Vedanta Limited Q3 FY2024 Results: EBITDA of ₹8,677 Crore

Financial Highlights: Performance Momentum and Financial Strength

1. Consolidated Revenue:

Achieved the highest-ever 3Q consolidated revenue of ₹34,968 crore, marking a robust 4% QoQ and 4% YoY growth.

2. Quarterly EBITDA:

Delivered consolidated quarterly EBITDA of ₹8,677 crore, showcasing a substantial 21% QoQ and 22% YoY increase.

3. EBITDA Margin:

 Demonstrated an EBITDA margin of 29%, reflecting a remarkable improvement of 438 bps QoQ and 507 bps YoY.

4. Profit After Tax (PAT):

PAT before exceptional items soared to ₹2,868 crore, registering an impressive 112% QoQ and 8% YoY rise.

5. Free Cash Flow:

Generated a robust free cash flow (pre capex) of ₹4,306 crore in 3QFY24, reinforcing financial stability.

6. Return on Capital Employed (RoCE):

Achieved a strong double-digit RoCE of ~23%, exhibiting a noteworthy increase of 140 bps QoQ.

7. Liability Management and Dividend:

• Successfully executed a Liability Management exercise at Holdco, resulting in a structural enhancement in the capital structure.
• Paid a dividend of ₹4,089 crore in 3Q, showcasing commitment to shareholder value.

Additional Read: Q3 Results Dashboard

Operational Highlights: Operational Excellence Across Diverse Segments

1. Aluminium:

• Recorded the highest-ever quarterly aluminium production at 599kt, up 6% YoY and 1% QoQ.
• Achieved the lowest quarterly Aluminium CoP in the last 6 quarters, driving operational efficiency.

2. Zinc India:

• Attained the highest-ever 9M mined metal at 780kt and silver production at 556 tonnes.
• Implemented significant cost reduction measures with a quarterly reduction of 15% YoY and 4% QoQ.

3. Zinc International:

• Achieved 9M mined metal production at 175kt with 126kt production at Gamsberg.
• Reinitiated a 700ktpa Magnetite project to recover iron ore from tailings, enhancing sustainability.

4. Oil and Gas:

• Submitted India’s first Field Development Plan under OALP regime for Jaya field, Gujarat, with production commenced.
• Achieved an average gross operated production of 131kboepd in 9MFY24.

5. Iron Ore:

• Increased Karnataka ore sales by 43% YoY and 11% QoQ to 1.6mn tonnes.
• Achieved the highest-ever 9M Pig Iron production, up 24% YoY to 633kt.

6. Steel and Other Segments:

• Recorded the highest-ever 9M saleable production in steel at 1,043kt, marking a 16% YoY growth.
• Facor demonstrated improved operational efficiency in chrome ore and ferro chrome production.

7. Copper India:

• Achieved a significant increase in cathode production at 43kt, up 27% YoY and 23% QoQ.

ESG Highlights: Commitment to Sustainable Impact

1. Corporate Sustainability Ranking:

• Ranked 3rd in S&P Global Corporate Sustainability Assessment (CSA) in the Metal and Mining Industry Group, reaffirming commitment to ESG excellence.

2. Environmentally Friendly Initiatives:

• Inaugurated 6 LNG vehicles, contributing to an estimated GHG reduction of ~2000 tons of CO2.
• Flagged off 10 EV trucks at Rampura Agucha Mine, showcasing commitment to sustainable transportation.

3. Conservation and Plantation:

• Achieved 100% ash utilisation in the Aluminium business.
• Planted 2.1 million trees across Vedanta, progressing towards the commitment to plant 7 million trees.

