Vedanta Limited on Friday released its fiscal second quarter earnings report with profit at Rs 5,603 crore in comparison to a loss of Rs 915 crore posted during the corresponding quarter of FY24. It reported revenue from operations at Rs 37,171 crore, down 3.6 per cent as against Rs 38,546 crore during the second quarter of previous financial year. The mining major’s EBITDA stood at Rs 9,828 crore, down 14.4 per cent on-year, majorly due to favourable output commodity prices, structural cost saving initiatives and increased premia across businesses.
Ajay Goel, CFO, Vedanta Limited, said, “This has been an outstanding quarter, highlighted by significant progress in our corporate and strategic initiatives, strong financial results, and excellent operational performance. We delivered our highest-ever H1 EBITDA of Rs 20,639 crore, up 46 per cent YoY, with a robust 34 per cent EBITDA margin and PAT before exceptional items of Rs 4,467 crore, a 230 per cent YoY increase. This strong performance is driven by cost efficiency, volume growth, and favourable commodity prices.
Additionally, he added that the company has raised $1.4 billion at Vedanta through a $1 billion QIP and a $400 million HZL OFS. At the same time, with the $1.2 billion VRL bond issuance and ongoing deleveraging, Vedanta has reduced Holdco debt to $4.8 billion, the lowest level in a decade.
The second quarter depreciation & amortization stood at Rs 2,696 crore, up 2 per cent YoY mainly in Oil & Gas and increased capitalization at Aluminium.
Arun Misra, Executive Director, Vedanta Limited, said, “Vedanta is proud to report our highest-ever first-half EBITDA of Rs 20,639 crore with 46 per cent growth YoY. The second half of this year will be a transformative period with our major growth and integration projects coming online and ramping up. Through our structural interventions and initiatives, we have significantly reduced our cost of production over the past 12-15 months, and we will continue this trend in the coming quarters. As we move forward, operational excellence, sustained growth, and ESG leadership remain our strategic priorities. With a rich, diversified asset portfolio, a stronger balance sheet, and ongoing growth projects, we are well-positioned to deliver exceptional overall performance.”
Q2 performance across businesses
Here are the key operational highlights across the Group during the Quarter & Half Year:
Aluminium: The segment posted an all time high first half cast metal production at 1205 kt, up 3 per cent YoY. The company also posted the highest ever cast metal production of aluminium at 609 kt, up 3 per cent YoY. Aluminium cost of production was at 1734$/t, down 4 per cent YoY. Alumina production came in at 499 kt, up 8 per cent YoY.
Zinc India: The company reported all time high first half metal production at 524 kt, up 5 per cent YoY, and highest-ever mined metal & refined metal production in second quarter at 256 kt, up 2 per cent YoY and 262 kt, up 8 per cent YoY. Zinc COP at 1071$/t, down 6 per centYoY, marking the lowest H1 cost in the last 4 years.
Zinc International: It posted lowest ever quarterly COP for Gamsberg at $1125/t. ZI cost at 1195$/t, down 13 per cent YoY.
Oil and Gas: Average daily gross operated production of 104.9 kboepd, natural decline was partially offset by the infill wells brought online in Mangala and RDG fields. Volumes at OALP arrangement rise to 4.0 kboepd vs 1.0 kboepd YoY, supported by ramp-up of Jaya Oilfield.
Iron Ore: Saleable ore production at 1.3 million tonnes, up 7 per cent YoY.
Steel: Production adversely impacted due to the planned shutdown on account of the debottlenecking of Steel Melting Shop and maintenance of Oxygen Plant in Q2.
Facor: Ferro Chrome Ore production at 38 kt, ~2x YoY. Ferro Chrome production at 26 kt, up 18 per cent YoY.
Copper India: Copper Cathodes production at 41 kt, up16 per cent YoY. Tuticorin Smelting operations have remained halted since April 2018. The company is evaluating the legal remedies for sustainable restart of Tuticorin plant.
From: financialexpress
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