Saturday, December 2, 2023

Vedanta Q2 Results: Firm posts Rs 1,783-crore loss vs profit year ago

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MUMBAI – Vedanta slipped into the red in the quarter ended September 2023 as the mining major reported a consolidated net loss of Rs 1,783 crore, against a profit of Rs 1,808 crore a year ago, and Rs 2,640 crore a quarter ago.Consolidated revenue from operations rose 6.3% year-on-year (YoY) to Rs 38,945 crore. Sequentially, the topline rose sharply by nearly 15,4%.

The loss was primarily due to a sharp increase in the net tax outgo during the quarter. The net tax outgo increased to Rs 9,092 crore from Rs 1,674 crore a year ago, due to tax deduction on a one-time gain of Rs 1,223 crore, and on account of the adoption of the new tax regime.At the operating level, Vedanta put up a robust show, with profit calculated as earnings before interest, taxes, depreciation and amortization (EBITDA) growing by 49% YoY to Rs 11,479 crore. Subsequently, the operating margin expanded 847 basis points to 29.47%.

Segment Performance
The zinc business overall was subdued in the quarter, with the domestic revenue declining by nearly 19% and international business revenue falling by 25%.

The aluminium business was also subdued amid weak demand and a fall in prices, as revenue declined by more than 11% YoY to Rs 11,952 crore.

Meanwhile, the copper business reported a nearly 15% growth in revenue to Rs 4,606 crore, and the iron ore business saw a 38% growth to Rs 2,083 crore.

The oil & gas business revenue surged to Rs 8,229 crore from Rs 3,869 crore a year ago.

Segment Operational Performance
Weighed down by the fall in revenue, EBITDA of India zinc business dropped by more than 29% YoY to Rs 3,073 crore, and that of the international business plunged 51% to Rs 289 crore.

The copper business posted an EBITDA loss of Rs 62 crore for the quarter, against a profit of Rs 15 crore a year ago.

Meanwhile, the aluminium business EBITDA surged nearly threefold on year to Rs 1,967 crore, and that of iron ore increased 50% to Rs 320 crore.

Other Highlights
The company generated strong free cash flow of Rs 5,694 crore during the quarter, up 84% sequentially.

The net debt decreased by Rs 1,420 crore sequentially to Rs 57,771 crore as of September end. The net debt/EBITDA was 1.64x, compared to 1.88x a quarter ago.

On Friday, shares of Vedanta ended 1.6% higher on the National Stock Exchange at Rs 232.75.

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