Consolidated Financial Performance

(In ₹ crore, except as stated)

Particulars	Q3	Q2	% Change	Q3	% Change
	FY2024	FY2024		FY 2023
Net Sales/Income from operations	34,968	33,7381	4%	33,691	4%
Other Operating Income	573	399	44%	411	39%
EBITDA	8,677	7,1971	21%	7,100	22%
EBITDA Margin2	29%	25%1		24%
Finance cost	2,417	2,523	(4%)	1,572	54%
Investment Income	724	566	28%	679	7%
Exploration cost write off	92	270	(66%)	130	(29%)
Exchange gain/(loss) (Non-operational)	1	(11)		134	(99%)
Depreciation & Amortisation	2,788	2,642	6%	2,720	2%
Tax Charge/ (Credit) other than exceptional	1,237	9621	29%	839	47%
PAT before exceptional items	2,868	1,3551	112%	2,652	8%

Additional Check: Vedanta Limited Share Price

Financial Performance Overview:

1. Revenue Dynamics:

• Recorded a robust 3QFY24 revenue of ₹34,968 crore, marking a 4% QoQ growth, driven by increased sales volume, favourable output commodity prices, and a positive movement in exchange rates.
• Achieved a YoY revenue growth of 4% in 3QFY24, attributed to higher sales volume, premia, and a favourable exchange rate, partially offset by a decrease in commodity prices.

2. EBITDA and EBITDA Margin:

• Demonstrated a resilient 3QFY24 EBITDA of ₹8,677 crore, reflecting a substantial 21% QoQ growth due to improved operational performance, favourable forex impact, and higher output commodity prices.
• Achieved a commendable 22% YoY growth in 3QFY24 EBITDA, driven by softening input commodity prices, improved cost of production, higher premia, and favourable forex movement, partially offset by a decrease in output commodity prices.

3. Depreciation & Amortisation:

Experienced a 6% QoQ and 2% YoY increase in depreciation and amortisation, primarily attributed to capitalization at HZL.

4. Finance Cost:

Recorded a finance cost of ₹2,417 crore in 3QFY24, reflecting a 4% QoQ decrease due to one-time expenses in 2QFY24, partially offset by an increase in the average cost of borrowings in 3QFY24.

5. Investment Income:

• Witnessed a 28% QoQ increase in investment income for 3QFY24, reaching ₹724 crore, mainly due to a one-time gain from the sale of long-term investment.
• Achieved a 7% YoY growth in investment income, primarily attributed to a one-time gain from the sale of long-term investment, partially offset by a decrease in average investments.

6. Taxes:

• Normalised Effective Tax Rate (ETR) for 3QFY24 stood at 30%.

7. PAT before Exceptional Items:

• 3QFY24 Profit After Tax (before exceptional items) soared to ₹2,868 crore, marking an impressive 112% QoQ growth.

8. Leverage and Liquidity:

• Maintained a gross debt position of ₹75,227 crore as of December 31, 2023.
• Achieved a net debt of ₹62,493 crore as of December 31, 2023, with a Net Debt to EBITDA ratio at 1.70x.
• Maintained a healthy cash and cash equivalents position at ₹12,734 crore, following a Board-approved investment policy that emphasises high-quality debt instruments with mutual funds, bonds, and fixed deposits with banks.

About Vedanta Limited

Vedanta Limited, a subsidiary of Vedanta Resources Limited, stands as a prominent global natural resources company operating across India, South Africa, Namibia, Liberia, UAE, Korea, Taiwan, and Japan. The company holds significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminium, Power & Glass Substrate, and is venturing into semiconductors and display glass. Over two decades, Vedanta has played a pivotal role in nation-building, prioritizing governance and sustainable development with a robust focus on health, safety, and environmental concerns. Committed to becoming the ESG leader in the natural resources sector, Vedanta aims to achieve net-zero carbon emissions by 2050 or sooner, dedicating $5 billion over the next decade for this transition. Rooted in philanthropy, Vedanta actively contributes to local communities, with the Anil Agarwal Foundation, its social initiatives umbrella, pledging Rs 5000 crore for various impactful programs over the next five years, including the flagship project Nand Ghar, establishing model Anganwadis across India. Noteworthy accolades include ranking 3rd in the S&P Global Corporate Sustainability Assessment 2023, listing in the Dow Jones Sustainability World Index, and being certified as a Great Place to Work 2023. Vedanta Limited is publicly traded on the Bombay Stock Exchange and the National Stock Exchange.

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Source: https://www.vedantalimited.com/uploads/investor-overview/financial-results/VEDL-Results-Presentation-3QFY24-Final.pdf