of production declined 20% on the back of structural changes and other initiatives. In aluminium, Vedanta's cost of production dipped 11%, while zinc saw "highest ever" refined metal production at 262 kt, up 1% YoY. The company says its Karnataka saleable ore production at 1.2 million tonnes was down 4% YoY due to the temporary suspension of mine production during May'24. Vedanta says it is evaluating legal remedies for the sustainable restart of the Tuticorin copper plant.
Arun Misra, executive director, Vedanta says the company has delivered a strong start to the year. “Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve.”
He says the company has focussed heavily on cost, as reflected in a 20% year-over-year reduction in overall cost. “We remain committed to commissioning the majority of these projects in FY25. Moving ahead, our focus on operational efficiency, sustained expansion, and ESG excellence will guide our journey.”
Vedanta raised ₹8,500 crore through one of the largest QIPs in the said quarter. Ajay Goel, CFO, Vedanta, says the Q1 numbers reflect strong business performance on cost and volume. “The overwhelming response to the Vedanta’s $1 bn QIP, one of the largest in the industry, underscores investor’s huge confidence. The proceeds from the QIP will be further instrumental in deleveraging the balance sheet and reduction of finance cost.”
CRISIL Ratings and India Ratings have maintained the ratings of Vedanta at CRISIL AA- and IND A+, respectively, in 1Q FY25, while continuing on “Watch” with developing implications. Vedanta shares are trading 0.35% up (3.22 pm) at ₹ 415.10 on the BSE.
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