Conference Call with Vedanta Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Aluminium and Aluminium Products company Vedanta announced Q3FY25 results Financial Highlights: Consolidated Revenue of Rs 38,526 crore, up 4% QoQ and 10% YoY. Consolidated EBITDA of Rs 11,284 crore, up 30% YoY and 9% QoQ; Margin1 at 34% up 517 bps YoY. Profit after tax (before exceptional) at Rs 4,876 crore, up 70% YoY and 9% QoQ. Net Debt at Rs 57,358 crores with Net debt/ EBITDA at 1.4x (vs 1.7x in Q3FY24). Cash and Cash Equivalent improved by 66% YoY on the back of robust Free cash flow (precapex) of Rs 6,766 crore. CRISIL upgraded long-term credit rating from AA- to AA with Watch Developing. Parent company, VRL successfully restructured USD 3.1 billion through bond issuances in the last 4 months resulting in longer maturities of up to 8 years, better covenants terms and a significant reduction in average coupon rate by 250 bps. Operational Highlights: Aluminum: Highest ever Aluminum production of 613 kt, up 2% YoY. Record Alumina production at 505 kt up 7% YoY. Zinc India: Zinc India achieved lowest CoP in the last 15 quarters; CoP at 1041 USD/t down 5% YoY and 3% QoQ Zinc International: Mined metal production of Zinc International at 46 kt up 12% YoY. Zinc International delivered lowest CoP in last 7 years at 1181 USD/t down 31% YoY. Iron ore: Pig Iron production at 217 kt, up 14% QoQ & 7% YoY. Saleable Iron Ore production at 1.5 million tonnes, up 17% QoQ & 10% YoY. Steel: Saleable steel production at 329kt, lower 3% YoY on account of lower demand. Copper India: Copper cathode production at 45 kt up 9% QoQ & 3% YoY. Arun Misra, Executive Director Vedanta Limited said: “We have delivered our highest-ever 3rd Quarter EBITDA of Rs 11,284 crore. Our strategic focus on cost optimization and production ramp-up across our key businesses has helped us to continue delivering this outperformance. Notably, we witnessed 58% YoY jump in EBITDA at our Aluminium business and 28% YoY increase in our Zinc India business. We expect this outperformance to continue in the coming quarters driven by our ongoing growth initiatives and business integration projects. I am also pleased to note that Vedanta Group companies have once again demonstrated their leadership in sustainability. In the S&P; Global Corporate Sustainability Assessment 2024, HZL secured the top position, while Vedanta Limited ranked 4th among 248 global diversified peers. With our commitment to operational excellence and robust ESG practices, we are confident to capitalize on emerging opportunities and navigate any challenges.” Ajay Goel, CFO, Vedanta, said: “This quarter marks a stellar performance, delivering the highest Q3 EBITDA of Rs 11,284 crore, a remarkable 30% growth year-on-year, with a robust EBITDA margin of 34%. Our PAT stood at Rs 4,876 crore, reflecting an exceptional 70% YoY growth, showcasing the resilience of our business. This success has been driven by our focus on cost efficiencies, volume growth, and favourable commodity prices. The recent upgrade in our credit rating, along with a leverage improvement to 1.4x, highlights our financial strength and the market’s confidence in Vedanta’s growth trajectory. Additionally, the demerger process is progressing well, with the shareholders’ and creditors’ meeting scheduled for February 2025.” Result PDF