Vedanta result
Anil Aggarwal’s company Vedanta has declared its quarterly results, in which the company has shown excellent earnings. Mining company Vedanta on Thursday reported a strong profit of Rs 5,710 crore in the third quarter with a year-on-year (YoY) increase of 61%. Consolidated revenue increased by 37% to Rs 23,369 crore, mainly due to higher LME prices, better sales volumes, strong premiums and forex gains.
Vedanta showed strong operational performance in the December quarter. Profitability increased in most business segments due to higher metal prices, better premiums, cost control and better production volumes. The company said that EBITDA increased by 34% on annual basis and 31% on quarterly basis to Rs 15,171 crore, which is the highest quarterly EBITDA till date. EBITDA margin increased to 41%, which is 629 basis points higher on an annual basis and 512 basis points on a quarterly basis. This is the second highest margin of the company till date.
Company’s operational performance
Capital efficiency also improved due to improved operational performance. Return on Capital Employed (ROCE) was 27%, which is 296 basis points more than a year ago. This shows high earnings and disciplined capital use. Net debt reduced to Rs 60,624 crore, taking the net debt-to-EBITDA ratio to 1.23 times. In the same quarter last year it was 1.40 times. Operationally, the Aluminum business delivered an excellent quarterly performance. Alumina production record was 794 kilo tonnes, which is 57% increase on annual basis and 22% increase on quarterly basis. At the same time, the production of cast metal aluminum was 620 kilo tonnes, which is slightly higher on annual basis.
The cost of aluminum production declined to $1,674 per tonne, down 11% year-on-year and 8% quarter-on-quarter. This helped in improving the company’s margins. Zinc India also gave its strongest third quarter performance so far. The production of metal derived from mining increased to 276 kilo tonnes, which is 4% increase on annual basis and 7% increase on quarterly basis. Refined metal production increased to 270 kilo tonnes, which is 4% increase on annual basis and 9% increase on quarterly basis. There was good control on costs and the cost of zinc production came down to $940 per tonne, which is the lowest for the third quarter in the last five years.
Tremendous improvement was also seen in the international zinc business. Metal production from mining increased by 28% on annual basis to 59 kilo tonnes. Production at Gainsbourg mines increased 40% year-on-year to 49 kilo tonnes, reflecting improved recovery and stable operations. In the oil and gas business, the average daily production during the quarter was 84.9 thousand barrels of oil equivalent. At the same time, the volume in iron ore business also improved. Iron ore production at Karnataka operations reached 1.2 million tonnes, up 3% year-on-year and 25% quarter-on-quarter. Goa operations produced 0.4 million tonnes, up 7% year-on-year.
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